Source: https://www.retaildive.com

A return to brick-and-mortar locations is pushing retailers to be innovative as they juggle customer experience with labor efficiency.

 

With the wave of COVID-19 pandemic restrictions and store closures at its end, 2022 has largely meant a return to brick-and-mortar retail.

Given the pullback in e-commerce spend and retailers losing sales amid inflationary pressures, overall technology budgets might not be at the height they once were. This leaves in-store innovation in a predicament.

Global retail technology investment dropped 43% to $13.2 billion in Q2 2022 compared to about $23 billion in Q1 2022, according to a report from CB Insights in July. Additionally, retail tech deals were down 21% quarter over quarter, and only seven companies went public compared to 11 in the previous quarter.

However, in-store technology and innovation aren’t exactly dead. Shoppers may have eased their online buying habits to a degree, but brick-and-mortar stores aren’t immune to the longevity of digital transformation. In fact, the store management technology sector saw an increase in funding during Q2 with a 25% quarter-over-quarter bump to $3 billion compared to $2.4 billion in Q1, according to CB Insights.

Retailers can still benefit from innovating with convenience and might want to look at in-store personalization to differentiate themselves in the market, according to a Deloitte report from Rob Harrold and Adam York.

What types of technology brought convenience and personalization to the in-store experience this year? And which ones have the potential to stick around?

 

1. BOPIS

Buy online, pick up in store services continue to be sought after even as pandemic restrictions have waned. In March, data from Insider Intelligence predicted that U.S. shoppers will spend $95.87 million on BOPIS this year — a 19.4% increase year over year.

BOPIS, which is sometimes known as click and collect, seemed like a win-win during pandemic restrictions, as shoppers could support physical brick-and-mortar stores without having to spend time in closed public spaces.

The holidays have the potential to show BOPIS’ strength. This season 39% of shoppers expect BOPIS to account for 50% or more of their shopping, according to a report by Bluedot shared with Retail Dive.

That said, overall interest has somewhat decreased since 2020. About 78% of shoppers plan to use BOPIS in some regard this season, which is down slightly from 81% in 2020, according to Bluedot.

Not all consumers are more likely to use the option though. Millennial males in urban environments are more likely to use BOPIS, according to data from Morning Consult. Shoppers in higher-income households are also more inclined to use this purchasing option.

While several retailers added BOPIS and have reported positive results from the service — including Target, Sally Beauty and Office Depot — others are just now jumping on board. Five Below last month released its own buy online, pick up in store program.

BOPIS requires technology or a system that makes it efficient and successful for all parties involved, which is something many retailers are focused on.

Retailers are “starting to think about productivity, efficiency and cost that is top of mind for everybody,” Lokesh Ohri, a principal in Deloitte’s digital practice, told Retail Dive. “Buy online, pickup in store and all the tech involved around doing that efficiently at the store level, either picking front of house or backup backroom … has stuck around and is scaling pretty fast.”

 

2. QR codes

That weird little black-and-white square that looks like a Rorschach test? Yes, retailers — not just restaurants — are using those.

QR codes are square barcodes that can be scanned using mobile phone cameras to be directed to more information or payment portals. The technology was actually invented decades ago, but quickly garnered adoption during the COVID-19 pandemic when menus and person-to-person payments were pushed aside.

“It’s become ubiquitous in the market,” Ohri said. “But if you and I were speaking seven years ago, there wasn’t this big hype about QR codes.”

QR codes have the potential to be a way in which customers can discover more information about a product, according to Ohri, who added it “gives them better insights into buying that product, into making that decision and into comparing information across other products.”

In January, Walmart launched an interactive store prototype at its incubator location in Arkansas that featured QR codes along with other in-store technology to help “create opportunities for digital exploration,” the company said at the time. Instacart last month began rolling out QR codes as part of an expanded connected technology suite of products with partner retailers. Additionally, Amazon included the technology in its first fashion retail location this May, where the codes provide more information on sizes and reviews.

EThese cases show that QR codes can deliver personalization for shoppers who might want recommendations based on what they’re inquiring about, but also create a level of convenience for associates who can spend more of their time on operational tasks.

 

3. Store operations

In line with Ohri’s belief that retailers are thinking more about efficiency and productivity, the technology behind store management and operations continues to grow.

That encompasses anything from technology that helps automate tasks — freeing up labor — to using more data-driven approaches to understanding stock levels.

