Fresh - The Newest Ideas In Retail Decision Making - March 2015



A recent study by the CFI Group shows that an increasing number of consumers prefer ordering merchandise online and picking it up from the store at their convenience. As many as 78 percent of the respondents said that the grab-and-go model allowed flexibility and therefore a better shopping experience.

However, retailers have not found this to be a convenient option as figuring out the logistics in such a model can be tedious. Most retailers believe that in-store pickups requires them to have access to the entire inventory in order to inform the customer accurately about the availability of a product, though experts say otherwise.

The idea is to get the customers to complete an online order and bring them to the store so as to drive sales in both channels. Stores normally keep multiple units of certain items in stock. Instead of installing systems that keep track of what is in stock, retailers must focus on building an in-store pickup service with products that are normally in high demand. Not only does this avoid the need for a complex inventory management system, but also keeps it simple and puts consumers right in an environment where they are highly likely to buy more products.

In-store pickups come with a wide range of other benefits too. They are faster, cheaper and do not require the customers to pay for shipping charges or wait for the product to be delivered. Retailers could also get proactive and incentivize in-store pickup with exciting offers. With online shopping, retailers already have the contact details of their customers, and when these customers pick up the products from the store, retailers know who their customers are and can therefore tailor their offers and promotions in order to target these customers.

But the responsibility of implementing ‘grab and go’ doesn’t just end here for retailers. Retailers must also train their associates to provide an interactive and pleasant experience inside the store and build a strong relationship with the customers. The final objective is to use the online medium to attract an audience and get them to come down to the store to shop so that retailers are confident that the customers will visit the store to complete the purchase.


Happy Retailing
Team Fresh
 
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