Updated: Apr 22, 2020
Fashion retailers all share the same basic path to success, and ultimately, we see some implement their process improvement plans effectively, but most struggle needlessly without mentorship and support. Retailers commonly share the same goals, but how each retailer goes about achieving their goals and how they react to changes along the way is what causes the variation in their results.
So, whether you are an experienced merchant, or just getting into the industry, we have 8 innovative solutions and operational efficiencies to help drive new demand for fashion retail so that you can maximize profitability in your retail business.
It’s no surprise that, without merchandise, retailers would not have a business. Merchandise planning is vital for your business’s success. Keeping items in stock and buying new merchandise is the biggest cost to retailers. It is also true that merchandise planning alone can make or break your business. If the right merchandise is not allocated to the right places at the right time, the business will most likely fail.
As a retailer, you must have a strong merchandise planner who understands the product. Your merchandise planner must analyze budgets, targets, and pricing in order to maximize your potential. With the right merchandise planner, you’ll have the necessary number of items in stock, at the right time and place, so that the store can sell the product and be profitable.
Whether it’s the food industry or the fashion industry, every business must have a financial plan in place. After all, the success of a business relies on finances being in order. Financial planning, however, also happens to be one of the most difficult parts of a business plan for retailers. Often times, retailers hire a business consultant to handle their financial planning alone just because of the complexities involved.
Financial planning includes break-even analysis, sales forecasts, balance sheets, and cash flow statements. Financial statements should be broken down regularly, at least once a week if you are a new business, and monthly once your business is running successfully.
Once you have the merchandise in your store, you need to sell it. The best way to maximize sales is to have a powerful marketing strategy in place. Marketing strategies determine how you will reach your target audience. It will also help you to build an image and a reputable brand.
Store operations refer to all the activities that keep a retail store functioning each day. Successful retailers carefully consider, plan, and execute each activity. Operations include store design, display placement, customer service, money and credit handling, shoplifting prevention, premises maintenance, staff management, inventory optimization, and supply chain management ensuring that there are enough products in the store.
Today, retailers are faced with the struggle of balancing the synergy between the physical store and online operation. As the internet and mobile devices continue to play a prominent role in our daily activities, it’s important that retailers are effectively managing store operations both online and at the physical location.
Additionally, store operations are a huge contribution to the retailer’s overall success. For instance, the store’s design will determine how customers view items. You will want to consider how items are displayed in the store, the lighting that the items are in, as well as product arrangement.
Retailers must also have the necessary technology in place for the store to be successful. Retailers need the appropriate technology for the following reasons:
· To increase the business’ ability to respond to the evolving marketplace
· To collect and analyze customer data
· To improve business processes while keeping tabs on items in stock
Not only is it important to have the right technology in place, but it is also important to have a team in place that understands the technology, how it functions, and how it can improve the business. Technology can help to reduce costs and maximize profits for retailers.
Product distribution is an important step that often goes overlooked by retailers. Many times, retailers search for the cheapest or most convenient option rather than focusing on a quality distribution strategy. Distribution refers to the process of making a product available for purchase by dispersing it through the market. The process of distribution involves transportation, packaging, and delivery. With the right distribution process, a company can enhance its exposure in the market and build a competitive edge when it comes to speed and efficiency.
Quality is essential when it comes to satisfying your customers, and retaining their loyalty, so that they will return and make purchases in the future. As a retailer, you want to ensure you are stocking your business with quality products, as an important contribution to long-term revenue and profitability. If you are selective and choose high-quality products, you can charge higher prices in your store to generate more revenue.
In addition to product quality, you will want to make sure that your products are sustainable. When selecting items for your store, you want to provide customers with pieces that can be used all throughout the year and can be a part of several outfits. You want to select products that can fit any occasion. By doing so, you will be able to maintain a strong selling point so that it never becomes difficult for your business to sell the products that are in stock.
Jordan Alliance Group: Helping your business reach that end goal
As mentioned earlier, each retail business has the same goal: to reduce expenses and maximize profitability. At Jordan Alliance Group, that is exactly what we do. We help retailers improve their business operations to become more profitable.
As you can see, there are several factors that contribute to the success of your business. Unfortunately, no one can do it all. That’s why Jordan Alliance group is here to help. We will help you with technology, distribution, financial planning, merchandise planning, product selection, and provide you with other solutions that will maximize your success.
If you want to move your business forward, while becoming more profitable and sustainable, we are here to help! Call our team today for a free consultation!