Retail is changing faster than ever, but the importance of fundamentals still holds true.
As the list of victims of what many are calling the 2017 “Retail Apocalypse” continues to grow, retailers and manufactures find themselves scrambling for answers in a fast-changing landscape. According to a Pew Research survey, roughly eight in ten Americans are now online shoppers, and 15% buy online weekly. Many brick and mortar retailers attempt to combat this shift by investing in revitalizing the shopping experience with new store layouts and expanding assortments. However, many overlook one of the biggest brick-and-mortar basics: ensuring products are in-stock and on the shelf.
Minimizing out-of-stocks and maximizing on-shelf availability is an attainable goal that is becoming increasingly lost in the shuffle at retail. According to the Path to Purchase Institute, some estimate that nearly 10% of sales are lost due to out-of-stocks. For retailers and the manufacturers selling products in their stores, this amounts to billions of dollars each year.
According to Retail Dive, 62% of shoppers still choose to purchase in retail stores over e-commerce so they can see, touch, feel and try out items. In addition, 49% of consumers say they choose stores over the web because they want to take items home immediately. Clearly, consumers still appreciate the tangibility and immediacy brick and mortar stores offer, but they can’t get that if the product is stuck in the backroom. They’re also unlikely to purchase if the product is priced incorrectly or is on an unappealing, unmaintained display.
A solution for manufacturers.
Job one is getting back to basics through effective merchandising. By focusing on driving efficiencies with improved supply chain practices, new technologies, and tailored merchandising programs, retailers, manufacturers and consumers win. Effective displays, organized products and stocked shelves draw consumers to products, bringing them ever closer to picking it up and taking it home, fulfilling their expectation for immediacy.
Leveraging an experienced merchandising partner with scale and expertise can help eliminate these holes. If your partner is nimble enough to anticipate and adapt to the changing landscape, tailors merchandising strategies based on your specific retail needs, and has the infrastructure to propel your brand to new heights, your product will thrive in brick-and-mortar stores.
For over 30 years, Premium has been that partner for some of the most iconic brands in retail.