The medium sized retail outlet today is steadily losing sales owing to competition, unmanaged inventory and an apathetic customer base.
• Medium to large retailers and supermarkets find themselves losing revenues against widely available product lines to stores with faster check outs.
• Frustrated customers move to stores with purchase transaction times that are even 2-5 seconds lower per item!
Surprisingly, in the retail supermarket operation where the business sees a high volume of regular buyers due to factors such as locational advantages, the buyer continues to be a relatively fickle customer, exhibiting lower loyalty than he does for the brand of goods he buys. Convenience and price points easily lure the consumer away to other stores, reducing the retail store to little more than a purchase point for his favorite brands. But where’s that ‘favorite store’?
Tapping periodic purchasing by regular customers instead of cyclic purchasing alone, can do anything between doubling/ quadrupling a superstore’s turnover. Additionally, although most superstores rely on higher margin sales, the stores have insufficient customer information, or the means to communicate promotional or seasonal discounts on high ticket, high margin items to regular customers because of the fast paced store environment.
So how does one get that high value, high margin and slow moving stock to sell faster?