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Capitalizing onthe “ Big-Box Boom ”
By George Pepes , APAC Vertical Solutions Lead , Zebra Technologies
For the past two years , the pandemic has halted the Philippines ’ long-standing economic robustness with its imposition of one of the world ’ s longest and strictest lockdown periods . But as the situation has improved , more retail establishments have since been allowed to resume operations , leaving retailers rushing to figure out how to accommodate a new mix of customer expectations .
Shoppers settle into their new normal
The pandemic has vastly changed the retail experience , with the maturation of e-commerce perhaps the most obvious . Hard-core social distancing measures have given rise to one-stop shopping . In the Philippines , a study by Rakuten Insight found that 63 % of consumers now shop both online and in physical stores because of habits and preferences acquired during the pandemic .
As a result , big-box brands have seen sales rise in popularity . While this increase has been sustained for several quarters , some market watchers expected it to fall once fashion retailers , boutiques , and specialty stores fully reopened . But it seems pandemic shopping behaviors are here to stay .
One-stop shopping and click-and-collect options continue to remain popular . But consumers seem more willing to shop at physical stores – assuming they offer some form of experiential merchandising .
In other words , retailers will have to reboot processes and redesign operations – and they know it . According to Zebra Technologies ’ 14th Annual Global Shopper Study , decision-makers are looking to combine in-store and online channels to cater to the “ on demand ” shopper mindset . Here are some ways to make that happen in your stores :
Create more space without expanding your existing store Around 30 % of retailers surveyed are currently converting their store space into dedicated areas for order pickups and returns . Meanwhile , almost 80 % of shoppers surveyed prefer visiting retailers that offer easy returns . However , store associates and decision-makers surveyed have admitted finding it hard to handle online returns and pickups in the store . With click-and-collect options helping to drive consumer preference for retailers , and around 75 % of shoppers wanting to get in and out of stores quickly , retailers can perhaps consider the installation of pickup lockers and mobile workstations to manage returns . This can possibly help improve traffic flow and store associates ’ workflows .
Filling up technology gaps
With the imbalance between labor and consumer demand , it is important for retailers to augment and automate processes where they can . Radio frequency identification ( RFID ) readers will prove key in helping to track inventory through supply chains and stores , while electronic shelf labels are best if you want to enable back-office staff to manage front-of-store item pricing . Advanced technologies like prescriptive analytics can help monitor for store issues and alert associates to those requiring immediate attention . Kiosks and other self-service technologies can empower shoppers with more independence in managing pickups , returns , and in-store ordering of out-of-stock items .
Revising warehouse strategies
Inventory planning tools powered by artificial intelligence and machine learning can help with replenishment and safety stock decisions . And workforce management software can ensure warehouse labor schedules are properly aligned with both store and online order fulfillment demands .
It ’ s easier to lose customer loyalty than to earn it these days , so it is paramount for retailers to refine their operations to withstand the challenges . You will probably be surprised to learn that technologies once deemed too complex or expensive are among the easiest and most affordable to implement – and the ones that will instantly improve store and supply chain execution , making the retail experience more elegant and frictionless for shoppers .
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