Author: katherine

Retail recruitment is an essential part of the retail business. Whether it is the holiday season or busy hours; retailers are always in need to hire retail employees. In other words, it is a part of retailers business that they have to keep recruiting employees. Further, there are times in retail, when retailers are in need of hiring new retail employees. Therefore the process of hiring can become massive at time. Moreover, during the retail recruitment, if the employees hired are not competent enough, it is damaging to the business and effects sales.        

During retail recruitment, one of the biggest challenges that retailers have to face is finding competent retail employees. Certainly people view retail jobs as the first step towards achieving better opportunities. Therefore it is very difficult to find employees that are not just proficient but also sincere to the company.

“Nothing we do is more important than hiring and developing people. At the end of the day, you bet on people, not on strategies.”

–Lawrence Bossidy

However, there are employees that immensely help retailers with their competence and behavior. Therefore retailers need to find the most competent retail employees during the retail recruitment process. In other words, these employees should be such who should not turn around and leave the job soon after being hired.

Which factors should Retailers keep in mind during Retail Recruitment?

Effective Retail Recruitment should Offer full time jobs to Employees  

If retailers want to hire employees for long terms, they should offer them to work for more hours. In other words, the employees that are offered part time jobs eventually look for other jobs that offer more working hours. As a result, of offering them more working hours, employees are also offered more money. In addition, the employees who work as a part job employees are already working at other places. This consequently makes it difficult for retailers to receive their service at its fullest. In other words, their attention will shift because they will have other things in mind as well.  

Hire Fresh & Easily adaptable Employees during Retail Recruitment

Retailers might think that if they hire the employees who have left their competitors is effective. But, this is not the case. Although it seems ideal, but these employees are not trained to work according to the competitors way because that is the very reason that they are no more working in the competitors company. Therefore it is better that during the retail recruitment. Retailers should hire employees that are fresh and new as compared to the ones who have already worked with the retailers’ competitors. The key to hiring employees is their skills and ability to learn rather than experience.

Practically Analyze the Employees

Interviews are an effective way to judge the competence of the employees. However, during retail recruitment, retailers should make sure that they see how the employees interact with people. In other words, retailers should see how these employees deal with various store and customer situations. As a result, it will give retailers enough idea during retail recruitment about how competent the employees are.  

People Skills are essential in Retail Recruitment

Certainly in retail, people skills are the most significant. Therefore, it is essential that retailers should hire employees that know the art of dealing with people. Moreover, the employees should be great team players. In addition, they should be able to deal with people on daily basis and tackle customer situations of all types.  

Do not be Abrupt during Retail Recruitment Process

No matter if the retailers think that they have founded the right employee that they were in need of, they should not hire instantly. That is to say, they should still take time to interview others because they might find someone better and more qualified.   

Promote the company policies in case of Competent Employees

If retailers have found the employees that they were looking for, they should promote the company’s policies to them. That is to say, company benefits, company atmosphere and history. In other words, it is difficult to find the right and competent employees, therefore once found they should not be let go.  

To conclude, competent Store employees are very beneficial for the success of business. That is to say, a store that has the right and proficient retail employees can be way more successful than the ones who have incompetent employees. Competency also includes that the employees should be well educated in technology and retail gadgets such as Autonomous shopping carts, Point of sale system etc. however, even if the customers are not well acquainted with the retail technology it is not that much of a big deal. That is to say, retailers can train them if employees are proficient and open to learning.     

Retail signage is the first impression of the store on the customers. That is to say, it is the first thing that grabs the customers’ attention. Retail Signage is the main factor that allows customers to visit the store. However, if the retail signage’s is inappropriate, it can become a reason to lose customers. In other words, unsuitable signage will lead to confusion among the customers. As a result, it will lead to a decrease in sales. Therefore to draw customers easily to the store and to direct the new customers towards the store, retailers need to be proficient when it comes to retail signage.

Drive Store Traffic through Retail Signage

In this article, we shall talk about the ways through which shop owners can design and implement effective retail signage.

Retail Signage should be Clear & Visible

One of the most important factors when it comes to retail signage is its clarity. In other words, the customers should be able to view clearly what the store is about and what the signage says. If the signage is not clear, the whole point of drawing customers to the store will lose its meaning. Therefore, create the signage in a way that is visible and attractive. On the other hand, small-sized signage boards and small fonts are unattractive. Further, they lose the interest of the consumers.

