Why the retail industry is in for a tough year (and what you can do about it)
The retail industry has had a tough time lately. Not only are we currently in the middle of what could end up being one of the longest and worst recessions in US history, but online sales have also taken a huge toll on this sector as well, and it doesn’t appear that things are about to improve any time soon. So why am I telling you this?
The Challenges
The retail industry has faced its fair share of challenges over the past few years. The rise of e-commerce means that shoppers are purchasing their items online, rather than walking into a store to buy them. This shift has made life harder on brick-and-mortar stores. But that's not all: with low unemployment and wage growth, consumers are being more frugal with their money and less likely to spend on nonessential items.
The Solution
The retail industry has been getting worse and worse each year. Customers are buying less and less, which is causing problems for retailers nationwide. There are three major reasons behind this trend: 1. Retailers are competing with each 2. Low-priced, low-margin products 3. Ease of shopping online
There's no denying that 2017 will be an especially difficult year for many retailers as they try to keep their heads above water amidst all these factors working against them.
What Retailers Can Do
The retail industry is certainly not in for an easy year. The rising cost of living and stagnant wages have been putting pressure on consumers, which has translated into increased pressure on retailers. But there are still things that retailers can do to survive these turbulent times and thrive once again.
What Store Managers Can Do
The most important thing store managers can do to minimize shrinkage and to help their bottom line is to not overstock. One of the biggest contributors to inventory shrinkage is overstocking, which leads to inventory being left out of stock and ultimately stolen. A good rule of thumb for determining how much product should be ordered or purchased at one time wo
uld be 10% more than what your store typically sells.