There is no doubt that consumer behaviours have shifted during the pandemic, meaning that it can’t simply be business as usual, especially not for the retail industry.
“To maximise opportunities for growth during this next normal, retailers need to refresh their approach for how consumers will shop and look at new and creative merchandising and pricing strategies,” says Timo Hansen, Head of Credit at Capital Connect.
Hansen highlights some of these refreshing opportunities that can ensure retail businesses thrive this year:
1. Omni-channel shopping: While online shopping has grown dramatically over the past two and a half years, it is the combination of online and bricks-and-mortar trade that gives the best results. Retailers that offer customers a choice of channels and deliver consistent experiences at each touchpoint will be the big winners this year. Home deliveries, click-and-collect and ecommerce are all great growth opportunities in a changing market.
2. Food and coffee facilities: Give consumers more reason to visit and linger by offering coffee and meals in store. Retailers could offer take-aways, or create a space where browsers can sit to use a Wi-Fi network. It’s a wonderful way to attract customers during periods of Eskom load shedding.
3. Bulk buying: Now is a great time to buy stock in bulk at discount rates. Retailers could either offer discounts to price sensitive end-customers to drive volumes or sell goods at higher margins to increase profits.
4. Store revamps: With shoppers getting out and about again, now is an ideal time for retailers to freshen up their store’s look and feel to attract more foot-traffic and grow revenue. Retail stores may expect a spike of more than 10% in turnover following a renovation.
5. Destination shopping: To attract the online shopper to their physical stores, retailers need to offer experiences that can’t be replicated in digital channels. They should capitalise on all the senses – see, smell, taste, touch, feel. Offer DIY workshops, demos, and the opportunity to get hands-on with the product. Hardware stores for example can offer in-store workshops to show customers how to lay laminate flooring, or a soft toy shop can offer a ‘stuff your favourite toy’ workshop to lure more shoppers.
“And when it comes to implementing these opportunities, access to quick hassle-free business funding is available to retail business owners. Alternative business funding options, like those offered by Capital Connect, provide retailers with easy access to growth capital with flexible and attractive terms,” adds Hansen.
Retailers can access short term, unsecured capital of up to R2.5 million* in 24 hours to ensure that they don’t lose out on business opportunities. They simply log into an app to Click & Borrow and the funds will appear in their bank account by the next day, or the same day.
“While business funding is readily available, it’s up to each retailer to think about how to grow, boost its retail business and outsmart its competition,” concludes Hansen.