Entrepreneurs should keep their customers in mind while planning their retail signage. For example, customers might view signage while driving. On the other hand, they might view it while walking past it. Further, the passersby may be facing eyesight issues. Therefore, by keeping in mind the convenience of all customers; entrepreneurs should create their signage boards.

Appropriate Retail Signage

Retail signage has a purpose for sure. Therefore, creating retail signage based on that purpose is essential. Consequently, entrepreneurs will be able to make the right investments.

Outdoor Retail Signage

Firstly entrepreneurs can focus on outdoor retail signage. As mentioned above, the outdoor signage creates the first impression on the customers. Therefore it needs to be attractive so that it captures the customers’ attention. Further, it should make visible the brand’s logo. Moreover, it should also give a basic idea of the store’s inventory. As a result, retailers shall be able to know what the store offers. Another significant tip is to change the signage quite often because it is refreshing and new for the customers.         

Directional Retail Signage

Secondly, entrepreneurs need to focus on directional signage. In short, these are indoor signs that direct the customers towards certain areas of the store. In other words, the directional signage; if clearly visible, leads the customers into the store. Consequently, it will help save consumers time.

Promotional Retail Signage

Thirdly there is promotional signage. This is used to promote products and sales. Therefore, they should be witty and striking. If not that experienced, store owners should conduct research on it and then plan their promotional signage. As a result of the research, they can implement it using their own style and way. Further, promotional signage should provide clear information about the products being offered. But, they should not also be lengthy descriptions that lose the interest of the customers. Moreover, promotional signage should also be changed frequently.

Digital Retail Signages

Another type of signage’s is digital signage. This allows entrepreneurs to personalize their message. In other words, they can keep changing their messages according to the situation. Digital signage is very important when it comes to dealing with modern consumers. Another benefit of digital signage is that the message is changed easily according to customer needs.

Placement of the Retail Signage

There are certain places in the store where customers expect signage. In other words, while implementing the sign ages in the store, retailers should know well the areas of the store that require signage. For example, keep in mind that the eye level for people is different; children, adults, and people of different heights. Therefore while implementing signage; retailers should know well where to place them. Further, they should also keep in mind the functionality of the sign ages and should place them accordingly.     

Retail Signages should be Concise & to the Point

Retailers should not keep their Signage boards lengthy and complex. In other words, messages on the signage should be conveyed in minimum words. Further, shop owners should not bombard customers with excessive signage. That is to say, they should be adequate and short. Further, store owners need to keep in mind that the text on the signage board should not be in caps. In short, this is disrespectful for the customers because it seems impolite and rude.       

Conclusion

To sum up, these above-mentioned tips shall greatly help retailers and shop owners drive store traffic and increase their customer growth. Retail signage holds great significance for the in-store customer experience. In other words, it can either increase or decrease the number of customers. Hence the shop owners should make each sign ages noticeable, concise and on point.

Another effective and helpful way that helps enhance customer experience is having a good POS. It solves many issues. As a result, this will help save the customers time and provide them with effective customer service.    

There are several factors that lead to a customer’s decision to buy a certain product. Further, it also depends on the recommendations that their relatives give to them regarding retails stores. In addition, customers also do a lot of research before visiting a store and buying a certain product. In today’s modern world, customers buy online as well. Therefore it is the internet and not the salesperson that enhances their sale experience. Therefore, while customers research for a product online, they come across either positive feedback or negative feedback on the internet. That is to say, if the product or the brand receives positive feedback it is great for the company name. However, if the business ha negative feedback, it is harmful to the business. In other words, the prospective customers will choose the competitors that might have positive feedback.     

Why is it essential to get Positive Feedback?

Certainly, as mentioned above, because of e-commerce, people highly regard the feedback of other customers. In other words, it affects their sale decision. Further, it is due to these reviews that the customers are able to gather the information they are looking for. Therefore customers are convinced to buy the product when they see positive feedback on the product they intend to buy.

How to get Positive Feedback?

Below, we shall discuss the strategies that shall help retailers receive positive feedback for the retail store.  

Receive Positive Feedback by asking the Customers at the Right Time

If retailers want to receive feedback, they will have to ask their customers. Further, customers are willing to give feedback. In other words, there are quite a few customers who would deny the retailer’s or the salesperson’s request to give feedback. However, the key is to ask the customers for feedback at the right time. As a result, the retailer will receive positive feedback from their customers. That is to say, retailers need to understand when the right time is to get positive feedback from their customers.

By the right time we mean, when the customer is convinced and satisfied with the employee’s service of a product that they have used. Secondly, when they have reordered some items. Thirdly, when they recommend other people to the store. Moreover, when customers promote the brand on social media for example tag the brand. Therefore retailers should very politely ask the customers for their review.