The top equity deals in the retail store management sector for Q1 this year involved a $500 million deal for inventory optimization company Relex Solutions, according to another CB Insights from April. Retail unicorn Swiftly Systems — an e-commerce technology company now focusing on brick-and-mortar optimization — got its second $100 million investment in September. For Q2, a wholesale marketplace platform for retailers to connect with brands took the top spot in the quarter with $416 million.

Labor management is top of mind for everyone right now with the potential to use technology for cost savings, according to Ohri.

“They’re looking at labor management, communication, compliance store tasks, store audits, and using digital tools to simplify, as well as standardize those activities,” Ohri said. “So things that used to take 11 to 13 hours to do are now taking eight hours to do.”

A unique approach to store management technology is Lowe’s digital twin store. In September, the home improvement retailer announced it was experimenting with a digital replica of a store where associates can interact with and visualize store data. The concept was first introduced to two locations and allows associates to use augmented reality headsets for a variety of tasks, such as viewing items available on higher shelves instead of needing to climb a ladder.

 

4. Fitting room enhancements

Plenty of brands have experimented this year with enhancing the fitting room experience.

H&M started using a smart mirror in some COS stores in May, where customers can get personalized styling recommendations from the mirror as it senses what products — including their size and color — shoppers brought in. Customers can request new items to be sent to their dressing room without needing to leave the space. The retailer also started testing mirrors on the showroom floor that can assist with virtual try-ons, as well as returns.

Similarly, Savage x Fenty opened its first store in Las Vegas this January, which has fitting rooms with digital kiosks that shoppers can use to scan products to check prices and see similar items.

This approach might be considered a way to free up associate time. However, it might not be that simple despite its increased adoption.

“I don’t see virtual fitting rooms work as well as we can always want them to work,” Ohri said. “I find that anyone who’s ever deployed them … they will tell you that the number of associate activities actually didn’t go down. Because first, consumers need to learn how to use that tablet, because it’s usually not as intuitive. Second, they need help with the products that they have anyway. And third, they’re kind of really concerned about the data and the privacy. So it actually has increased associated tasks at store rather than reduce them.”

Inventory is one of the retailers’ most significant assets, so it should not be a surprise the number of resources dedicated and technology developed for its optimization, such as software, artificial intelligence, and machine learning tools for demand forecasting and supply chain optimization.

However, despite all these efforts and the growing sophistication of inventory management systems, there is still an Achilles heel that no retailer has been able to overcome: phantom inventory.

Phantom inventory refers to goods that appear in the inventory system but are not available for sale, either because they are lost in the back room, out of display in the store, or simply no longer physically exist.

Phantom inventory is exceptionally costly and significantly affects retailers’ bottom line, as it essentially prevents products from being available to customers. But that’s not all. Phantom inventory also hurts inventory management, demand forecasting, online sales, analysis, and decision-making capabilities, to name a few. This blog will present the consequences of having phantom inventory problems for retailers.

Loss of sale

Loss of sales is the most obvious effect of phantom inventory since you cannot sell a product that is not physically available to the customer.
Phantom inventory generates a decrease in shelf availability, making it impossible for customers to find the products they are looking for. Studies show that when a customer faces a stock-out, they may decide to substitute a similar item, switch brands, choose to shop at another store or abandon the purchase. Regardless of the decision, the retailer will be affected, receiving 2-3% direct sales losses depending on the category.

Inventory management

As we have seen, one of the origins of phantom inventory is the discrepancy between physical and system inventory levels. Let’s consider that according to the GS1 US Survey, the average retailer in the United States has an inventory pressure of only 63%. The chances of having phantom inventory are pretty high.
Beyond accuracy, phantom inventory generates a chain reaction, disrupting processes that originate from recorded data, such as automatic purchases based on reorder points. An imbalance between the two inventories (systemic and physical) can generate stock-outs when the lack of stock in the store is identified too late; or overstocking, in case the system has registered a lower quantity than the actual one.

Non-compliance in online sales:

The adoption of e-commerce is a reality that has accelerated in recent years, putting pressure on retailers facing the highest levels of competition.
Discrepancies between the systems and physical stock create havoc in meeting online demand.
According to Peoplevox’s E-Commerce Fulfilment Report, 34% of retailers have delayed the shipment of a purchase order because they mistakenly sold a product that was not in stock. Phantom inventory leads to accepting purchase orders that cannot be fulfilled because the inventory is not actually available in the store. If you don’t pay attention, this problem will only be identified when an operator notices that there is insufficient produce to fill the order. Thus, phantom inventory tricks retailers who find themselves unable to meet their customers’ expectations.

