From bricks to clicks: The digital transformation opportunity for retail
6 December 2021
The retail market was hit hard by the COVID-19 outbreak back in August 2021, when New Zealand went back into alert level 4.
Retail NZ Chief Executive, Greg Harford, said the August outbreak knocked retail businesses' confidence about their own future with 13 percent of retailers not confident that their business will survive and another 23 percent saying they are on a knife’s edge and it could go either way.
Additionally, consumer spending dropped. According to Stats NZ, the electronic card transaction (ETC) report that covers all debit, credit and charge card transactions within New Zealand-based merchants, spending in the retail industry was up 0.6 percent ($39 million) in July 2021 compared with the previous month, but down 19.8 percent ($1,257 million) in August 2021.
So, what can retailers do in the face of these immense challenges? One solution worth considering is taking your business online.
Digital transformation for retailers
The pandemic has not only changed the way we work, but the way consumers shop with many more of us now more likely to shop online.
Opening an online store could help your business access a wider market as it enables consumers to access and order products from anywhere. When your business goes online, shopping can happen 24-7, not just during business hours. Furthermore, consumers can place orders regardless of their physical location.
So, if taking your business online is an option for you, here are a few tips to consider.
Shopping and delivery options
Provide omni-channel shopping and delivery options for customers. Consider all digital channels and tailor according to what your clients use (e.g. website, mobile app, social media, etc.).
Focus on customer service
Good customer reviews increase the chance of your business bringing in new clients and product review and unboxing videos are quickly replacing the traditional way of marketing. Focus on providing a good online shopping experience for your customers to enhance the connection between them and your business.
Know your inventory
Knowing your inventory level in real time is a key to success for retailers. Making sure your online store reflects the real-time inventory availability for different products ensures a speedy delivery of goods to the consumer. Using an integrated online store platform, freighting system and inventory management system will boost your business and help you keep up with the trends in retail.
If you’re thinking about taking your retail business online, speak to your adviser or get in touch with the Findex Accounting and Business Advisory team, who have helped many businesses just like yours go from bricks to clicks.