Your nephew’s birthday is coming up, and you still need to buy him a present. You have enough time to purchase something online and wait for it to be delivered, or you can also go buy it in a physical store. Which scenario are you more likely to do?
This seems like a simple decision, but there are many factors affecting shopping habits. At one point, big-box stores were all the rage; however, what was once the preferred shopping method has become increasingly less popular in recent years.
Get More Information - https://www.avercast.eu/inventory-forecasting-software
Unfortunately, some of these big-box retailers don’t realize there’s a solution for many of their problems. Inventory management systems aid companies of all types, and inventory issues tend to fade away. These inventory planning tools have been under development constantly for years to ensure businesses get the most accurate forecasts possible.
Department Stores: What Customers Like VS What Customers Don’t Like
Positives
- Convenience – let’s be real. A store full of inventory is a huge modern-day convenience. Sometimes you forget things, like your nephew’s upcoming birthday, and you may not remember until the day of. Amazon might offer a great price on the present you have planned for him, but you don’t have any time to spare. Luckily, you’re able to race to the department store down the street before his birthday party.
o The stores that keep popular items in stock are likely using inventory forecasting software. This software gives the business clarity regarding which products their consumers are going to want, and when they’ll want them.
Customer Service – This has the potential of being one of the best parts of an in-person shopping experience. Having an ‘expert’ on the inventory is a wonderful tool to have access to. Customer Service representatives ensure customers leave the store satisfied and with a smile on their face. After all, isn’t the customer always right?
Tangible Experience – Many customers prefer to have a physical experience with a product before purchasing it. It can be beneficial to some to have the chance to touch, feel, and even try on a product. This isn’t possible online, however, some companies try their best to reach these consumers.
For example, Amazon has an option called Prime Wardrobe. This is an option where customers can order clothing through Amazon Prime, and they have a week to receive the items, try them on, send them back if they want, and only pay for what they keep.Variety – Department stores are full of inventory. People love to walk around stores and look at all the available items. To some, this brings more satisfaction than scrolling through different products online.
Sales – Some stores offer sales on items that are only valid in-store and not online.
Negatives
Cost – The prices that come from shopping in-store are often higher than prices online for the same items. This is due to the huge amount of overhead that must be paid, rather than an online store that has a bit less to support.
Specialization – Referring to the vast amount of product available in store, sometimes these large amounts of inventory are overwhelming to shoppers. There is the reality of “too much of a good thing.”
Availability – Trying to keep so many SKUs in store often results in overstock and stockout situations. Unfortunately, it’s a common occurrence for customers to go into a store only to find the product they want to buy is out of stock.
These negative situations cause a string of harmful side effects to the businesses who experience them. Sales are lost, customer experiences are negative, and customer loyalty is often tarnished. These kinds of scenarios are avoided when business utilize inventory management software.
Location – Many don’t appreciate the locations where department stores are usually found. They are typically surrounded by other stores, busy parking lots, and other annoyances. This pushes people toward the ease of shopping from their couch, online.
Convenience – While shopping in-store is convenient, it pales in comparison to the convenience some find in online shopping. They can receive the products they desire, often at lower costs, and avoid all the negative parts of shopping in person.
There are already inventory issues due to the upcoming holidays, and it’s been predicted most of mall-based department stores will be shut down by the end of 2021.
Inventory management software could tackle many of the common issues that are seen in department stores. Popular items being out of stock, having way too much of other products, and more issues can be a thing of the past if stores use effective inventory planning tools.
Inventory forecasting software uses algorithms to predict what demand will look like for various products. The software helps demand planners know what inventory to order, how much to keep in stock, and aids in many other operational elements.
If you see any area where your inventory management could improve, you need to get your hands on some reliable inventory forecasting software.