Retail theft is not a new problem. However, it’s rapidly growing and evolving, especially since the pandemic. According to estimates, Canadian retailers have lost $9.1 billion to theft in 2024, an 82% increase from 2018.
U.S. retailers’ median inventory shrinkage percentage is 1.4%, up from 1% in 2018. Experts estimate that as many as 33% of corporate bankruptcies are linked to theft.
In today’s world, traditional security measures are not enough to stop retail theft. Guards and cameras alone cannot solve the problem. Instead, retailers must take a proactive approach to reverse losses led by external and internal theft.
In this blog, we look at key trends in retail theft. We also discuss how using technology in your retail security can help reduce losses.
ORT refers to coordinated efforts by professional crime rings that systematically target retailers. These groups steal high-value items and resell them through online marketplaces, illicit supply chains, and sometimes even back to unsuspecting retailers.
Their tactics range from cargo theft and smash-and-grab attacks to sophisticated forms like digital POS frauds, fraudulent returns, and coordinated flash mob-style thefts, where these groups coordinate thefts through social media, overwhelming store security. In one recent instance, a “flash mob burglary” event in Glendale, 30 thieves stole $300,000 worth of merchandise from an Yves St Laurent store.
It’s been estimated that the United States has lost a staggering $4.743 billion in taxes to retail return fraud.
Unlike external theft, which is opportunistic, employee theft is often systematic. Employees who understand store operations exploit weaknesses in inventory tracking, cash handling, or discounting systems. Popular methods include under-ringing items for friends, stealing cash from registers, manipulating refunds by creating false transactions and pocketing the refund money, or stealing merchandise directly from stockrooms.
While using surveillance cameras, employing guards, and conducting manual audits provide some deterrence against various forms of theft in trend today, it’s essential to note that these are reactive measures. In other words, they do not help to prevent theft.
Today, with sophisticated forms of theft on the rise, companies must step in proactively to reverse the trend. The way ahead lies in adopting a modern, data-driven approach to identifying fraud patterns and preventing theft. Modern technology provides the answer to overcoming the limitations of legacy approaches that fail to provide visibility across locations at the right time, often giving the culprits an advantage.
Some applications of leveraging technology to prevent retail theft are:
Technology unlocks real-time monitoring and fraud detection capabilities for organizations like yours. By leveraging state-of-the-art ERP, POS, and WMS built for retailers, you can create a solid line of defense with increased visibility into your inventory and transactions.
Retail ERP software can help detect real-time inventory and sales data discrepancies and immediately spotlight notable variances. Tracking POS analytics can help monitor recorded transactions easily for anomalies. Studying this data can uncover unusual voids, discounts, or cash refund-related frauds.
The 2024 holiday season is right here, spelling optimistic times for retailers. Deloitte’s Holiday Retail Survey projects an 8% growth in this year’s US holiday sales. As for Canada, sales increase is expected to hit a 32% rise, per JLL’s Holiday Shopping Survey Report. Clearly, the upcoming season marks a prime time loaded with retail sales opportunities in both regions. And like every year, this period isn’t just about increasing sales from holiday shopping. It also offers a chance to get new buyers and build trust and customer satisfaction beyond December. How do you make the most of the holiday season as a retailer?
It all starts with being proactive and well-prepared to ensure closing maximum business. The counter outcome is losing sales from potential customers choosing to shop with competitors due to poor planning or operational mishaps.
This blog explores strategies for ensuring the success of your retail business during this holiday shopping season. Before we get started, let’s examine customer mindsets and preferences this year.
What are consumer expectations for 2024 holiday shopping?
According to research, shoppers this year are cautiously optimistic. While their holiday budgets are higher than in previous years, they feel the squeeze. 40% of buyers across all income groups display five or more signs of frugal behavior. This stems from perceived higher prices of gifts alongside the high cost of living and budget restraints.
In line with this, anticipated behavioral changes among consumers include:
With these numbers, it’s clear that shoppers’ choice of retailers and festive shopping choices hinges on factors like promotions and discounts that align with their budgets, product availability during time-sensitive periods, and loyalty programs with high perceived value. The opportunity cost of failing to meet these expectations can be high.
The question remains: Are you prepared to meet consumer expectations while navigating these circumstances? Let’s explore actionable strategies that can ensure your holiday season stays on track.
Follow these strategies to keep your holiday season on track
1. Offer value-driven deals
According to the Deloitte survey, 76% of respondents believe consumers will value lower prices over brand loyalty and abandon existing retailers.
To ensure you stand out to the budget-conscious, create value-packed promotions that resonate with shoppers’ budgets. Advertise them well on media that works with your customers. This is super important as it is expected that 1 in 3 consumers will prefer to shop only as and when promotions or discounts are offered.
