Retail surgery: How can retailers condition their stores for success?

Online retail may be stealing market share but the bulk of sales are still made in bricks-and-mortar stores. As delivery costs for online orders increase, the importance of physical stores to the overall equation of profitable sales has never been higher.

Craig Sears-Black, UK managing director at supply chain firm Manhattan Associates, says: “The store itself creates the conditions for a sale. The experience that consumers can be given in stores is more immersive, tactile and engaging.

“These more emotional connections can lead to immediate sales, and long-term loyalty.”

They are the result of a complex, scientific process. Understanding the science of shopping is fundamental to continued success.

“The first step to boosting the in-store experience involves a decentralisation of the distribution process,” says Sears-Black.

“By diffusing control of distribution and inventory throughout the whole organisation the fulfilment experience for the customer becomes a positive one. Store associates now have a clear view of stock across the entire network. This, combined with access to shopper buying histories, allows assistants to personalise in-store experiences and sell stock wherever it is in the network, not just what is in stores. Time-to-fulfilment is inversely proportional to success when it comes to customer satisfaction,” Sears-Black states.

Complex algorithms are needed to handle the increasing volume of ifs, whens and buts that occur naturally in the sale-to-fulfilment process. The approach of decentralised distribution, getting more from the stores and a reassessed profitability equation will help to ensure success.