Poor information, analysis, and conclusions

The existence of phantom inventory is undoubtedly a problem of data, a discrepancy between physical stock and that recorded in the system. And as the saying goes: garbage in, garbage out. This means that when a retailer has a phantom inventory problem – and we have already established that it is very likely to have one – the analysis and conclusions drawn from this data will be compromised.
Phantom inventory can lead to misreporting sales under projections, leading the retailer to think that a promotion is not delivering the expected result, or a product was not as successful as thought. The sales team could be analyzing and concluding without knowing that the product was not in stock or that the promotion was never implemented because there was not enough merchandise, even leading to take actions in terms of product mix or promotional strategy.

On the other hand, incorrect inventory recording will affect the supply chain. Phantom inventory will distort sales, and consequent demand projections, since the system will show available stock that has not been sold when in fact, it is not displayed correctly or available for sale. Thus, the inaccuracy will be perpetuated in the future, affecting the following projections, sales plans, store performance measurements, and the replenishment system without even knowing it.

At Frogmi®, we know that phantom inventory is highly costly for retailers. Solving the complicated dilemma of keeping stock under control while delivering the best assortment and service level to customers is no easy task.
In our experience, an efficient solution to address phantom inventory is to support the operation with advanced analytics, artificial intelligence, and machine learning to identify deviations in product sales. Studying demand patterns at a granular level will make it possible to investigate the possibility of facing a case of phantom inventory. The information may be used to trigger alarms -or even better, targeted tasks- to perform a product’s field auditory and analysis.

Implementing these technologies together with a task manager at SKU level will improve inventory assertiveness, reduce stock-outs, ensure shelf availability, and consequently increase sales. Thus, retailers can begin to make decisions based on reliable information and improve their results by paying attention to the data and the in-store operation.

Let’s put ourselves in the following situation: an in-store walk-through.

The objective is to experience the store from the customer’s perspective to assess whether the standards defined by the company are met.

When walking down the aisles, it is impossible to avoid noticing empty shelves, locations that do not have enough stock, out-of-stock products generating dead areas, and others that cover more than the optimum, taking advantage of open spaces.

When checking the system, the inventory indicates that there is sufficient stock. Then, the replenishment of the product is coordinated since -theoretically- the backroom has enough inventory. It only needs to display it and make it available to customers.

However, the problem does not end there. When looking for the products, it is discovered that they are not there, there is no stock inside the store or in warehouses. This situation is called phantom inventory.

What is Phantom Inventory

Phantom inventory is inventory that does not exist in reality but appears to be in stock, like a ghost. Thus, the inventory system shows existing on-hand units, even though it is not actually in the warehouse or available on the shelf for the customer to see and buy.

These discrepancies between system information and reality can originate for several reasons, such as typing errors in the sale, carelessness in inventory receipt, and product shrinkage. But regardless of its origin, the detection and management of phantom inventory become complex since the system considers that the product is in stock, even though the store has no physical units.

The pain for retailers is evident when they believe that a product is available but – in reality – it is not, risking OOS and the associated loss of sales, as we saw in our previous blog. Another drawback of phantom inventory is its perpetuity. As the system indicates that the retailer has enough stock, the reorder point is never reached to restock, maintaining the situation over time. Thus, a pivotal act to break this vicious cycle is detecting signs of phantom inventory.

The symptoms of phantom inventory

To manage phantom inventory, the first step is to identify it and locate these gaps. However, as phantom inventory can originate for several reasons, it is difficult to detect the root cause for its management. That’s why retailers should focus on recognizing the visible symptoms, those that make the existence of phantom inventory evident.

One such symptom is stockouts. We have already seen that one way to recognize this symptom is to have eyes and hands in the store, spend time physically verifying where there are stockouts, and then check them against the system to identify an inconsistency in the inventory.

Considering that the average retailer handles around 16,000 SKUs simultaneously, this manual task can be challenging to tackle. In addition, it is clear that the larger the assortment, the greater the complexity of the job, making the management of phantom inventory uphill.

The second option for pinpointing symptoms of phantom inventory will be to rely on data analytics and artificial intelligence (A.I.) tools that can predict potential stock outs through analytical observation, identifying patterns and inconsistency in the data. There are three alerts that may suggest some deviation and phantom inventory risk.

1. Decrease in turnover: a decrease in the turnover of any SKU in respect to the normal or the projection.
2. Sales $0: the data shows that there are no product sales, despite having positive inventory. It can also be considered an alert when sales show anomalies concerning the demand projection.
3. Changes in sales trend: The sales pattern of a product changes abruptly, for no apparent reason.