To demonstrate value, get creative and design offers that encourage spending. For example, you could bundle popular items and create value packs. Another idea is running targeted discounts during the main shopping days. You could also introduce bonus pricing for gift card redemption or offer last-minute deals, volume-based deals, and so on. In addition, continue cross-selling recommendations that add value to existing purchases. Whatever route you take to demonstrate value and increase sales, ensure stock availability when the shopper is ready to buy.
2. Enhance your loyalty programs
Who doesn’t love value for their hard-earned money? And honestly, your loyal customers deserve special treatment to make them stick. You must extend individualized treatment to your top spenders to encourage repeat visits and strengthen spending.
For this, make it a point to identify loyal customers from your CRM data and design better loyalty programs reflecting higher value for them. For example, you could offer this group additional incentives to your value-driven offers, like free shipping, bonus points, or exclusive discounts. You could also design loyalty incentives tied to early shopping. Get creative!
3. Get ahead with stocking strategies
Focus on stocking the right products at the right time and location. You must be equipped to cater to all shoppers, even the last-minute buyers, whether they buy offline or online or opt for BOPIS (Buy Online, Pick Up in Store).
For this, monitor which products and categories are trending in which locations and ensure you’re well-stocked on them. Track inventory levels regularly and ensure replenishment as and when needed. In addition, be equipped for catering to other non-product spending categories. For example, among Canadian buyers, 78% plan to purchase gift cards for those on their holiday list. To cater to this, ensure you have suitable systems to offer and redeem gift cards.
Read More: How Precise Inventory Planning Boosts Customer Satisfaction and Drives Retail Success
4. Optimize omnichannel operations
Seamless integration between online and in-store customer experiences is another essential consideration to ensure retail success this holiday season. According to research, online platforms are the top choice for 71% of US-based consumers owing to better price options and convenience. On the other hand, 99% of Canadians plan to visit a shopping center during the holiday season, up from 95% last year. Irrespective of where your consumers prefer to shop, ensure you’re prepared for omnichannel consistency.
For this, in addition to a great website and a well-staffed store, ensure aligned systems and up-to-date inventory information across every channel. This is key to ensuring that when customers are ready to buy online or in-store, the product is available for immediate purchase, and the purchasing experience uncompromised.
Technology can simplify the implementation of these strategies
While the strategies we’ve discussed are essential and can be game-changing to spell holiday season success, implementing them requires the right support system. This can come from robust technology like retail-focused ERP software.
End-to-end retail management software such as Magstar’s all-in-one retail software can ensure you’re well prepared for the season’s demands. With built-in tools for demand forecasting, real-time inventory tracking, analytics-driven insights, smooth communication, omnichannel integration, and much more, the solution lends you all the agility you need.
Ready to keep your season (and customers) on track?
The 2024 holiday season is an excellent time for retailers ready to meet the moment, and customer prefers. Gear up, proactively understand consumer expectations, and implement the strategies we’ve discussed to ensure your operations run smoothly and customers are satisfied.
Are you prepared to make this your most successful holiday season yet? Book a time to explore how Magstar’s retail technology can help.
It’s peak shopping season. A loyal customer logs into your online store, hoping to buy a product they’ve been eyeing for weeks. They’d seen it at your store earlier but wanted to do some research before committing. Now is the perfect time, and they’re ready to purchase. They add to the cart and hit checkout. And then, disappointment strikes with an “out of stock” message. Not only does the sale fall through, but your customer experience takes a hit. They might take their business elsewhere next time or leave negative feedback online. Sounds familiar?
Inconsistent stock levels, delayed order fulfilment, or inaccurate product availability information are prime reasons for potential sales turning into lost opportunities for retailers. In the world of instant gratification, customers expect way beyond great products and compelling reasons to buy. They value smooth, behind-the-scenes operations, which directly impact customer satisfaction, trust, and loyalty. Companies that understand this and lead in customer experience outperform laggards by nearly 80%. How do you stay on top of your game? One pivotal approach is to focus on inventory planning precision.
In this blog, we place a spotlight on the advantages of investing in precise inventory management infrastructure and share ways it helps you boost customer satisfaction and drive success for your retail business:
Different ways in which inventory management positions you to boost customer satisfaction and drive retail success:
Today’s consumers expect to shop on their terms—whether online, in-store, or through mobile—and demand a seamless experience. Retailers who cater to this and operate with robust omnichannel strategies see a 10% growth in annual revenue.
Catering to this expectation requires more than just a flashy website or a well-staffed store. It demands precise, up-to-date information about inventory across every channel. When your systems are aligned, customers have confidence that when they see a product or an offer online, it’s available for immediate purchase. If they prefer to buy online and pick it up in-store, they expect that item to be at that price and ready when they arrive. Proper inventory management helps ensure this omnichannel consistency. This enhances the customer experience and builds the reliability that shoppers value, driving repeat visits and loyalty.
