Opening a retail store is a huge undertaking, especially for new retailers. Despite the seeming simplicity of business strategy, running a retail store involves a lot more than most people realize. Your success depends on many factors, from your marketing skills and consumer confidence to rising rents and high employee salaries.
On the other hand, now is the best time to be in retail. As we emerge from the Covid-19 pandemic, retail is growing at levels not seen in over two decades. In 2020, retail sales increased by 7%, while in 2021 the industry recorded sales growth of over 14%. This year, NRF predicts sales will reach over $4.9 trillion.
So what can you do to succeed in retail? The following 5 insider tips will provide an answer to that question and help set you up for long-term success.
If you want to attract new customers, the first thing you need to do is provide them with a consistent quality experience, wherever they interact with your brand.
This means creating eye-catching storefronts that entice shoppers to enter and intrigue them once they arrive. It also means investing in a website that reflects a high-quality experience. Your website should include directions, hours of operation, and what customers can expect when they visit your store.
Having a blog that continues to help your customers get the most out of the products you sell can also help you reach new customers. Finally, be sure to build a strong presence on social media platforms, with a particular focus on Facebook and Instagram.
Consider purchasing online business insurance to protect your retail business against liabilities such as property damage, customer slips and falls, employee injuries, and theft. Stores that have experienced issues like these might find how important it is to have the right insurance coverage.
Examples of businesses that should have retail insurance include clothing and clothing stores, e-commerce stores, florists, jewelry stores, pet stores, grocery and liquor stores, etc.
The price of your retail insurance policy is determined by the particular characteristics of your business, including its location, building, employees and personal assets, among others.
If you think small and aim to keep costs to a minimum, your small business will stay small. However, if you pay your employees more, they are more likely to perform at their best and help you grow your retail business.
Stores with higher pay and more full-time employees reduced sales and increased profits. Ask yourself if it’s worth compromising your store’s ability to deliver an exceptional customer experience by hiring someone who will work for the lowest salary.
Inventory management is an important aspect of being a successful retailer. It’s hard to determine how well your store is performing or make precise adjustments without tracking what’s selling and what’s not, profit margin, and average revenue.
Tracking inventory can be done manually, but using inventory management software can provide a real-time view of what you have in stock, allowing you to streamline your processes and increase your efficiency.
It’s hard to get someone past your store’s door – and you already know that the vast majority of those who walk in leave without opening their wallets. But why should you let them go without even trying to hire them?
If they buy from you, be sure to collect their email address as soon as possible. Even if they don’t, you can still encourage them to share their information. Retailers these days have incredible opportunities to engage with customers, whether through social media, email, loyalty programs, contests, and more, and increase your chances to sell your products in the future.
Even if things are going well for your retail business, rather than accepting the status quo, be sure to track the short and long term performance of your business and keep looking for ways to grow and improve. With strategic preparation, time-saving tools, and a willingness to adapt, you’ll be well-equipped to make your retail business a success.