Certainly, a POS System can help retailers get the feedback from their customers. In other words, retailers can automate the customized feedback emails for their regular customers on their POS Systems. As a result, it can greatly benefit the retailers from getting feedback from their customers without extra effort.

Feedback process should be Simple & Convenient for Customers

Secondly, retailers should make the reviewing process simple for the customers. That is to say, customers will not be willing to give feedback if the reviewing process is difficult and requires effort. In other words, retailers will give reviews if the review option is easily accessible to them. Therefore what retailers can do is, add a section on their website that is easily accessible to their customers. For example, offering to give reviews through the star system is quite convenient for the customers. Moreover, retailers can add links in their emails to the customers that shall directly take them to the link.             

Receive Positive feedback other than your own Website

The website should not be the only place for feedbacks. That is to say, retailers should submit their review forms on the third-party sites as well. In other words, there are many sites that offer positive feedback from customers. Therefore once retailers have registered themselves on these websites, they should take the reviews from the visitors. Moreover, for the in-store experience, retailers can implement signage that invites them to review their site online.

Offering Rewards leads to Positive Feedback

The customer’s time is valuable. Therefore it is a good option to give them rewards for giving reviews. Because of the rewards, they shall be convinced to give positive feedback to the store. Therefore, retailers can offer them discount cards as a result of their feedback to the store. Further, retailers can reward one of the customers from the list of all those who gave reviews. However, retailers should not but fake positive reviews because it is nonprofessional and unethical.  

Conclusion

To conclude, once retailers receive positive feedback, they should share them. Moreover, the businesses that have positive feedback have more chances of sales as compared to the ones who receive negative feedback. Consequently, it helps build trust and is essential for business growth. That is to say, feedback, in general, helps us improve and prosper.

“We all need people who will give us feedback. That’s how we improve.”

—Bill Gates

POS Terminal Forecast 2020-2025 based on Market Statistics

Based on Arizton’s recent research report, rapid growth will occur in the POS Terminal Market. To clarify, the estimated growth rate of the POS Terminal Market, in the period of 2020-2025 is at a CAGR of over 8%.

Demand for POS Terminal

The global POS terminal market is rapidly growing. Further, the demand for POS payment terminals is also increasing immensely in countries like the US, China, and India. To clarify, due to the flourishing retail industry, retailers are in need of POS payment terminals and mPOS terminals. Further, the popularity and immense sale of these products are due to the high demand for POS features in Asia-Pacific countries. In addition, the estimated growth rate of the mPOS terminal market, in the period of 2020-2025 is at a CAGR of over 9%.

Urbanization expects enhanced POS Terminal Features

Enhanced features and further inventions are expected in transactions, payment technology, and security technologies. Therefore, advanced and modernistic features are expected to be welcomed by the retail market with open arms during the estimated time period (2020-2025). However, according to Arizton, a very significant reason for the popularity of the POS terminal among merchants is Urbanization. In other words, urbanization certainly leads to better job opportunities and living standards. This consequently enhances the per capita disposable income. As a result of the change of lifestyle, consumers are willing to spend more. Further, people and retailers are interested in the latest gadgets and technologies. As a result, it has become essential for retailers and store owners to facilitate consumers with well-advanced technology and convenience.       

POS Terminal Product Popularity

According to Arizton statistics, fixed or hardware POS systems have been doing immensely well over the past years. This is due to the increase in stores in general. Further, the increase in per capita income and consumer behavior leads to increased growth. Moreover, advanced POS features such as inventory management and loyalty programs are another cause of the fixed POS terminal being well received and in demand. In addition, the POS is highly popular among restaurants and retail stores because of its notable and distinctive features. People also prefer cashless transactions and mobile payment transactions. Because of this, mPOS’s popularity is increasing. This popularity is expected to grow further by 75% during the estimated time period.     

EMV based Point of Sale; the highest growth rate in the terminal market

Arizton states the EMV point of sale is expected to have the highest growth rate during the estimated period in the POS Terminal market. Further, this EMV facility guarantees security which makes the probability of consumers depending on it more and benefiting from it at its fullest. India; an emerging market is on the go to implementing EMV cards. In addition, the Reserve bank of India has replaced the simple cards with the EMV cards, hence, including the demand for it as well. Moreover, the developed countries have already adopted the EMV cards; Canada and the US are on the top.