In retail, the race is often won by whoever caters the fastest. After all, customers don’t just want their products; they also want them now. When your logistics are streamlined, and forecasting is accurate, your business can respond swiftly to changes in demand, ensuring products are always available when customers want them. Simultaneously, when fulfilment is fast and precise, customers feel confident that their needs are being met efficiently. Such experiences build trust and satisfaction, encouraging repeat business. However, if your inventory system is slow to update or is prone to inaccuracies, order fulfilment delays can be a by-product, leaving customers frustrated. Statistically, 52 percent of customers tend to switch to a competitor if they have a single negative impression. How do you ensure delivery speed and accuracy, whether for in-store pickups or online deliveries? You’ll need real-time, reliable data on what’s in stock and where. This is the only way to cater efficiently, and it comes from precise inventory management!
As a retailer, there’s a delicate balance you need to strike—having enough stock to meet demand without overstocking and tying up resources. When your stock levels are off, it’s a lose-lose situation. Stockouts leave customers disappointed, while overstocks lead to markdowns and wasted space.
Accurate inventory management helps you ensure you’re always stocked at the right level. Analysing trends, past sales data, and even seasonal shifts positions you to make smarter decisions about what to stock and in what quantities. You can start early promotions on high-demand categories and ensure product availability throughout the situation. With the correct demand anticipation, your customers are less likely to encounter frustrating “out of stock” situations, and the bottom line also benefits from more efficient operations.
Read More: Follow these 7 Tips for Increasing Warehouse Efficiency Using ERP Software
Modern consumers crave personalization and prefer retailers who understand their unique preferences. Precise inventory management plays an enabling role in making this possible, too. The right tools empower you to analyze buying patterns and customer data. This way, you can tailor your inventory to match what specific customer segments will likely purchase.
For example, suppose a particular demographic frequently buys certain products. Access to this intel can help ensure those items are always in stock and cater to last-minute buyers. This responsiveness not only enhances their shopping experience but also keeps them coming back and fosters deeper customer loyalty.
You’ll agree operational efficiency is the backbone of customer satisfaction. When your store is well-organized, has fast checkout, and employees provide accurate information on product availability, customers notice and feel like coming back. Robust inventory management makes this practically possible.
Real-time inventory insights empower your staff to help customers better. When customers enquire about any product, staff can check instantly whether it’s in stock or available at another location. This reduces wait times and creates a smoother shopping experience. According to Forrester, customers are 2.4 times more likely to stick with a brand when their issues are addressed quickly. Moreover, from a leadership perspective, operational efficiencies allow you to direct resources where they matter most—improving the customer journey.
The driving force behind these benefits is the implementation of advanced solutions that enable precise inventory management. Modern Enterprise Resource Planning (ERP) systems built for retail integrate all these critical functions—from real-time inventory tracking to supply chain management—into one cohesive platform. Investing in robust retail-oriented ERP technology ensures you’re always a step ahead in meeting customer expectations and building a successful business. This isn’t just about operational efficiency; it’s about creating a foundation for lasting customer satisfaction!
Read More: Game-Changing Features of ERP Software for a Retail Store: What to Look For
At Magstar, we understand the importance of inventory precision, and our ERP solution is designed to help retailers stay ahead of demand. The Total Retail solution offers automated reordering, distribution, and inventory tracking processes so you can effortlessly manage your inventory levels across your entire store chain.
Want to see how you can optimize your inventory and satisfy your customers? Let’s connect for a demo and discuss how our ERP can revolutionize your approach to inventory management. Book a time
We live in highly competitive retail times. Retailers are investing heavily in lead generation, paying an average of $34 for a retail lead. Yet, this isn’t translating into revenues as expected. Research suggests that the average conversion rate for a retail lead is as low as 3%. Understanding the why is essential to ensure this isn’t the reality for your retail business.
Here’s the fact: Consumers today are bombarded with endless shopping options, both online and offline. Merely offering them products isn’t enough; much more is needed to entice shoppers. This is where experiential retail delivers engaging, immersive, and often personalized elements to raise conversions. What does this mean for you as a retailer? How can you effectively implement experiential retail to stand out in a crowded marketplace? Let’s find out.
Experiential retail is a growing approach to retail in response to the evolving expectations of modern consumers. It involves creating unique retail experiences beyond just offering a place to buy goods. It’s built to ensure consumers connect on a deeper level. While experiential retail is traditionally associated with physical stores, it’s increasingly finding a place online over the past few years.
Introducing experiential retail is all about providing an exclusive experience that engages your consumer’s senses. For it, you need to focus on measures to build a connection between the brand and the consumer, not just on sales.
