{"id":12435,"date":"2021-11-28T19:43:20","date_gmt":"2021-11-28T19:43:20","guid":{"rendered":"https:\/\/www.parcelpending.com\/?p=12435"},"modified":"2022-02-16T20:40:21","modified_gmt":"2022-02-16T20:40:21","slug":"7-ways-to-improve-retail-operations","status":"publish","type":"post","link":"https:\/\/www.parcelpending.com\/en-us\/blog\/7-ways-to-improve-retail-operations\/","title":{"rendered":"7 Ways to Improve Your Retail Operations"},"content":{"rendered":"

With a perfect storm of pent-up <\/span>consumer demand<\/span>, labor shortages, material scarcity, and choked ports of passage, retailers are rewriting the rules for success this holiday season. Whether you run a <\/span>small business<\/span> or a large one, here are seven innovative and <\/span>actionable insights<\/span> on how to improve <\/span>retail operations<\/span> for your business.<\/span><\/p>\n

#1 Diversify Your Suppliers<\/strong><\/h2>\n

Although consumers are well aware of <\/span>supply chain<\/span> disruptions, they still expect their holiday gifts to arrive on time. As a result, diversifying your suppliers is paramount. After all, 80% of consumers expect faster and flexible shipping options from retailers<\/span>1<\/sup><\/span>. This is one way of meeting <\/span>consumer demand<\/span> and retaining <\/span>customer loyalty<\/span>.<\/span><\/p>\n

#2 Enhance Fulfillment Options<\/strong><\/h2>\n

Is your <\/span>physical inventory<\/span> still fully stacked despite continuous sales? One of the reasons behind this might be a lack of <\/span>inventory optimization<\/span>. Bottlenecks in the distribution channel can translate into difficulty getting goods picked and sorted for either pickup or shipping. Best Buy, for example, recently converted its <\/span>store layout<\/span> to ensure 25% of floor space is dedicated to order fulfillment<\/span>2<\/sup><\/span>.<\/span><\/p>\n

#3 Automate to Reduce Reliance on Labor<\/strong><\/h2>\n

The shortage of workers is real. <\/span>Retail<\/span> job openings hit 1.3 million in August 2021<\/span>,<\/span> and 50% of employers reported not hiring enough staff in September<\/span>3<\/sup><\/span>. Target announced plans to hire 30,000 fewer workers for the 2021 holiday season<\/span>,<\/span> and Walmart recently announced that it\u2019s raising its hourly pay by $1.00 per hour for its 565,000 <\/span>store<\/span> workers. The labor pressure makes automating tasks essential. From <\/span>inventory<\/span> to information, leveraging technology for automation is key. With automation,\u00a0 there are fewer employees to monitor, freeing up the task load of key personnel, like the <\/span>retail operations manager<\/span> and even the <\/span>store associate<\/span>. Automating certain tasks can also boost <\/span>operational efficiency<\/span> because there are fewer margins of error. Operations that could be automated include <\/span>inventory management<\/span>.<\/span><\/p>\n

#4 Boost the Customer Experience<\/strong><\/h2>\n

Consumers are willing to open their wallets this holiday season. The National <\/span>Retail<\/span> Federation expects retailers to ring up sales of approximately $851 billion between November and December 2021, an increase of 9.5% from last year. The difference this year? <\/span>Shoppers<\/span> are seeking a seamless, personalized experience. In order for them to become <\/span>loyal customers<\/span>, they need to feel validated.<\/span><\/p>\n

According to recent research, 63% of respondents state that they are more likely to shop with brands that customize and personalize the experience for the shopper<\/span>4<\/sup><\/span>. As <\/span>Alex Atzberger, CEO of Optimizely explains: “Retailers have a captive audience of consumers who are seeking relevant content, ideas and offers online. However, only the brands that have progressed their digital maturity through experimentation and personalization to become adaptive to consumer needs will differentiate and win over <\/span>shoppers<\/span>.” <\/span>In short, one of the solutions to increase <\/span>customer satisfaction<\/span> is a customized shopping experience. Learn more about how you can <\/span>improve the retail customer experience amidst COVID-19<\/span><\/a>.<\/span><\/p>\n

#5 Implement Buy Now, Pay Later<\/strong><\/h2>\n

Buy Now, Pay Later (or BNPL) adoption is booming! Revenue skyrocketed 45% in 2020<\/span>5<\/sup><\/span>. <\/b>And<\/span> in a recent Adobe survey, 25% of respondents stated that they have used this shopping option within the last three months.<\/span><\/p>\n

#6 Expand BOPIS Options<\/strong><\/h2>\n

Target took a huge leap forward towards solving a shortcoming of curbside pickup by allowing buyers to designate another person to retrieve their order. Since last-mile delivery costs account for approximately 50% of shipping costs, getting customers to pick up their items in <\/span>store<\/span> is a significant cost savings. Further, according to research by PYMNTS, the number one draw for getting customers back into stores is Buy Online, Pick-up In-Store (<\/span>BOPIS<\/span><\/a>), accounting for 44% of respondents<\/span>6<\/sup><\/span>. Consider revisiting your BOPIS strategy<\/a> and finding ways to improve it.<\/span><\/p>\n

#7 Install Retail Smart Lockers for Self-Service BOPIS<\/strong><\/h2>\n

Retail parcel lockers are one way of expanding your BOPIS offerings to personalize the <\/span>shopping experience<\/span> for your customers. Here are just a few <\/span>key performance indicators<\/span> (or KPIs) that Buy Online, Pick-up in Locker (BOPIL\u00ae) can help you realize for your business:<\/span><\/p>\n