However, the non-EMV system of cards is fading out especially in developed countries. That is to say, these chip-based cards are becoming a regular part of the system of the developed countries. For example, the US has demanded the use of EMV cards in their state.  

NFC POS Terminals

NFC POS terminals are also gaining immense popularity. The Internet has recently been a setback therefore the NFC is immensely increasing. As a result, NFC systems are also increasing. The market has shown huge progression with regards to the NFC POS terminals and has an estimated record of 58 million sales. China, Turkey, and Brazil are amongst the major countries that are adopting the NFS ready POS terminals. However, the non-NFC POS terminals are also in use because of its popularity in shopping malls. Further, these devices are gradually evolving in the developing countries because these countries are slow in taking on the NFC technology.                 

End-user Insights

Certainly, the retail sector is adopting the Mpos system rapidly. Because of the digital payment solutions, the APAC countries are experiencing a digital transformation. Firstly, demonetization in India has played a significant role in the adoption of credit and debit cards. Secondly, the advanced POS and payment systems in the market have also led to the use of credit cards more as it offers convenience. Thirdly, restaurants are also vast users of POS systems. That is to say, advanced systems naturally provide good customer experience and simplify business proceedings.    

Food Industry; A Prospective user of POS terminal

According to the Arizton statistics, the immense increase in the food and restaurant industry in the APAC countries is one of the major industries that will demand POS terminal. That is to say, the inventory tracking feature of the POS system is highly beneficial and helpful. Further, there are POS features that facilitate the industries and businesses immensely. Therefore, the POS system shall do immensely well in APAC countries.

POS Terminals Insights by Geography

As mentioned above, the APAC countries are the largest users of credit and debit cards. China is the fastest-growing country in terms of financial cards, succeeded by India. However, credit and debit cards will grow in the near future. Therefore the rapid transformation in these countries will lead to growth in the market. Banks are also encouraging credit/debit card users as they offer discounts on their usage.

Further, the use of cards through POS is increasing due to the significance of the E-Commerce sector today. The Mpos variant is influencing the European POS market. That is to say, payments through digital cards are huge in Europe. However, “the awareness of Point of Sale products in countries such as the UAE and Saudi Arabia is likely to influence the market.” On the other hand, The Middle East and African countries use cash as a payment method, but with the awareness, they have gradually been advancing and shifting to move advanced payment methods.   

Significance of Retail Photography

Images are significant when it comes to the brains’s responding ability. In other words, the brain processes the images faster as compared to the text. Further, the graphics and visuals are more effective in awakening emotions. Hence, because most shoppers are emotional shoppers, therefore attracting customers through retail photography is an essential element in retail. In other words, retail photography can prove to be effectual in enhancing sales and attracting customers towards the store.

Therefore it is a must that retailers should have effective and eye-catching pictures on their sites as well as their brick and mortar stores. Certainly, images that are impactful catch customers attention and show professionalism on the part of retailers. Most importantly, they enhance sales. Hence in today’s retail market where online as well as offline impactful image is a must, retailers should enhance their retail photography skills. Therefore, the Teranoid team has come up with the various essential factors that will help retail Photographers enhance their retail photography skills.

Selecting the Right Background for Retail Photographs

While selecting the backgrounds of images for retail photography, retailers first need to analyze where the images shall appear and in what context. That is to say, if the images are for the website, then the standard background will do okay. Consequently, it will make browsing of the site easier for the customers. In other words, having very bright colored backgrounds on the site will result in difficulty and inconvenience for the customers to browse the site.          

However, if retailers want to post images on social media, they can use natural and colored backgrounds. For example, while promoting an apparel store, it is more effective that the retailers should shoot the images outdoors. Consequently, they look more attractive and pleasing. As a result, they tend to convert more sales. In short, the background depends on the type of product the company is selling. 

Using Models along with Products in Retail Productivity

Retailers should think if they want to use models with their products for retail photography. Certainly, this depends on the shoppers. That is to say, retailers will have to see what their customers demand from them. For example, if the customers know a lot about the product, it is not essential to use models. On the other hand, it is essential to show the models using certain products. Consequently, it will be more beneficial in terms of sales. Moreover, there are many people who do not purchase clothes online because they are not sure if the product will fit them properly or not. Therefore, apparel stores use models. On the other hand, people are convinced to buy mugs or toys online. Therefore there is no need to use models, for such products. In short, consumers buy the products that they are not comfortable to buy, seeing others use the product.          

