In the UAE, Saudi Arabia, and the full Middle East and Africa region, retail competition is growing. Never before have consumers had so many opportunities to choose products and brands to invest in, and while that is good news, it also means the competition could be outperforming you.
That is especially true if your retail store design and layout and retail solutions are not working together to create the type of experience you want your customers to have. Consider the following 7 common retail mistakes that could be limiting your business success and how to avoid them.
1: Lack of Omnichannel Integration
Omnichannel is the application of strategies to engage consumers through multiple digital and physical touchpoints. If your online and offline experiences, branding, or service differ, that creates a roadblock to building your business.
That is critically important in the Arab Emirates, where the population is heavily tech-savvy and moves faster every year to digital retail solutions. Embracing omnichannel enables consumers to learn about your brand, buy comfortably, and come back.
2: Inefficient Inventory Management
Without efficient retail inventory management, businesses suffer. Poor inventory management practices contribute to costly losses. 70 to 90% of out-of-stock situations relate to ineffective replenishment methods.
In the UAE, specifically, consumers know they can find what they need elsewhere. They are not likely to wait for your product to come in.
3: Poor Customer Data Utilization
As you consider retail store design and development, consider all of the touchpoints you have to create a relationship with your customer by simply learning about their needs and objectives. Poor customer data utilization means you are not collecting all of the data available that could inform decisions, reduce costs, and improve operations.
If you do not know your customers' needs, what triggers them to purchase, and what they expect in demand fulfillment or inventory demands, you could be missing key benefits to managing your retail success.
4: Outdated Technology and Software
Key indications that your technology or software is out of date include these common areas of concern for retailers:
- NO click-and-collect solution
- Products oversell often
- Customers lack inventory visibility
- Manual tasks hold your team back from engaging customers
- You lack real-time reporting
- Overspending on maintenance and technology upkeep
In each of these areas, a positive change towards more modern and integrated technology could enhance your business's ability to meet consumer needs, make better, data-based decisions, and more efficiently minimize fraud and risk.
Technology improvements occur daily around the globe. In the UAE specifically, you will see new technology launched so frequently that it is challenging for companies, including retailers, to stay up to date. However, your consumers expect you to offer the technology they need to facilitate the buying process, streamline their connections, and support their buying methods. The good news is that new technology facilitates this more efficiently than ever.
5: Security Vulnerabilities
It used to be necessary for retail store design and layout to, in part, consider security risks and facilitate safety protocols for teams. Today, security risks happen at an increasingly alarming rate through cybertheft. Some data indicates that in UAE and Saudi Arabia specifically, DDoS attacks have increased by 70%, most often targeting the public sector from stolen data.
Retailers must work aggressively to consistently stay ahead of the threats and risks. That is not simple to do because the world of cyber threats continues to grow and expand, becoming more complex than before. Vulnerability management is one core component of protecting your business. It provides a framework that’s embedded into your organization’s security policies and governs the importance of maintaining compliance requirements and mitigating risks as they expand.
6: Limited Mobility and Flexibility
How much mobility do your customers and sales staff have? Do they have the ability to process an order in the parking lot for a client who has just arrived? Is there a self-serve kiosk that makes it possible for your customers to process payment at their own rate and not have to worry about the interaction with a long queue? By providing more flexibility and mobility for associates and customers, you make the process of making a purchase seamless, and that makes it more enjoyable overall.
To do this, focus on these key areas as you also work to build your retail store design and layout:
- Create a connected interaction opportunity. This includes providing point-of-sale opportunities throughout your location and in the hands of your associates.
- Empower your associates to make decisions based not just on checking out the customer but also on facilitating the best buying experience, building long-term loyalty as they do.
- Take data analytics and apply what you learn to your next campaigns to build more effective and efficient campaigns that target customers where they are in the buying journey.
7: High Operational Costs
High operational costs, often from ineffective design and layout, outdated systems, or mistakes made in inventory management, cost retailers a significant amount of money each year. High operational costs eat away at profit margins directly, but they can be reduced and improved with a careful, stepped process that focuses on specific vulnerabilities and core opportunities.
Reducing operational costs increases your cash flow every year. With the support of data, track and pinpoint areas of opportunity. Prioritize those that will bring more money back into your business.
Take Action to Improve Your Retail Location to Maximize Your Business’s Profits
Retailers must routinely and consistently evaluate and update retail systems. Monitor industry changes and apply specific strategies that could benefit their business profits and branding.
Proactive engagement in each of these areas enables a retailer to consistently work towards its objectives and goals, minimizing overspending and investing more time in building long-term loyalty with customers.
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