Retailers who have closed their doors do now have an opportunity to prepare for re-opening or online commerce as they will probably have more time than usual to analyse historical sales data and their stock position.
It’s completely possible that as people are currently spending less or even nothing on luxury or non-essential items while staying at home, they will be looking for something to buy when they have the opportunity if they still have disposable income. While we don’t know when that might be, make sure you’re in a good position for when that window opens again.
Here are a few pointers to really identify where you can make your business more resilient for that time.
- Make sure your CRM is up to date, and you have a good database of birthdays and anniversaries you can market to. Analyse when customers last made a purchase and build a target list.
- When were the best times?
Use your sales data to analyse what were the best-selling periods for the past 3 years, and what type of items were sold at that time, and check what stocks you might need.
- Really dig into that obsolete stock
Find out which pieces have been in your inventory for a year or maybe even only 6 months. Make plans to find ways of selling it on, maybe on your online shop or an Ebay or Amazon store, to free up cash for inventory that does sell.
- Analyse your best-sellers and worst-sellers, and check the order lead times on the items you do sell regularly.
While they may not be the usual lead times at the moment, you can keep in touch with your suppliers about how the supply chain is affected.
- Check your most profitable lines
You may know what some of them are just by your day-to-day knowledge, but you may be surprised by others, it’s not always the most expensive items – how much revenue does the humble watch battery drive? No doubt there may be a number of watches which have been in isolation for weeks or months.
- How much of your revenue is driven by repairs?
Statistics show that as much as 10% of a retailer’s revenue comes from repairs. Make sure your repairs & service side is in good shape, and see how you can improve turnaround to provide great customer service and drive loyalty.
- If you don’t currently have a loyalty scheme, consider how you can offer one to existing customers now so they come to you when they are ready.
If your business management system doesn’t give you this data, or you don’t yet have a system, contact Clarity & Success or Bransom to discuss options.