One of the most significant advantages of using a data analysis system with A.I. and Machine Learning is that the algorithms refine the predictions as they are used. In this way, the alarms will become more and more accurate, improving the ability to diagnose phantom inventory.

What to do to treat your stores

Once the symptoms and products at risk of phantom inventory have been recognized, the hypothesis must be validated. Regardless of the method used (manual or through A.I.), a cross-check should be made between the system and total physical inventory (units displayed in the store plus backroom units). This evaluation will shed light on inventory disparities and where adjustments need to be made so that the system information reflects the store’s reality again.

At Frogmi, we know that managing phantom inventory is a complex process and one that must be performed constantly. Regardless of the methodology used to detect the problem, the solution involves manual in-store work to validate the possible inventory discrepancy. Our SKU-level task management solution is ideal for addressing this challenge from both methodologies, as it allows you to view information at the store-product level.

For example, a manual phantom inventory survey can be performed. One of the functions of Frogmi is the ability to generate tasks from a product (or the absence of it), which means that when stockouts are identified during a store walk-through, an automatic replenishment task can be created by simply scanning the product. If the area in charge of replenishment does not have enough units to replenish, a case of phantom inventory will have been found, enabling its immediate management.

On the other hand, if an A.I. system is used to alert phantom inventory, Frogmi can be easily integrated to generate automatic validation tasks specific to each store at SKU level. Thus, each store will have the opportunity to manage those products that behave atypically in sales or inventory turnover.

In our experience, the ideal plan of action is to use both tools simultaneously, facilitating the diagnosis of phantom inventory and decreasing the associated losses. This reaps the benefits of A.I. while empowering store personnel with self-management tools, improving inventory management, shelf availability, and, consequently, sales.

Covid-19 has brought to light the biggest challenge for retailers: maintaining stock and replenishing products inside stores in a scenario of highly volatile demand. Faced with this level of uncertainty, it became common to see images of supermarkets and stores with stocking problems, empty shelves, and dissatisfied customers.

The current context has put pressure on retailers, making it increasingly evident that to deliver the best service to customers and, consequently, avoid loss of sales, it is necessary to prevent stock problems.
To manage this challenge, the first step is to understand the problem and differentiate between two basic replenishment concepts: Out-Of-Stock (OOS) and On-Shelf Availability (OSA). Although both terms refer to supply and availability issues of a product in the store, they have significant differences to keep in mind.

• Out-Of-Stock (OOS): according to Thomas W. Gruen and Daniel Corstenen’s “Comprehensive Guide to Retail Out-of-Stock Reduction in the Fast-Moving Consumer Goods Industry”, there are several definitions for OOS and no general agreement in the industry. However, a globally accepted definition corresponds to the metric of when a retailer intends to have a product available for sale, but there are no physical units in the store. The stock level of the product in the store and back store is equal to zero.
• On-Shelf Availability (OSA): refers to the metric that describes when a retailer intends to have a product available for sale and the product is on the shelf for the customer. That is, when a consumer wants to buy, the product is available and exhibited within reach.

At first glance, OOS and OSA could be confused as the same concept. However, there is one key point that sets them apart: the attention on the customer experience. OOS puts the focus on the product and its level of inventory in the system. In contrast, when we talk about OSA, the focus is on availability to the customer. The discrepancy between the two terms and their perspective is evident when the product is in stock (stock greater than zero), but it is not correctly displayed for the consumer to purchase. This can happen for various reasons, such as damaged products, stock left in the back store, in the warehouse, located on the wrong shelf, or in a customer’s cart.

The effect of stock-outs

Let’s be clear: OOS and OSA problem is a waste of time, money, and energy for the retailer and the customer. But it also has a long-term implication. They both contribute to customers switching brands and retailers to meet their needs.

According to Efficient Consumer Response Europe (ECR Europe), when a consumer faces a stock-out on the shelf, they have several behavioral alternatives: buy another brand, change stores, delay the purchase, buy a smaller format, or simply abandon the purchase. On average, 21% of the time will decide to switch stores, while 9% will leave the store and abandon the purchase. According to a Grocery Manufacturers Association (GMA) study, these numbers are even more overwhelming in the U.S. market, where the decision to shop elsewhere rises to 31%. In other words, every time a customer faces a stock-out, the store perceives a direct loss with a 40% probability. If we also add the loss associated with selecting a smaller format (16%), retailers lose sales half the time a consumer faces an OSA.
But how frequent are in-store and on-shelf out of stocks? Studies show that retailers are far from delivering near-perfect fulfillment. OSA studies in Europe show an average stock-out rate of 7.1%. This figure exceeds 30% when it comes to promotional products. On the other hand, according to studies by the GMA, the OOS rate is around 8% in the United States, with no significant variations in recent years. Surprisingly, these figures show that, in practice, a customer will not find 1 out of every 12 items they intend to buy.

