11 December 2013
The single largest asset most retailers have is their physical stores and the space they encompass. Operating a store requires a significant investment for rent, staff, utilities, etc., but it is the only true differentiating asset a retailer has over pure-play online retailers. Shopper behavior is evolving and the lines between the online and physical shopping experience are blurring. As home shopping and “click and collect” (where purchases are made on a retailer’s website and picked up in the local store) shake the industry, the nature of the store and the role it plays in the shopper’s world is changing.
For retailers to remain competitive and profitable in this rapidly evolving environment, it’s important to make strategic decisions on how their limited space is utilized. The answers are all in the data. With the right data, the evaluation techniques driving these decisions will become part of their strategy toolkit for years to come. The multichannel retailers who excel in the next decade will be the ones who excel in operating delivery and digital, while maximising their store assets to deliver value to both multichannel and non-digital customers.
This edition of Customer-First Retailing focuses on the optimisation of retail store space in a digital world. Specific topics discussed include:
Optimising retail space is clearly important when designing new stores, but it is also an optimal approach to improve a single section of an existing store.