Significance of Lens & Distance in Retail Photography

Right Lens

Certainly, using the right lens and distance greatly helps in enhancing retail photography quality. Therefore, firstly, photographers should select the right lens that photographers need to use in retail photography. This greatly depends on the product. Therefore there is no hard and fast rule for this. However, photographers can avoid wide-angle shots. Consequently, this results in presenting a distorted image of the product.

Distance

Further, photographers need to be sure about the distance from which they should capture the image. That is to say, they should know the exact distance. In other words, they should not capture the image from odd angles. As a result, the image will either seem too close and wide. On the other hand, if photographers take the image from afar, the picture will not be clear.

Lighting

Secondly, retail photographers need to take care of the lighting. In other words, most aspects of retail photography depend on lighting. Therefore retailers should avoid unnecessary shadows. Further, retailers should try to get natural light as much as possible. Moreover, retailers can also use soft boxes for lighting. This will enhance their retail photography lighting.  

What Retail photography demands from photographers after taking the Image

After taking the images, retailers need to perform several other tasks. Firstly, they need to edit the pictures. That is to say, even if the images look fine, photographers need to still check if there is anything they can do to enhance the quality of the image. Therefore photographers need to make sure that the quality and visibility of the image are perfect. Further, if there are any distractions in the image, they can be corrected by editing the image.

Avoid Over editing in Retail Photography

However, photographers should not overdo the editing part. That is to say, the images must not be edited to such a degree that they completely differ from the real product because consequently, this leads to disappointment on the part of the customers. In other words, due to immense editing, there is a huge difference in the image showcased and the real product. Therefore, as a result, customers are dissatisfied and can lead to loss of sales which definitely retailers cannot afford.   

Retail Customers & Ways to Deal with them

An essential part of the Retail industry is to experience different retail customers and to deal with them. There are customers who are flexible and easy-going. On the contrary, there are also such customers who are demanding and difficult. Their needs are unique and complex. Retailers have to deal with various retail customers on a daily basis.

Dealing with these various types of retail customers is necessary for retailers. Below is a list of the types of retail customers that retailers might encounter and ways to deal with them.   

Up to date and Well Informed Retail Customer

Most of the retail customers are up to date and well informed these days. Buyers thoroughly and carefully research before shopping at a particular store. They are well aware of the products in stock. Therefore be prepared because when such retail customers walk into the stores, they are already fully aware of the products available in that store.

For successful sales experience, connect with customers during their research period. For this purpose, make sure that the customers are getting relevant information regarding products on their mobile phones or through emails.

Increase the social media presence and have maximum engagement with your retail customers. Also, be aware of the customer queries either through mail or social media and respond instantly.

The best way to deal with well-informed retail customers is to listen to what they have to say, instead of flooding them with offers.

Also, make sure to provide the well-informed customer with such knowledge that is new to them and something that did not come across them in their research period. Further, highlight such aspects that only your store has to offer.

The Window Shopper Retail Customer

The window shopper has no intention to buy. They just visit stores for amusement and pastime. They might be interested in particular products but their aim is not to purchase. They just want to view and analyze products.

Although dealing with such retail customers seem boring and aimless, but it is essential to acknowledge them. Simple acknowledgment is enough. Do not keep chasing them as they have not visited the store with the intention to buy. Such customers usually inform the salesperson that they are in the store just to browse. Make them feel welcomed and introduce them with one or two new products or about the sale. It is better to let them be until they require assistance.

To get these wanderers to buy, retailers can enhance the presentation of their store. Also, the best and the most profitable products can be highlighted to attract them. Retailers can also encourage Impulse Purchase. Easy-to-grab items are compelling enough to the window shoppers to grasp one or two items.

The Indecisive Retail Customer

The Indecisive retail customer is not sure as to what to buy. They are confused about the items in the store. Such buyers are either not well informed before they come to shop or they are too informed and like too many products that confuse them and affect their decision making power.

The best way to deal with such retail customers is to know about their needs and lead them towards such products. Guiding them and trying to resolve their confusion is the key to such customers. If such customers are interested in buying more than one product, it is easy to persuade them to do so. Provide them with detailed information about the products, in case they are comparing several products.

Loyal and Regular Retail Customers

Retailers should make sure to remain in contact with regular buyers through email, social media, etc. That is to say, they greatly influence sales and are an asset to the business. Hence, there is nothing more valuable to a loyal customer than to appreciate them and their frequent presence at the store.

Regular customers are the best and easiest of all customers. In other words, they know well about the store and its latest products. Further, they exactly know what to buy. Certainly, there is a level of trust among such customers and that is what drives them towards the store frequently. Consequently, this makes the selling process easier as such customers are not demanding and difficult.

