Seamless interaction
2
Experimental brand
3
Stores need to have a more targeted in-store inventory in order to remain viable and profitable. By focusing on high-volume or hard-to-ship items, stores can offer customers an enticing convenient alternative to waiting for online orders. But it’s also worth remembering that, as you narrow your inventory, the costs, brands and other aspects of the products you stock will define and differentiate your brand.
Online sales can be useful in informing these inventory decisions. Localised data provide an opportunity to learn about fans of the brand who may not have visited a store. They might be more willing to connect with your store if they can purchase key items the same day – and have the option to ‘buy online, pick up in-store’ (BOPIS).
Customers have become accustomed to hybrid brick-and-click options for online purchases, such as kerbside pickup and local delivery, and this trend will likely continue.
Integrating the other side of transactions – returns – will provide another incentive to interact in person. By using stores to offer a better return experience, retailers can attract even those who never make initial purchases in-store. In-store returns drive better customer service, help integrate the digital and physical experience, and can result in incremental sales.
A safe environment will also be a factor for some time to come. Retailers will need to clearly communicate the actions they have taken to enhance the store experience. Technology enhancements, such as contactless payment, can also help address concerns.
The motivation to go to a store will be materially reduced. Retail environments will need to invest a lot more in engagement to attract and meet evolving needs.
The purpose of physical stores is evolving. Stores offer a differentiator from online-only retailers, with the ability to create positive retail experiences – such as in-store marketing events and related social media buzz – and build brand affinity.
Companies with strong brands, such as Nike, offer a good example of an engaging, experiential brand. They have adapted their business models from being a manufacturer to also becoming retailers, with a large store footprint and a push to digital sales through their website. This shift boosts profitability by cutting out other retailers and increases their direct interaction with customers.
Smart inventory
1