The level of OOS and OSA of a store has severe repercussions on service level and sales. According to the GMA study, an average retailer loses approximately 4% of sales due to stock-outs.

Using technology to support replenishment

At Frogmi, we know that making the distinction between OOS and OSA opens up a world of possibilities to improve stores’ compliance with stock levels. In fact, according to the ERC study, ensuring correct stock and shelf availability depends 85% of the time on internal store processes. Technology plays a fundamental role in having products permanently available, supporting the buying process, and increasing sales.

In our experience, the key point is the preventive and corrective identification of store and on-shelf stock-outs to activate the replenishment process.

Corrective identification refers to the ability of stores to discover when a product is not meeting the correct stock on display. On the other hand, preventive identification relies on statistical models and artificial intelligence (A.I.) to assess whether a product is out of stock or at risk of being out of stock.

Platforms such as Frogmi enable both sides of the replenishment process simultaneously: corrective and preventive. It provides new capabilities to store teams to identify when a product is out of stock quickly and easily. The task management tool sends immediate tasks to the warehouse or back store so that the product can be picked and sent to the sales floor, activating the replenishment cycle. This process is leveraged on store employees, who can continuously raise OSA incidents throughout the day, avoiding breakage during the store’s opening hours.
Regarding OSA prevention, Frogmi’s advanced analytics system identifies sales anomalies that raise alarms and trigger tasks on the sales floor. Hence, stores can assess those critical products and check if they are correctly displayed and adequately stocked.

Even though there are tools that can support the identification of stock-outs, it is always good to keep in mind who is actually doing the work. The stores’ personnel has limited time and resources to perform their tasks. Their capacity for execution is limited. The use of technology can go even further, prioritizing tasks based on strategic criteria for the business, such as opportunity cost, significant sales, or must-have products. In this way, stores can make efficient and effective use of their resources and ensure on-shelf availability.

The use of technological tools in the replenishment process will increase product availability by 4 to 6 points. At the same time, this availability for the customer will promote sales, with an estimated effect of 2 to 3 points of sales growth, according to BCG Group analysis.

The use of new technologies will be a fundamental pillar for retailers seeking to reach the next level. The replenishment process is becoming increasingly relevant to consumers. Eliminating stock-outs will be a basic requirement to deliver an adequate service level to enable a successful strategy and increase sales. Using technology in these key processes can increase operational efficiency, boost sales, and, most importantly, improve customer satisfaction.

Companies today have more channels of interaction with their customers than ever before. Traditional ones, such as physical stores, have been joined by digital ones, such as apps, social networks, and online sales. The challenge now is to bring them all together. Their integration into a single system is the goal of omnichannel, a strategy, increasingly in vogue, that allows the consumer to move seamlessly from one channel to another during the buying process and obtain the most satisfactory experience possible.

Óscar Katime, partner in charge of Innovation at the EY consulting firm, lists its benefits: “With omnichannel, a better service is provided, and this will enhance market positioning; which, in turn, will make the company more accessible, closer, transparent and friendly. An increase in the number of transactions, therefore, will be the consequence.” In addition, brands will gain valuable insights into their customers’ habits through this integration.

The opportunities for organizations to drive this strategy are multiplying in the face of the rise of the hybrid consumer, who combines traditional and digital shopping. “In 2020, 52% of citizens said they go to the physical channel and the internet interchangeably, but in the future, this percentage is expected to be 78%,” says the president of the Spanish Confederation of Commerce (CEC), Pedro Campo, referring to the conclusions of the organization’s last congress.

The physical store represents the traditional place where companies offer their products and services and carry out transactions. Still, few businesses today can do without digital channels, which multiply the opportunities to interact with the consumer. Victoria Labajo, professor of Commercial and Retail Management at Universidad Pontificia Comillas ICAI-ICADE, mentions the most common: “Websites [which have virtual mailboxes and chatbots], commerce through mobile devices, sales platforms and applications, social networks and marketplaces such as Amazon or eBay. In addition to product aggregators [sites that compare different brands of the same type of product, such as ShopAlike] and promotional flash sale platforms [that offer discounts for a limited period of time].”