Need-Based Retail Customers

The purpose of Need-Based Retail Customers is to search for their desired product and leave the store as soon as the need is fulfilled. They are in search of the product that they are in need of and shall leave if they do not find it. Their reason to shop can be limited to a particular event, a specific need, etc. Although it is a bit difficult to deal with such customers, but they can be turned into loyal customers if their demand is fulfilled and if they find products that they are in need of.

There is no need to get in their way and to bombard them with the information they are not in need of. They are on a mission and they are firm at only achieving that. They should be provided with simple and to the point replies to their queries.

If such customers are in a hurry do not bother them. If they are done with the buying process, speed-up their check-out process to save time.

The Bargain Hunters

Bargain hunters are in search of products with the lowest prices. In other words, they are not regular buyers and have no intention to be amongst such buyers as well. Although it is also not easy to handle such customers as they are not willing to buy products that exceed their desired price rate. However, such customers need to be assured that they are getting a good deal. Further, retailers can also highlight high-quality products.

However, if they are not willing to buy on any term, note down their demands so that they can be informed later during promotions and sales.

The Talkative Retail Customer

Certainly, such customers love to talk while shopping. Moreover, at times, they can keep the salesperson from doing their job. Therefore, the salesperson needs to be polite to such customers, but they need to make sure that in doing so the other customers are not being affected and ignored. That is to say, there is no need for the attendant to indulge with them if they are off-topic or are affecting their duties.

Conclusion

Handling customers on a daily basis is a necessary aspect of the retail world. Retailers need to be engaged with their customers to an extent where they know what their customer demands from them, before customer demand. Moreover, for this purpose, retailers must have a POS System, that allows them to track their customers records and understand their likes and demands. Steve Jobs rightly states while explaining the retailer-customer relationship;

“Get closer than ever to your customers. So close that you tell them

what they need well before they realize it themselves.”

Success in the retail business highly depends on knowing customers and understanding their unique traits and thought patterns. The pressure is always on when it comes to the retail industry and shall only increase in the coming times. To be able to overshadow the evolving competitors, tolerance to understand the customer psyche is required. It is essential to keep a keen eye on the set behavior patterns that operate the customers’ decision-making process.

Certainly it is an art to cut costs without compromising the quality of the products. That is to say, it is very effective for retailers to spend less while maintaining the quantity and standard. There are several reasons that make retailers cut costs. Firstly retailers can have a tight budget at some point in time in their business. Secondly, they might plan to increase their sales while saving the money spent by them. To clarify, whatever the reason might be, it is best to cut costs and improve profits.

However, retailers should not worry that this will affect their standard and quality. In other words, retailers can maintain the product quality and the standard of their company while cutting their costs. Let’s see what are the ways through which retailers can maintain their quality while spending less.

Cut Costs through Customer Retention

Certainly keeping the old customers is way more inexpensive than making new customers. Therefore retailers should focus more on implementing customer retention strategies in their stores. In other words, instead of spending loads of money to acquire new customers, retailers should use the already present resources to secure their regular customers. For example, retailers can track their regular customers through their POS systems. Consequently, they can send them offers that shall help increase sales. This is a very effective way to cut costs but still market the brand. Therefore retailers can further plan several other strategies that they can implement to retain their customers.

Surprise the Customers

Certainly, effective customer service is the most important in retail. Therefore adding in the element of surprise for the customers is also very important. Consequently, retailers shall be able to entertain and satisfy their customers. In other words, sending surprise discounts and promotions to the customers not just results in better customer service but also increased sales. For example, if they are offered discounts, there is a high chance that they shall visit the store more because the limited time discount shall help them visit the store and purchase.    

Cut costs by Spending on maintaining the Quality instead of Promotions

One of the most effective ways to cut costs is to offer high-quality products and the best services to the customers. That is to say, presenting customers with extraordinary service and the best quality products naturally leads to loyalty on the part of customers. In short, if the service and products are of exceptional quality, retailers can cut costs while spending on promotions and advertisements because the service and products will speak for themselves. That is to say, it is better to only invest in making the best products instead of investing in its promotions as well. As a result, such retailers are confident while selling their products because they have not compromised on the quality.

Subletting the Store; an Effective way to Cut Costs

One of the biggest retail expenses is the cost of the store. Therefore subletting a part of the store is very effective and helpful in cutting costs. That is to say, other businesses that are able to move into your allotted space can shift there. As a result, the retailers will be able to share the floor expenses and rent. Therefore retailers can consider implementing this tip in their stores to cut costs.    

