Lately, you can’t read the retail news without coming across the announcement of another retail giant shutting their doors. Some of the more recent to make headlines include large household names such as Collete, Jeanswest, Harris Scarfe, Bardot, Topshop, Shoes of Prey, Ed Harry, and Napoleon Perdis.
Store closures are continuing and the toll of victims of Australia’s so-called ‘retail apocalypse’ is on the rise. Last year alone saw the downfall of 9300 stores. Times are tough with fierce competition and international brands landing on our shores.
All of this doom and gloom certainly suggests challenging trading conditions not only in Australia but globally. Despite all this, the Australian retail sector has remained resilient, and many retailers continue to thrive. 2020 is likely to be another challenging year for the retail industry, but Aussie retailers will continue to stand their ground on local soil as well as find their place on the global retail stage.
So how can a retailer not only survive but thrive in the current retail environment? What can we learn from the retailers that are leading the way?
While it’s impossible to have a one-size-fits-all approach to tackling the issue, there are a couple of key trends among top retailers that stand out as likely contributors to their success.
Experience is Everything
To be successful in the current retail climate it all boils down to the customer experience. Saturated markets mean that customers are spoilt for choice. An Internet Trends report by Kleiner Perkins and Mary Perkins suggests that 82% of customers will stop shopping with you after one bad experience. If they don’t enjoy the experience, they will simply turn elsewhere.
The retailers that are on top, are the companies that have a deep understanding of who their customer is and knowing how to engage with them. From online presence, through to social media through to the in-store experience, it’s all about meaningful and frictionless experiences.
A retailer that has demonstrated how much the experience can transform a brand is Bailey Nelson. They noticed that eyewear shopping had previously felt very clinical and buying glasses was unnecessarily expensive.
“We wanted to turn that on its head,” said co-founder Nick Perry. “Why not make eyewear one of life’s pleasures? We saw that as a real gap in the market. So we make sure customers have a wonderful examination with staff who are passionate about what they’re doing and make it exciting.
“On the Australian retail landscape now, you’ve got to be vertical to win. Like Aesop, who sell beautiful products in inviting stores, we make our own beautiful products and take a lot of inspiration from them. It’s important to adopt a new approach, and give customers a great experience.”
A Higher Purpose
Brands are also finding that customers are looking for more than just great products and great service. Customers—particularly Gen Zers and Millennials—are more than ever buying from brands and stores that align with their values. Shoppers aren’t just looking for the cheapest or the best anymore. Instead, they are searching for purpose-driven products and brands with a social conscience.
A retailer needs to have a strong message and understand why a customer will want to purchase from them. The stationery and giftware company, Kikki K, places a strong importance on the meaning behind their products. The chief executive Iain Nairn said that their success is owed to giving customers more than just great products. They seek to inspire and empower people to live their best life every day.
Some Final Quick Tips
- Review your marketing strategy. It’s important to have an appropriate as well as a flexible strategy. Retailers should listen to customer messages, keep an eye out for industry trends and adjust strategy accordingly.
- Find your niche. It’s important to have a strong point of difference that customers will look to your store for. If the customer is unable to experience it, then it is not a point of difference.
- Customers expect more from a retail experience in today’s world. It’s important to have a seamless omnichannel distribution model that allows the customer to buy your product whenever and wherever it suits them.
- Keep the store displays and merchandise fresh and attractive.
- Make sure you have effective staff that are creating a great customer experience and going the extra mile for shoppers.
If you’re looking for help with hiring the right staff we can help – contact us here. Or if you’re ready to make the transition to retail from another career path, check out our careers page here.
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