If managing several of these channels at once is defined as multichannel, omnichannel is merging all of them into a single system. In this way, “they are presented perfectly integrated into the same shopping experience, or some of them are combined at different points in the process,” explains Labajo. For example, “in the physical store, digital touchpoints can be incorporated: tablets to check stock or for customers to consult the catalog or search for product information, as well as augmented reality applications, such as virtual fitting rooms, among others,” the professor describes.

For Luis Soler, Consulting Partner at Deloitte, a clear example of an omnichannel business model is “the restaurant with its own website, which takes orders by phone, has a presence on home delivery platforms and, of course, has tables on its premises.” Consumers thus have multiple ways to make reservations and orders and get helpful information about the business.

Communication with the customer by all possible means

Communication is a key factor in omnichannel. When referring to it, the director responsible for Digital Business at KPMG in Spain, Benjamin Evans, mentions several essential actions that are part of its digital aspect: “Display advertising [ads that combine images and text, and that are shown on the top or side of pages in the form of banners, in Spanish, pancartas], search engine marketing [search engine ads, SEM for its acronym in English], email campaigns, push messages on the cell phone [those that arrive from an application, even if it is not being used at the time] and social networks, among others.” Likewise, the typical traditional channels for developing a communications campaign are print, outdoor ads, radio, and television, he adds.

A combination of both worlds that this expert brings up is the gradual transformation of a medium like television into something more personalized and interactive thanks to Smart TV (connected TV). “Increasingly, users will see ads on the screen that will lead to a landing page [a web page accessed from a link] by pressing a button on the remote control,” Evans predicts.

In any case, what must be taken into account, stresses Erik Rigola, digital strategy specialist at the consultancy RocaSalvatella, in the Banco Sabadell Podcast “Simple ways to sell online,” is that “there are not only digital or only physical consumers, but omnichannel consumers, so it is not so important the channel through which the customer acquires the product but the shopping experience that is provided.” 

https://www.ivoox.com/player_ej_72344830_4_1.html?c1=006dff

For Evans, the center of the strategy will always be the user. “And you have to accompany them throughout the buying process to make it easier for them to get to know the product, the brand, or the company, but especially to make them feel the most important thing,” he adds.

Inditex represents one of those cases in which omnichannel is a success, Labajo believes. “Despite having arrived at e-commerce later than some of its competitors, this firm is committed to integrating digital and traditional, and it has achieved this by favoring the generation of traffic to physical stores from its online channels by prioritizing the collection of orders in its stores. And all of this is supported by the application of the latest technologies in logistics, radio frequency control [for stock registration] and augmented reality.”

A useful strategy for any company

Experts agree that the size of the company does not matter when it comes to implementing omnichannel. “In fact, it will be easier to implement it in a small and medium-sized enterprise (SME) or a start-up, since it will not have all those layers of bureaucracy, processes, and policies typical of large companies that make it difficult to redesign the customer’s shopping experience so that it can jump nimbly from channel to channel,” says Katime, a partner at EY.

This expert believes that few companies focus correctly on this strategy, whose objective should be to eliminate frictions and barriers that the customer may encounter. “If the driving force behind implementing it in the company is only to sell more, it is implicitly saying that it doesn’t matter what the consumer thinks, and this is what unfortunately happens on many occasions,” he stresses. The increase in sales, far from being the ultimate goal, is just one more benefit that comes as a result of its correct application.

The omnichannel in small commerce

The adoption of this strategy is an excellent challenge for all types of businesses. According to Deloitte’s Soler, its implementation requires learning how to efficiently exploit the data provided by the channels to make decisions, adapting and making the supply chain more flexible, innovating in customer interaction, and training personnel.

Faced with the onset of the pandemic, retail, however, has had to make a virtue out of necessity. “During the strict confinement, many entrepreneurs launched sales through websites and social networks, implemented new forms of payment such as Bizum, sold directly through WhatsApp, or increased their presence on platforms such as Instagram, making live broadcasts with their customers,” Campo points out.

“Now it’s time to analyze these tools, which are quite widely used in companies, especially to deal with queries and gain visibility,” admits the president of the CEC. However, “the purchasing process usually ends in the physical store,” emphasizes the expert, for whom this is the essence of this type of business. For this reason, retailers advocate an omnichannel system in which the traditional and digital channels complement and enhance each other without one replacing the other.

Original source: El pais.com