Effective Vendor Relationships

Certainly, retailers should try to be good clients. There are businesses that completely lack professionalism. Therefore firstly retailers need to be cordial and polite with their vendors. Secondly, they should have strict rules when it comes to payment. As a result, these things lead to effective vendor relationship management, which eventually results in retailers’ favor.    

Certainly, cash flow is essential for all businesses. Therefore retailers who pay on time are respected and praised. There are vendors who have payment history lists. Further, they rate retailers on their payment. That is to say, they note if their payment is on time. Consequently, the merchants that pay on time will definitely have better terms with their vendors. As a result, vendors offer them better prices as compared to the rest of the market. In short, these merchants are respected and offered discounted prices. Therefore maintaining effective ties with vendors will eventually help retailers to cut costs.    

Invest in Employee Satisfaction

Losing employees is way more expensive than keeping them motivated and satisfied. Therefore retailers should invest in already existing employees. That is to say, retailers can keep them happy. However, it is not essential that retailers spend lots of money on motivating and pleasing their customers. In short, retailers can do little gestures that please their customers. For example, commending and appreciating them. Another important tip is to give bonuses instead of increasing salaries.

To conclude, retailers do not have to lose their quality when they plan to cut costs. As mentioned earlier, while retaining the resources and customers they already have, retailers can effectively cut costs.       

How to Avoid & Prevent Stockouts?

Certainly, stockouts are not a very ideal situation for retailers. That is to say, they not only result in a loss of sales. Moreover, they result in losing customer interest and loyalty. That is to say, shoppers feel disappointed when they are not able to find their desired product. Therefore retailers cannot afford to make their customers unhappy and dissatisfied. Hence, let’s look at the causes of stockouts. Moreover, we shall also find the ways through which retailers can avoid and prevent stockouts.

Inaccuracies in Inventory

One of the most common causes of stockouts is the accurate data in inventories. That is to say, the figures in the inventory often do no match the numbers of products in the store. For example, returns, shipped, misplaced and stolen products. Therefore such inaccuracies regarding products can mistakenly lead retailers into thinking that they have an item in stock. As a result, retailers re order the products that might be in stock because of being unaware of the correct figures.   

Invest in Modern Inventory Management Solutions

We can prevent the inaccuracies by adopting a modern inventory system. In other words, writing records manually is prone to having more mistakes. Therefore it is advisable to use a modern point of sale system that is able to automatically add and remove inventory products as soon as sales are processed. Consequently, retailers do not have to fret over updating details manually. Moreover, a good point of sale system is also effective because it helps manage multiple stores from the same place.

Retailers need to be Vigilant & Active

Secondly, retailers need to be vigilant and aware of what is happening around them. A POS system can handle the intricate details. However keeping things monitored is the retailers’ duty. That is to say retailers need to keep a check of the inventories and the proceedings of the store. Consequently, they shall save themselves from theft and shoplifting. For example, in case of theft, retailers need to upgrade their security systems.

Radio Frequency Identification

Thirdly, retailers should opt for Radio Frequency Identification to maintain inventories. This technology enables retailers to store and trace records and necessary information of the products. Moreover, the RFID enables retailers to monitor and search for products through a portable scanner. Consequently, this makes easier for the store managers to find and track the required items. Further, it informs store managers about the items that need to be restocked.

In-time reordering saves from stockouts

Another major cause is not ordering items at the right time. As a result, retailers run out of stock. Consequently they sell products that are not in demand. Let’s look at the ways through which we can prevent stockouts by ordering in time.

Out of Stock Patterns

Firstly retailers need to find the out of stock patterns. Consequently, retailers can regularly keep a check on the stocks. Therefore, retailers will be able to know which hours and days experience stockouts. Hence, with the help of this data retailers can reschedule their stocks. As a result, they will save themselves from facing stockouts.

Customer Demand

Secondly, retailers should keep a proper check on customer demand. Consequently, they shall be able to predict customer demands on time. In addition, retailers can forecast customer demand as well based on sales records, the turnout of sales and promotions, etc. As a result, these numbers will give retailers a proper understanding of the products that are high in demand. Secondly, retailers need to be aware of customer trends in the market. For example, keep track of the emerging trends that people are attracted to.

Set Re-order Points

In addition, setting re-order points is essential. A good POS system or inventory solution allows retailers to set re-order points. Consequently, retailers are informed when to re-stock orders. Therefore, retailers are saved from facing stockouts.               

