How can American retailers break through? Four key areas cannot be ignored

As the consumer shift toward online shopping and digital channels continues , retailers must prioritize several key areas in order to continue to thrive after the pandemic.

1. Provide flexible delivery methods

To adapt to new consumer demands throughout the pandemic, retailers must pay special attention to contactless delivery methods such as BOPIS (buy online, pick up in store) and curbside pickup. This not only provides consumers with a safe way to get their items, but also adds convenience to their daily lives.

In fact, BOPIS or curbside pickup is the preferred pickup method for many consumers across a variety of product categories , especially for household essentials and apparel essentials . Retailers must continue to expand delivery options, offering curbside pickup , BOPIS, and same-day delivery, while also improving efficiency.

2. Re- arrange the store

Target has been able to achieve best-in-class profitability (twice that of its competitors) in part by fulfilling 80% to 90% of online orders through their stores . The pandemic has also validated the idea that both the number of stores and the configuration of those stores must be rethought.

Some retailers believe they need fewer, larger stores with richer in-store experiences and dedicated micro-warehousing areas. Loblaws, a leading grocer in Canada, has also invested in local and micro-delivery for its grocery business, and other companies such as Target are opening smaller stores in urban areas.

3. Improve profitability

Retailers are increasingly realizing that while they can sell effectively through e-commerce, it is much more difficult to generate profits.

Therefore , retailers should invest in customer data and cut marketing costs . At the same time, retailers are making significant new investments in supply chain and delivery channels and technologies to reduce transportation costs, return rates and inventory holding costs. For example, Walmart and Target recently announced major supply chain investments.

4. Improve data insights

As consumers shift to online shopping, retailers have access to more data than ever before, giving them the opportunity to build stronger relationships with customers and generate more revenue. Most large, sophisticated retailers are using increased insights into consumer data to create more personalized experiences and products.

Therefore, for retailers , in-depth understanding of consumer needs and insights into consumer-related data will help them establish lasting relationships with consumers and thus enhance their competitiveness .

The entire retail industry has undergone tremendous changes in 2020. Only through the right strategic investments and continuous exploration of new consumer demands can retailers prepare for the pandemic .

Retailers

USA

E-commerce