Physical retail stores aren’t just for selling anymore.
Let me explain…
In recent years, we’ve seen the rapid expansion of click-and-collect services, which have become the norm for many consumers. In fact, research shows that 68 percent of shoppers now prefer to retrieve their online purchases in-store. So in the face of changing consumer behaviour, what’s next for delivery in the retail industry?
Enter the DIY and trade sector. Major players in the space have made the small, but significant, step forward by building on their click-and-collect capability to provide same-day delivery (Screwfix Sprint is an example), all while making minimal modifications to their existing logistics and operations. This transition is crucial as today’s customers not only demand high-quality products but also a range of hassle-free delivery choices as part of a seamless shopping experience.
To this end, the concept of “ship-from-store” (SFS) has gained traction, as it allows retailers to transform their brick-and-mortar stores into localised fulfilment centres. A strategy that enables them to offer same-day home delivery and gain a competitive edge in the market.
Faster delivery times and improved sales
SFS isn’t just for DIY retailers. Any retailer can benefit from implementing this model, as it speeds up delivery times and can help boost sales. For example, retail giant Abercrombie & Fitch Co. offers same-day delivery by leveraging its stores as additional shipping points. By doing so, the company is able to get products to customers faster than if it relied solely on centralised warehouses or national distribution hubs. In fact, according to Forrester, stores that sell both store and online inventory, see an uplift in online revenue of up to 30%.
Better use of stock
Another significant advantage of SFS is that it allows retailers to leverage real-time data from stores to closely track inventory levels. A capability that helps avoid a host of inventory management issues that often arise from relying on delivery from large, centralised warehouses.
SFS also improves product availability by enabling staff to fulfil orders from the store closest to the customer. A win-win situation for both parties as customers are more likely to find the items they want in stock while reducing the possibility of placing backorders.
Getting the most out of existing stores
As online shopping continues to grow, many retailers are left with excess space in their physical stores. What could they do with this space? You guessed it; by implementing a SFS strategy retailers can use this space to generate more revenue by offering certain add-ons that wouldn’t be possible if the product was shipped straight from a warehouse.
For example, retailers can offer personalised orders that are fulfilled in-store, adding the human touch that customers appreciate. This not only increases customer loyalty but also boosts profits.
In summary, it’s time for retailers to rethink the role of physical stores beyond simply being a point of sale. Rather, businesses should consider leveraging stores as localised fulfilment centres, in exchange for expedited delivery, improved inventory management, and increased revenue. The use of SFS strategies is the key to remaining competitive in today’s retail landscape and by adopting this approach now, retailers can stay ahead of the curve and drive growth for their business.
Contributor: Graham Smith, strategic account director at Gophr
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