Poor Management Skills result in stockouts

Retailers can have the best plans and modern tools, but if their employees are not perfuming well, there is no point. In other words, management skills count a lot. If retailers are not managing the store well, there are more chances of stockouts taking place. For example, the store might have stocks, but if the employees are not refilling the shelves properly, customers will be disappointed because of the mismanagement on the part of employees. Therefore retailers should take care of these issues by focusing on the management of the store.

Vigilant & Active Employees

Firstly retailers should ensure that their staff is vigilant and active. If they are not well informed about the gadgets and technology that retailers are using, they must be educated first. In other words, they should be given training sessions to enhance their performance. Moreover, retailers can make inventory management plans. Further, they can assign duties to individual staff members. For example, one can be in charge of receiving the items. Another should be in charge of restocking the shelves and so on. Therefore this way, inventories will be managed properly and save retailers from stockouts.     

Starting any business requires a plan and strategy. In other words, if retailers want to set their business in motion, they need to have the right frame of mind and a retail business plan to implement. That is to say, it is the retail business plan that answers important business-related questions such as who the target audience shall be, what are the business goals, what is the budget, what will the expenses be, etc, etc.

In this article, we shall discuss the stages that retailers need to implement to make the perfect retail business plan. Therefore no matter if readers are beginning their business or are in the advanced phase, they can benefit from this article.

How to develop a Retail Business Plan?

Retail business Plan requires Management Summary

The management summary or the executive summary includes a detailed document about the business. That is to say, it includes the reason for the emergence of the company and the company goals. However, the specific details differ from retailer to retailer.

The first paragraph of this detailed summary of the retail business plan should explain what the business is about. Therefore, it should give the basic idea of the business. In other words, business synopsis should be discussed in this section.

Secondly, retailers can discuss their aim and goals. In other words, retailers need to explain the purpose of their business and the goals that they aspire to achieve. Thirdly, retailers should discuss company objectives.

Mention the Specifics in Retail Business Plan

After mentioning the major summary, retailers need to discuss their business specifics. For example, retailers should take about their sole ownership or partnership in this section. Further, retailers need to mention the location of their business. However, there might be situations in which the retailer might not have decided the location at this point; therefore they can mention the location where they intend to set up their store or company.

In addition, retailers need to mention the products that they intend to sell in their Retail Business Plan. For example, in case of a company planning to sell apparel, they shall discuss the type of clothing and the age that they are catering to. In the same vein, if they are offering technological gadgets such as Point of Sale system, they need to discuss the features that it shall possess. Further, they can also discuss the significance of their product and how is it special and distinct.

Target Market

This section of the Retail business plan should discuss the target consumers. That is to say, this section should discuss market research. In other words, what is the size of the market and an outline about the audience that the retailers are aiming to target? Further, retailers should mention the research that they have done in terms of the market. For example, how huge the market is that is selling similar markets. Also, which areas have the highest number of audience that has to be targeted? Further, this section must also mention the competitors and their progress.

Therefore based on this research, retailers will be able to forecast the market demands and future. Also, customer information is of prime importance. That is to say, their age, gender, income, living standard, etc. Moreover, understanding the psyche of the customers is also important. For instance, their needs and demands.    

Marketing Strategy in Retail Business Plan

This section of the retail business plan should include the way retailers plan to market their products. Firstly retailers should know well what is their status and position in the market. Secondly, they need to discuss how they are unique from the rest of the market. Further, what strategy they plan to implement and how are they going to implement it. Moreover, retailers need to discuss the pricing and promotional strategy in this section.     

Management Plan

Now comes the section where business owners need to discuss their management plan. This section of the retail business plan includes all the necessary management details such as the number of employees, the implementation of the management plan, the team that retailers intend to hire. In addition to this, the details regarding the entire staffing section should be discussed.

Finances

Last, of all, the financial structure of the retail business plan should be discussed in this section. It is certainly one of the most significant parts of business owners. This part should include the following details:

• How much the company intends to earn over a specific period of time
• The money required at the start of the business
• Where the capital should be spent
• What the company expenses shall be
• Predict sales forecasts
• Forecast cash flow and plan further accordingly

Conclusion

Having a business requires effort and struggle to implement it. That is to say, there is a lot of research that retailers need to do before they even plan to start a business. But, if the planning is done the right way, it can do wonders for business owners. To conclude, a well prepared and developed retail business plan is clear and effective. Therefore it can immensely help business owners in the future.