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What Retailers Must Do to Keep Up with the " Big-Box Boom "
George Pepes , APAC Vertical Solutions Lead , Healthcare and Retail , Zebra Technologies
The pandemic has changed the retail experience , with the maturation of e-commerce perhaps the most obvious .
City lockdowns and social distancing measures during the pandemic literally accelerated the usage of e-commerce .
As a result , big-box brands saw sales skyrocket to record levels . While many expected the lift to subside once physical stores reopened , it seems pandemic shopping behaviors will remain . In the Philippines , e-commerce is expected to continue growing at a CAGR of 14.1 % from 2023 to 2028 .
People still want to one-stop shop , and click-and-collect options remain popular . However , more consumers are now willing to go inside stores – especially if they offer some degree of experiential merchandising . A good example is the Power Plant Mall , which enhances the shopping experience through interactive product displays involving the five senses .
This means retailers will once again have to reboot processes and redesign operations , and they know it . In Zebra Technologies ’ 15th Annual Global Shopper Study , shoppers surveyed say that they choose shopping online or in-store for the same reasons – availability , selection and price . They prefer retailers that offer easy returns ( 80 %), allow them to get in and out of a store quickly ( 76 %), and offer order delivery to home ( 75 %). They are also taking advantage of alternative pickup and delivery options : 34 % of shoppers surveyed have opted for buy online , pick up in store ( BOPIS ), or buy in store and shop to home , with about 90 % saying they will likely continue to use these services .
So , how do retailers make that happen ?
CREATE MORE SPACE ( WITHOUT MORE SQUARE FOOTAGE )
Retailers should convert store space into dedicated areas for order pickups and returns .
Shoppers prefer retailers that offer easy returns , yet associates and decision-makers say it is getting harder to handle online returns and pickups in the store . With BOPIS options helping to drive consumer preference for retailers – and shoppers saying they must be able to get in and out of stores quickly – it is time to tear down some walls , or perhaps put some up . Installing pickup lockers and mobile workstations to manage returns can help improve traffic flow and associates ’ workflows .
CLOSE TECHNOLOGY GAPS
With the imbalance between labor and consumer demand , retailers should augment and automate processes where they can . Radio frequency identification ( RFID ) readers like Zebra ’ s FX7500 Fixed Reader , AN720 , AN510 , and AN440 RFID Antennas , can help track inventory through supply chains and stores , while electronic shelf labels can enable back-office staff to manage front-of-store item pricing . Both prescriptive analytics and intelligent automation solutions can help monitor for store issues and alert associates to those requiring immediate attention . Kiosks and other self-service technologies can give shoppers more independence in managing pickups , returns , and in-store ordering of out-of-stock items .
REVAMP WAREHOUSE STRATEGIES
Inventory planning tools that leverage artificial intelligence and machine learning can help with replenishment and safety stock decisions . Further , workforce management software can ensure warehouse labor schedules are properly aligned with both in-store and online order fulfillment demands . In today ’ s world , it is important to be equipped with the right technology to retain customer loyalty and cater to their needs . You might be surprised to learn 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 .
To learn more about the technologies that can help retailers capitalize on the big-box boom , visit this virtual store experience .
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