As we enter 2022, Coronavirus continues to wage its war on a retail sector it has altered beyond recognition over the last 24 months.
At the height of the first lockdown, online sales naturally surged by an enormous 129% as consumers adapted to life at home. Although things have started to balance out a little, in-store purchases are still 10% down on previous years, whilst online sales are still up by more than half.
In short, people’s buying habits are profoundly different now than they were a mere 2 years ago, which undoubtedly has a knock-on effect on retailers and in particular the stock they hold.
Here are just five things you need to consider if you’ve seen the balance of your sales shift from the shop floor to the computer screen….
Returns will increase
It’s only natural that when customers are buying without seeing, touching, or trying on items, they are more likely to get decisions wrong and return rates will shoot up. Returned items can easily lead to stock confusion and disruption unless your systems are solid, and staff well trained in current practices.
Making extra product journeys
A customer buying a product in-store is a wonderfully simple transaction but switching to online sales increases the complexity of the product journey significantly. An item sold online now has to make its way from supplier to warehouse / store and then on to the final customer.
An additional journey for every item you sell is no mean feat in terms of logistics, so it’s understandable that this can sometimes, particularly if there is then a return journey from the customer as well, cause some stock losses and confusion.
Online vs Physical Stock Levels
If your business previously only sold on the high street or in physical stores, the move to hybrid sales that split between online and in-store can sometimes be a painful one. Do you carry online-only stock? Do you sell from the same central stock? Do you understand which SKUs are selling well online vs in-store? Do you know the level of online returns? Is demand different between the two channels? These are all questions that effective stocktaking can quickly answer for you.
Our conclusion
Stocktaking should already play a vital role in your retail business; it can minimise stock losses, help you make accurate and fact-based decisions on procurement and as a result, increase the margin on every item you sell. If you’ve moved online, the chances of stock loss or confusion are heightened, purely because there are more variables. That means that if stocktaking was already a central part of your business, it’s now absolutely vital in helping you thrive in difficult and turbulent trading conditions.
For more information on how our experienced stocktaking team can help your business, please give us a call on +44 (0)1637 874609 and we’ll be happy to answer any questions you may have.
