Retail stores’ profitability mostly depends upon the difference between the price charged by the manufacturer and the product’s selling price. The more the difference between the two, the higher the profit margin. However, another way retail managers can increase the profitability of their business is by adopting a more technologically advanced approach to in-store operations.
Here are five technologies retailers can introduce within their in-store operations:
1. Self-Checkout
Consumers need a more time-efficient shopping experience and a quicker and hassle-free checkout method. Self-checkout counters may help make the checkout process for customers faster and easier. Each station can be set with the equipment required, for example, barcode scanners, monitors, and point-of-sale machines. This will make the consumer experience consistent. In addition, self-checkout counters will eliminate mistakes like delivering the wrong change or failing to give a client their receipt, thus increasing efficiency.
To further increase the store’s efficiency, managers can set multiple self-checkout counters to reduce every customer’s paying time, increase efficiency, and increase customer satisfaction. This will result in repeat purchases and customer loyalty.
Moreover, having a self-checkout system can help reduce costs. The initial cost of installing self-checkout counters would be a big investment; however, it can save money in the long run.
2. Barcode Scanners
Keeping track of all the products can be a cumbersome task. Managers must keep an updated list of all the items in the store. The easiest and most efficient way to do so is by using barcodes. Retailers may quickly scan an item using the barcodes to generate all necessary information without manually looking through the database.
Furthermore, a wireless barcode scanner pushes efficiency to the next step. It allows store employees to work from anywhere in the store; it enables remote capabilities. The scanner can be used without being connected to an operating system. Because of this, wireless barcode scanners are efficient and highly useful when many items need to be scanned across a vast region.
Moreover, since wireless barcode scanners run on batteries, they don’t need to be connected to a wall outlet. This makes it possible for the work to be carried out even if there is a power blackout.
3. Inventory Management System
Retail stores need to make sure the inventory they hold is sufficient to meet the demand for any particular product. However, at the same time, if a store holds too much inventory, that can incur opportunity costs, which reduces the store’s profitability. The use of management software can make the process of inventory holding much simpler for the manager.
Inventory Management Systems can calculate how much inventory needs to be ordered and when. The systems can also determine a minimum level of stock that needs to be held to ensure the business can meet the customers’ demands. Furthermore, inventory management software is integrated with tools to automatically order more stock when inventory falls below the minimum level.
The software also takes into account the lead time. Lead time is the duration between the start and finish of a procedure. For a retail business, lead time is the duration between ordering and receiving the inventory. By taking the lead time into account, inventory management systems ensure that stock does not run out while waiting for more stock to arrive.
4. Omnichannel Customer Experience
As the world is becoming digitally advanced, more and more people have easy access to smartphones and the internet. This progression has resulted in shoppers going through retailers’ websites before visiting the store to ensure that a certain product is available. Shoppers might also access different websites to compare prices of similar products. Therefore it is becoming increasingly important for retailers to use omnichannel strategies.
Omnichannel is a selling method that utilizes several channels and aims to provide clients with a smooth purchasing experience. An omnichannel approach connects a retailer’s distribution channels, including physical stores, social media, and websites.
Statistics show that repeat purchase rates are 91 percent higher for companies with a strong omnichannel strategy. Therefore, more retail managers should implement this strategy to increase customer loyalty.
5. Radio Frequency Identification
In order to automatically detect and track tags affixed to products, radio-frequency identification employs electromagnetic fields. Radio Frequency Identification (RFID) can be regarded as a form of wireless communication. Retailers are opting for RFID technology as it is becoming cheaper to implement. There are many ways in which RFID helps increase the efficiency of a retail business:
- An RFID reader may be used by store staff to read information from all the goods.
- Significantly cuts down on time required for stock counting.
- To quickly locate objects on the shelf without having to look through every item on the shelf.
Furthermore, RFID technology can help in loss prevention. Loss preventions are the measures a business takes to prevent loss, such as reducing fraudulent activity and theft. Shoplifting and staff theft contribute greatly to the $61 billion worth of losses the retail industry faces. Having products marked with RFID tags can help reduce this contribution.
5. Autonomous Robots
The use of autonomous robots may assist in enhancing and revolutionizing vital areas of a retail business, for example, retail operations, customer experience, and data management. The robots can be used to carry out tasks in the store. Employees can focus on more value-added responsibilities such as programming the robots, improving the business’s marketing strategy, etc.
Furthermore, using robots can substantially reduce the number of errors. This will increase the proficiency and productivity of the store.
However, using robots in retail stores is not widely popular. Retailers are observing and gaining insight into how consumers interact with the machines and how this affects their shopping behavior.
Conclusion
Using technologies to optimize in-store operations in retail is an excellent way to increase productivity and profitability. However, it is important to remember that effective use of technology is essential for the business to benefit from it. If retail managers do not have a thorough understanding of the innovations but continue to innovate their stores, this can adversely affect the business. Therefore, retail managers must stay up-to-date with the latest technologies and gain sufficient knowledge before implementing them.
