Page 13 - Logistics News - September October 2023

R E TA I L

This evolution is not plain sailing, though, due to their be easier to come by versus pure-play retailers. Capital should
systems, processes and culture set up to serve their stores be redirected into online commerce projects, carefully balancing
effectively. Mindsets needed a major shift from the C-suit to the the needs of stores.
fulfilment staff.
Brand and product allegiance: Retailers should leverage the
So, how do brick-and-mortar retailers compete with their power of their brand support to drive their customer retention,
pure-play competitors? whether online or in-store. Marketing plays a key role in making
Leverage store inventory by fulfilling from the store: customers feel like they are engaging with a familiar brand and
One of the obvious dilemmas traditional retail faces relates transaction process across channels. If the retailer has a social
to the use of its store inventory to fulfil online customer media following or a credit base, this should be used to establish
orders. Conceptually, this seems to be all too obvious. a strong relationship. Use the voice of the customer (VoC)
However, there are many deciding factors on how best to data to determine critical touchpoints and improve customer
implement this. Depending on store locations in relation engagement.
to customer delivery points, size of the store, size of the
basket and where its offer lies on the commodity-fashion Develop an agile, innovative mindset: To counteract the
continuum will influence the optimal solution. The use of corporate internal silo problem slowing down decision-making,
statistics and operations research assists retail supply an innovative mindset needs to be part of the culture. Data-
chain managers in determining the best option. If done driven analysis and decision-making will develop an agile supply
correctly, this could be a huge competitive advantage and chain environment, resulting in the business becoming more
one that the pure-play retailers are not able to use. The responsive.
pure players likely see this as a substantial threat to their
business. Takeaway
The retail landscape is going through a paradigm shift not seen
Access to capital: Traditional retailers would likely have before. Customers have more choices than they have ever had
more access to capital. The reason is that they have a history and competition between retailers is higher than it’s ever been.
of generating revenue and have had the ability to build up Successful multichannel retail requires a carefully thought out
reserves versus their pure-play counterparts who are generally plan, delivering the digital and in-store experiences consumers
in start-up mode requiring funding from investors. Although the actually want versus the ones retailers think they want. It
capital would still need to be used for store developments and requires significant investment in systems, people and fulfilment
other related items that pure-plays don’t have, funding should solutions. Market share and survival are on the line. •

www .l o g ist i csn e w s .c o .z a SEP T E MB E R/O CT O B E R 2023 11