How do you improve in an environment where there are 100s of factors affecting business?
Understand the main point of leverage and just focus on it.
With laser-like focus.
The illusion of Progress in Retail:
Why Availability Matters More Than Anything Else
Retail can be a fast-paced and ever-changing industry.
There are always new trends, technology advancements, and competition to keep up with. As a result, retail companies are often trying to improve and grow.
Companies may focus on
– better locations,
– training their staff,
– improving visual merchandising,
– changing buying and sales policies,
– adjusting pricing,
– cutting costs, and
– creating new products.
But, despite all these efforts, the illusion of progress can often still persist.
The reason for this illusion is that there are more than 100 factors that a retail company can work on to improve.
But if the company fails to focus on the most important factor, it will never reach its full potential.
The number 1️⃣ priority in retail should always be the 𝗮𝘃𝗮𝗶𝗹𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗼𝗳 𝗯𝗲𝘀𝘁 𝘀𝗲𝗹𝗹𝗲𝗿𝘀. 𝗔𝗻𝗱 𝗿𝗲𝗱𝘂𝗰𝗶𝗻𝗴 𝘁𝗵𝗲 𝗮𝗺𝗼𝘂𝗻𝘁 𝗼𝗳 𝘀𝗹𝗼𝘄-𝗺𝗼𝘃𝗶𝗻𝗴 𝗽𝗿𝗼𝗱𝘂𝗰𝘁𝘀.
Think about it this way:
If a customer can’t find the item they’re looking for, they’re likely to leave without making a sale.
Even if they do manage to find what they’re looking for. If there’s too much stock. The store feels cluttered. It can create a negative shopping experience. Reduce the customer’s willingness to spend.
If a store has a good balance of inventory. Best sellers are always in stock. It creates a positive shopping experience and encourages customers to make more purchases. This results in
– higher conversion rates,
– bigger ticket sizes, and
– more repeat business.
As a CEO or Head of Planning,
All other efforts to improve and grow the retail business should be secondary to
𝗲𝗻𝘀𝘂𝗿𝗶𝗻𝗴 𝘁𝗵𝗲 𝗮𝘃𝗮𝗶𝗹𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗼𝗳 𝗯𝗲𝘀𝘁 𝘀𝗲𝗹𝗹𝗲𝗿𝘀 𝗮𝗻𝗱 𝗿𝗲𝗱𝘂𝗰𝗶𝗻𝗴 𝘀𝗹𝗼𝘄-𝗺𝗼𝘃𝗶𝗻𝗴 𝗽𝗿𝗼𝗱𝘂𝗰𝘁𝘀.
By prioritizing this,
Retail companies can avoid the illusion of progress and reach their true potential.