The Future of Brick And Mortar Retailers
Updated: Jul 31, 2020
As the digital era progresses, brick and mortar retailers are in the middle of a radical transformation, and anyone that believes there is no future for brick-and-mortar retailers is not thinking about the big picture. Despite the competition between brick and mortar retailers and eCommerce businesses, brick and mortar retail is evolving in response to changes in the buying habits of the modern consumer in some very effective ways.
So, as large brick and mortar retailers that have been around for years continue to file for bankruptcy or go out of business, you might be wondering how others stand a chance in 2020. Well, we’re here to talk about how you can outperform the eCommerce retailers, so your brick and mortar retail store can thrive for years to come!
How Brick and Mortar Retailers Can Meet The Demands of The Modern Day Consumer
Everything in 2020 is different because of the COVID-19 pandemic, but once all the chaos passes and it is safe to get out again, consumers will be showing up to brick and mortar shops in masses.
The reality is, brick and mortar retailers offer its customer a shopping experience that you can’t get online and until that changes, the future of brick and mortar retail is very bright. Don’t get us wrong; online retail is great for many things, but in terms of experience, there is nothing like heading into your favorite store, trying an item on, and holding a product in your hands. Brick and mortar retailers also offer convenience. Sometimes you need an item right then and there, and you don’t have 2 to 3 business days to wait for the product to arrive. For these reasons, we don’t expect brick and mortar retailers to disappear any time soon.
Convenience, Convenience, Convenience
So, what’s the difference between brick and mortar retailers that will survive and those that will go out of business? It’s all about the adaption to the digital era. The most successful brick and mortar stores have implemented strategies to where they combine the digital world with their brick and mortar store. For instance, Target and Walmart are known for their same-day delivery and in-store pickup. This is a huge convenience for consumers as they no longer have to search for an item in-store and if they know exactly what they need, the items could be ready for pickup immediately.
On the flip side, we are seeing eCommerce businesses build brick and mortar locations just to stay competitive with the retailers that have both physical locations and have immersed themselves in the eCommerce industry. The point is, when you have both an online presence and a brick and mortar shop, you are set up for success as you are able to meet your customers everywhere they are.
The Omnichannel Availability
Consumers expect that a retailer that has both an online store and a physical location, has more inventory. Consumers are demanding that they have access to this inventory and if your inventory is not visible to consumers, you are missing out on sales. If consumers are interested in an item, they don’t necessarily care whether it's available online or in-store. What matters most to them is that they can get the item when they want it, regardless of where it comes from.
For that matter, retailers must be able to fulfill orders for both online stores and brick and mortar locations. When it comes to inventory, retailers must treat their inventory of all stores as one.
The Transformation of Supply Chains
The modern consumer is all about convenience. When they want a product, they want it right then and there and brick and mortar retailers are doing their best to keep up with these demands. As retailers undergo these challenges, so are the suppliers they work with.
Why are retailers like Amazon able to ship most items within 2 days? It’s because they have a distribution center with all of the items packed and ready to go. Amazon is so desirable for consumers because of its efficiency. To provide the convenience that consumers are looking for, retailers should consider working with suppliers to be dropship ready. To meet the demands of consumers, suppliers are working with retailers so that rather than suppliers shipping an item to the store and waiting for it to be sold, it can be sold instantly and delivered straight from the supplier.
Suppliers and retailers are both experiencing significant challenges and they should work together to ensure a smooth, profitable process. Here are some things retailers must know before working with a supplier:
What Package Carriers Do You Use?
To ensure a seamless shipping process, both the retailer and supplier must use the same package carrier. If a retailer has a contract with UPS and the supplier has a contract with FedEx, things could get a bit sticky which is why in most cases, the supplier will almost always have to make the switch.
Retail Branded Packaging Slips
Retailers don’t want their customers to know that a product didn’t come straight from their store which is why retailers provide suppliers with a branded packing label. Before an item is shipped, be sure you provide suppliers with a branded shipping label.
Is Inventory Updated Frequently?
An advantage of selling inventory straight from your retail store is that you know exactly what is in your inventory. When working with a supplier, retailers must know when the supplier has items available. Most suppliers nowadays are required to post inventory information so if an item is out of stock, the retailer can take the necessary precautions to list the item as out of stock.
Many suppliers handle returns, but some suppliers leave returns up to the retailer. It is critical to understand how suppliers handle returns because you will want to ensure the customer’s experience is simple and smooth.
Jordan Alliance Group: Helping Brick And Mortar Retailers Thrive
To be a successful brick and mortar retailer, you must be able to quickly adapt to the digital era. As you can imagine or might have already experienced, there are many hurdles you may encounter during this transition. Don’t be discouraged however, Jordan Alliance Group is here to help.
Our team at Jordan Alliance Group will help retailers navigate through the transition to ensure your brick and mortar store and online store work hand in hand so you remain profitable and thrive in the coming years.
Contact our team for a free consultation and let’s get started.
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