One of the best ways to avoid common problems with retail stores is to be proactive. While many issues within a business aren’t visible right away, warning signs often come months, or even years, in advance. As a result, retailers must constantly monitor every aspect of their business to spot any potential problems before they become too large.
Unhelpful store associates
Unhelpful store associates can drive customers away from a store. Fortunately, there are many ways to deal with this problem. One of the best ways is to role-play situations with your associates. This can be done during off-peak hours during which employees are free. If possible, use a realistic scenario, and make sure your associates learn from their mistakes and successes. In particular, try calling out positive communication and call out negative communication if you see it happening.
Another way to deal with unhelpful store associates is to follow the New Retail Playbook. It outlines guidelines to help customers and build trust. This can be particularly helpful in cases when associates are helping customers with their shopping experience. For example, if a customer needs a shoe size adjustment, an associate can help them by asking questions about the size of the shoe.
Poor handling of inventory
Poor handling of inventory in retail store site selection can be detrimental to the business. It can result in stockouts and bloated inventory, which can lead to lost customers. Accurate inventory reports help businesses better predict demand and order products accordingly. These reports also help businesses manage their budget. When a store’s inventory is poorly managed, it can also lead to unsafe or expired goods.
Many businesses make inventory management mistakes, which are easily avoidable. In order to prevent such mistakes, a business should first determine its current situation and then make necessary improvements. Neglecting inventory management can lead to serious financial losses and can put the business out of business. To avoid such costly mistakes, retailers should focus on categorization and storage efficiency.
Regardless of the size of a retail business, a mishandling of inventory can severely impact the bottom line. Inefficient inventory management can lead to stockouts, which can cost a company millions of dollars. It can also negatively impact a company’s brand. In addition to destroying the company’s reputation, improper inventory management can cause a drop in stock prices and even lead to bankruptcy. This can make it difficult for a company to reach its long-term goals.
Improper inventory management is one of the top reasons why small businesses fail. The goal is to maintain a balance between carrying too little inventory and too much. However, the exact number of items that are “just right” is a moving target. Demand for different SKUs changes year-round and over the course of several years.
Unhelpful staff
Unhelpful staff can be a very frustrating experience for a shopper. They can behave in irrational ways, such as leaving the dressing room messy and placing unwanted items on the wrong shelves. Others can ignore customers at the checkout or arrive at the store just before closing time.
Quality of service is key to success in the retail industry, and disengaged staff can cause a great deal of damage to your brand. Studies show that 32% of consumers will not shop with a brand after a negative experience, and they may even post negative reviews on social media. Luckily, there are many steps that retailers can take to ensure that their employees are engaged and happy with their jobs. Improving employee engagement and job satisfaction can improve both customer service and productivity.
Lack of in-stock inventory
Lack of in-stock inventory is one of the biggest challenges facing retail stores. In the US, on average, 8% of merchandise is out of stock, which is far more than pre-pandemic levels. Retailers must make sure that their customers get the products they ordered. Out-of-stocks are one of the biggest reasons for stockouts, and retailers must take steps to ensure that they have enough products to meet demand.
Regardless of whether you run a physical store or online, overstock can negatively impact your business. Each item in inventory represents an expense on your store’s balance sheet. That money cannot be invested in marketing campaigns or store remodels, so it is vital to keep inventory lean to remain competitive with online sellers.
Fortunately, out-of-stocks can be minimized by implementing best-in-class retail practices. These practices can increase inventory turnover, improve customer satisfaction, and channel working capital into strategic initiatives. Ultimately, these measures can make your business more profitable and enhance your bottom line.
When consumers notice that an item they are looking for is out of stock, they will move on to another store. In some cases, they will even look to competitors. In other cases, they may wait for a back-in-stock alert or buy something else. Regardless of the case, out-of-stock inventory is frustrating for both you and your customers.
One of the major causes of stockouts is data inaccuracies. These errors can result from human error, shipment discrepancies, and shrinkage. Human error is the most common cause of mistakes when it comes to inventory management. However, a lack of data about inventory turnover and purchase sales can also result in stockouts. While stockouts aren’t always preventable, they are a costly problem for retailers and suppliers. To solve this problem, businesses must implement an effective inventory management system.
Unhelpful schedule
Having an unhelpful schedule can be costly for retailers. Just-in-time scheduling can reduce labor costs while increasing efficiency. However, prior studies show that just-in-time scheduling also has hidden costs for retailers. One such example is Gap Inc., which improved the quality of its schedules in 2015 and 2016. As a result, the company was able to increase productivity and profits. New research explains the mechanisms behind these results.
