How brick-and-mortar stores can improve revenue during COVID-19

by Administrator
6 replies
Digital Agency Network offers advice to brick-and-mortar retailers on coping with the effects of the pandemic, and tips on how to improve takings during the crisis.

So, what can retailers do to up revenue during widespread lockdowns and with far less - if any - foot traffic being clocked up in malls and shopping centers worldwide? Increasing sales isn't going to be easy during such a crisis, but some things can be done to adapt to the new sales environment it's created.
  • Connect with your important customers
    The article mentions that it's been said 20% of your customers can represent a whopping 80% of your sales. It's well worth keeping in touch with the consumers who contribute most to your books. That can be via newsletters, emails, or reaching out on a more personal level.
  • Gift cards
    Gift cards are a great way to prompt customers into action - and to boost takings when times are tough. They're a way to remind people you're still open for business during the pandemic, and to offer an incentive to choose your store instead of a competitor. Digital cards also mean customers don't need to leave their home to make a purchase, which is a win-win.
  • Revisit and reassess your brand messaging
    Being sensitive to customer needs during COVID-19 is vital. It's worth making sure that your marketing material takes that into account, given the current times - and the stresses on people.
  • Make shipping easier - and cheaper
    Anything you can do to increase online sales during the COVID-19 pandemic is going to be a plus for your balance sheet, and shipping might be key to success in that area. Make it easier for customers who don't live nearby to purchase items from you. Be fair with postage costs. Keep picking times down to a minimum and encourage good reviews.

Predicting the future isn't easy as things stand, and that's why it's important to consider all the angles when trying to accommodate the needs of locked down and fearful customers. It's worth doing all you can to make sure the shopping process is streamlined. That's going to stand you in great stead for when things return to something more akin to normal.
#brickandmortar #covid19 #improve #revenue #stores
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  • Profile picture of the author Casinotutor
    Thank you, Expert! 2020 is really difficult for all of us! My business is decreased 80 percent of sales.
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    • Profile picture of the author DABK
      What kind go business do you have?

      Originally Posted by Casinotutor View Post

      Thank you, Expert! 2020 is really difficult for all of us! My business is decreased 80 percent of sales.
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  • Profile picture of the author Matthew Stanley
    Tangentially related to this - I found this piece by Fidelity's former OTC fund manager really interesting. His contention that Covid's biggest beneficiaries are *category leading* brick and mortar stores - who've now leaned into (and resourced) ecommerce in a way they may not have for another 5-10 years gels with my own experience shopping at these stores (Walmart/Target/Costco/Best Buy/etc) this year..

    A few callouts:
    • Amazon has actually lost share in e-commerce during Covid. The largest e-commerce share gainers in most categories have been category leading physical retailers as well as the DTC businesses of most brands. Amazon is still growing really fast, but this is due to growth in the market for e-commerce. They are factually losing share of e-commerce which is a significant change, albeit one that had been in process for several years. There were years pre 2016 when Amazon was taking roughly 100% incremental share of e-commerce and well over 100% incremental share of total retail sales. While Amazon is gaining share of retail spending, they are losing e-commerce share and this is manifested in the fact that they are growing slower than the overall market for e-commerce
    • Wal-Mart's digital revenue in Q2 was an annualized $42 billion, growing 94% -- faster than Amazon. Best Buy's digital revenue in Q2 was an annualized $19.4 billion, growing 242% -- faster than Amazon.
    • For the first time *ever* at many of these companies, e-commerce is being resourced and managed appropriately while taking advantage of all the online advantages conferred by their store networks. I suspect this is the first time that the online analytics team is as important to the CEO as the merchant
    • Beyond scale based advertising efficiencies, physical costs also scale online -- even more variable costs like shipping benefit from scale based on the UPS and Fedex rate cards. One of the more interesting observations from attending board meetings was that almost any small e-commerce acquisition was accretive as Jet could immediately lower shipping costs for the acquired company by at least 10%. All this manifests in the fact that the revenue increases from e-commerce for category leading retailers have not been at the expense of profits
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  • Profile picture of the author MyiMall
    The challenge isn't just for brick and mortar retail stores - pretty much every small business is affected -- from personal services like hair salons and dentists to contractors, repair businesses, etc. Unfortunately, many of them are not going to be able to survive and it's going to have a devastating effect on communities - which means declining home prices, less money for schools - everything.

    Help Small Business Owners while making a recurring income for yourself - truly "win/win"!
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  • Thanks for appreciating in this critical time. This is a precious suggestion to all beginners who has to start your business.
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  • Profile picture of the author Matthew Stanley
    on the "make shipping easier" front ... just saw an interesting if concerning thread from the founder of Pulse TV. Curious whether any other eCommerce folks have encountered similar restrictions/limitations from Fed Ex and the like?

    Jaffers thread:
    • Heads up e-commerce folks. Fed Ex is placing shipping limits on several clients from 11/11 -1/1. One vendor who ships for Groupon was told they are limited to 250 packages shipped per day
    • The explosion in online sales is wrecking UPS. Fed Ex and postal systems. Of course, optimized systems w/o slack get crushed. We decided to open stores when people within 10 miles started flooding to pick up in our office. Our warehouse is 5 blocks from our office.
    • When 5-10 people/day were coming to our office BECAUSE they didn't trust UPS/Fed Ex/Postal, we thought opposite of everyone else & opened stores. PPE is needed when needed. Buying online is going to be a real sh*t show in the coming days. Expect delays, lost shipments, etc.
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