How digital solutions can help brick-and-mortar retailers compete against online stores.
Summary
Retail faces many challenges, including the threat of platforms and other business models, as well as the problem of limited shelf space or lack of assortment depth. One potential solution is to provide customers with a seamless on- and offline experience through technology such as virtual shelf extension and data collection.
The challenge
In recent years, retailers have faced increased challenges. These include not only competition from platforms, which leads to lost sales and customers, but also alternative business models such as Amazon Style with networked fitting rooms, digital try-ons like at Mr. Spex, or digital showrooms like Eco. These offerings are now firmly established and represent significant competition.
Another difficulty for retailers is that competitors like Amazon are able to generate additional revenue through complementary offerings, such as Amazon Prime Music, that are not available to traditional retailers.
A practical example: The customer is looking for a certain wine on the grocer’s shelves and cannot find it. Result – He orders the wine from an online retailer like Amazon, which offers it and even delivers it the next day. As a result, brick-and-mortar retailers lose not only product sales, but possibly even the entire customer base. In the future, he may no longer visit the store at all, but order directly online.
As a rule, it is difficult for the retailer to know whether the customer’s search query is
could successfully complete or not due to lack of data collection capabilities. In contrast, online retailers can capture all relevant information immediately and thus make optimal decisions regarding their product range and better understand customer needs.
To remain competitive, it is therefore essential that retailers develop new business models and implement them.
The solution / the procedure
Liquam supports retailers in recognizing problems and identifying causes by means of a potential analysis. On this basis, the retailer can make an informed decision about whether and in what way to make adjustments. Thus, he can either operate independently or team up with an experienced business partner like Liquam to get professional support in implementing his plans.
receive If the decision is made in favor of Liquam, individual concepts can be developed together in order to achieve an optimal adaptation to the needs of the end customers and thus an increase in sales.
One possible solution in this case is to dovetail online and offline sales channels by means of a virtual shelf extension (Endless Aisle), which enables customers to obtain all products in-store without needing another source.
The result
One option for implementing a virtual shelf extension is to make tablets available to customers and employees or to refer them to a corresponding app. With the help of this measure, relevant data can be collected and the assortment can be optimized on site.
However, it is difficult to win back customers who have already learned that certain products are not available in brick-and-mortar stores and shop directly online. It is therefore of great importance that the retailer engages in targeted online advertising, for example through Google Ads, in order to draw customers’ attention to the offer and retain them in the long term.
Expanding the offering can ensure that customers remain loyal to the retailer, thus avoiding a potential loss of sales.
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