The retail industry is an increasingly competitive place, whether online or on the high street. Although promotional activities and flash sales have helped retailers boost bottom lines in recent months, in a climate of tough trading it’s important that retailers go back to basics and re-evaluate core aspects of their business operations. For example, what to do if a customer cannot find the product they want in-store – eCommerce solutions offer retailers the opportunity to ensure this sale is not lost.

Losing more than just a sale

According to consumer research we commissioned earlier this year, high street retailers could be losing as much as £781.5 million in missed sales every month, due to poor stock management and no available alternatives for the consumer to make a purchase. The research, commissioned through YouGov, polled a representative sample of 2,043 UK adults and revealed that 38 per cent of consumers left stores empty handed within the last month. This was due to items either not being in stock or unavailable in the right size, colour, or style – resulting in a loss of approximately £43 worth of sales every month for each adult in the UK.

In an increasingly competitive marketplace, maintaining customer loyalty has become important for retailers in order to stay ahead of competitors. However, these missed sales opportunities don’t just have a financial impact on retailers, but also an effect on the long-term brand loyalty of consumers. The equivalent of 2 million UK shoppers, 4% of those surveyed, stated that they would stop shopping with retailers permanently if they repeatedly fail to provide the items they are looking for in-store. This figure rose to one fifth of 18-24 year olds surveyed, meaning that retailers risk losing customers for good, and younger consumers in particular are growing up expecting alternatives to be available.

Ensuring shoppers can make their purchase

The report also found that over a third (38 per cent) of shoppers would automatically look for the products they wanted on a retailer’s website if they are not available in bricks and mortar stores – highlighting the importance of having an online store too. For high street retailers to prevent this loss of sales, they need to embrace technology and allow customers to make a purchase in-store, whether the product they’re looking for is in stock or not.

The future of retail lies in “connected” stores, where shoppers will have access to free Wi-Fi, kiosks, sales assisted devices and smartphone scanning. All of these services put the power of the sale in the hands of the consumer, who can still buy the products they want from the retailer of their choice before leaving the store, even when items are not immediately available. Maintaining accurate stock levels will continue to be a constant challenge for retailers, but businesses can avoid these lost sales by embracing technologies that are already readily available. Whether the consumer is in-store or shopping online at home, a strong eCommerce offering can rescue what would otherwise be lost revenue.

 

By Eric Abensur, CEO of Venda.

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