How retail businesses can grow and survive in the competitive world?

retail businesses

1.Keep pace with the industry you operate your retail store in.

You must understand that keeping pace with shifting customer habits has become even more important than before. It is very important that you have a good understanding of your industry and follow the changing trends of that sector. You need to incorporate the changes quickly in your business to have a competitive edge over the others. In addition, you will be able to serve your customers better and retain them.

2. Add New Locations

In order to grow your retail business, you must add new locations. But careful planning is required to do so as this requires a lot of work and investment. Opening a store in a new location is not simple because it cannot be a replica of your present store. The customers in the new location will have different expectations and requirements. So what works at one location does not always work in another location. But it is advisable to keep store logistics and operations uniform everywhere. Also keep customer service, payroll, communication channels, and policies the same will simplify training and organizing. Thus a sure way to grow business is by adding more locations, but it is equally important to do it right.

3. Expanding of product line and adding variation in existing products.

In order to retain customers, you need to add variations to the existing products. If you are selling creams, you may add a bigger jar option for customers who like to keep stocks. Alternatively, you could add a small jar for customers who want to try the product before buying a full-size jar. The other way to keep your customers is to add a new variation to an existing product. If you are selling scented candles, you can introduce a new scent. There are many ways to expand your retail business –by creating a new product or by the vertical expansion that involves renting your store in the evenings for events. 

4. Exploit New Channels for Sales.

Retailers these days have the advantage to sell on multiple sales channels. It is less costly and safer to expand sales through new channels than through new locations. A retailer can begin by starting an e-Commerce store for his products. This is so much simpler and uncomplicated than setting up a new store in a new location. The only precaution to be taken while opening an e-commerce store is to keep a centralized record of inventory and sales. Another channel that you canexplore is selling online through a third party. They will take a percentage of the sales proceeds, but it also saves you from making big investments. You also save on the time and effort required in setting up your own online business. Then there are social media, which is a good sales channel to exploit, especially for brands that already have an audience on Instagram, Facebook, or Pinterest.

5. Upgrade Shopping Experience

It has become mandatory that your retail business has to stand out if customers are to be retained and added. This is because there is too much choice in the market for them. Create a shopping experience so great that the customer does not want to go anywhere else. To achieve this provide uniform training to all the members of your team. This way they will be able to serve the customers satisfactorily. A good training program will eliminate the chances of miscommunication. First, impressions are very important in the retail business. Thus it is imperative that a customer should get outstanding service as soon as he enters the store. Make sure that you attend to customers with speed and checkout is efficient and quick, without having to wait in lines. Provide free samples to customers to help them decide on buying products that are expensive, like perfumes.

Conclusion

To conclude, in spite of the competitive market it is still possible to grow. The only requirement for growth is to update your present strategies. The threat posed by online shopping has to be dealt with intelligently. Also, provide a layer of protection to your business by getting business insurance. So be creative and follow the above steps and soon you will experience growth in your business.