Nike creates immersive in-store experiences at its flagship outlets featuring interactive displays, product customization stations, and even fitness sessions. This way, they transform a simple shopping trip into an engaging event.
Apple designs its stores as community hubs. To make the in-store shopping experience educational and enjoyable, they offer workshops, classes, and hands-on product demonstrations.
Let’s look at experiential retail for online stores now.
Sephora has embedded a virtual artist tool in its online store to allow customers to try makeup products virtually before they purchase makeup. This has enhanced the shopping experience and reduced the uncertainty of buying makeup online, making their retail brand sticky.
Similarly, furniture retailer IKEA leveraged AR to let customers visualize how its furniture would look in their homes. This helps customers with the convenience of online shopping while bridging the gap between online browsing and in-store experiences.
Whether it is physical or digital channels, if you’re looking at building rich, seamless shopping experiences, you need the support of technology. A great starting point is your retail management software, which you’ve been imagining as a support only for your back-end operations. You can use retail-specific ERP systems to integrate data from various sources. For example, you can combine customer preferences, inventory levels, and sales patterns to gather a unified view and deliver personalized customer experiences.
Example of using retail ERP for offline experiential retail: Your ERP systems can smoothen the management of any experiential events you organize. It can help you streamline logistics, from staffing to supply chain coordination, and build a lasting customer impression.
Example of using retail ERP for online experiential retail: Suppose you incorporate a virtual try-on on your eCommerce website. Using your ERP’s real-time inventory tracking features in conjunction can ensure that products featured in your virtual try-on are available for immediate purchase. This can enhance customer satisfaction and increase your chances of sales.
As consumer expectations evolve, your retail strategy must adapt. The current times demand seamless blending of the physical and digital worlds to create moments that matter. Whether you do this through interactive in-store experiences or by extending immersive online platforms, you must foster customer connections and resonate emotionally. When you do this successfully, stronger and more loyal customer relationships will be a byproduct.
Wondering where to begin? Start by leveraging the power of your retail ERP systems to deliver personalized, memorable experiences that today’s consumers crave. Magstar offers retail management solutions to help you with every facet of immersive shopping experiences, from customer relationship management to order fulfillment and ensuring your offerings match your customers’ needs. Contact us for a demo today.
Efficiency in warehouse and inventory management operations can make or break your retail business. However, research suggests that most retailers do not get the best of it. According to data, US-based retailers sit on approximately $1.43 in inventory for each $1 of sales. This overstocking translates into issues like capital blockages, increased costs for managing and keeping additional inventory, and the risk of shrinkage due to product expiry. In addition, it is common for retailers to struggle with poor customer satisfaction due to inefficient workflows. For instance, around 34% of retail businesses report shipping an order late due to selling out-of-stock products.
How do you ensure these are common in your warehouse? For starters, if you’re already using Enterprise Resource Planning (ERP) software for your warehouse management, it’s time to leverage its capabilities optimally. Once you successfully integrate your business into a consolidated system with your ERP’s support, you can enhance your warehouses’ productivity, reduce errors, and boost your bottom line. In this blog, we’ll share seven practical tips for optimizing your warehouse operations using retail ERP software.
Introducing automation is an excellent way to boost your warehouse management accuracy. Data suggests that 67.4% of inventory managers still use tools like Microsoft Excel for inventory management. You need to make sure this is not the case with your organization.
Leverage features in your ERP software to introduce a more advanced approach and automate time-consuming processes like inventory tracking and reordering. For instance, you can implement workflows where the software automatically generates purchase orders when inventory levels fall below a predefined threshold. This auto-replenishment can help ensure you always maintain the right amount of stock. With that, you will reduce your risk of overstocking or stockouts and free up your staff’s time to focus on more value-added tasks.
For efficiency, it’s crucial to ensure your warehouse layouts best utilize your available space. Using your retail management software’s data analytics features can help you quickly dive deep into your inventory data and analyze picking patterns. This way, you can explore the most efficient routes and layouts and, with visibility, introduce measures like grouping high-turnover items and placing them near packing and shipping areas. Doing so will help you enhance goods’ accessibility and minimize travel time. A word of caution: Make sure you periodically review this and adjust it based on dynamic changes in demand patterns.
The pace and accuracy with which you fulfill customer orders reflect your productivity and directly correlate with customer satisfaction. You can leverage your warehouse management software to boost these aspects by streamlining your order processing by integrating order management, picking, packing, and shipping into a single system.
For example, you can use the barcode scanning feature integrated into your ERP software to minimize errors in order fulfillment. This can help you reduce manual errors, expedite the fulfillment process, and ensure accurate order delivery with optimum customer satisfaction. Research suggests that using barcode technology can reduce 43.5% of human error—a clear signal to start using it!
As a warehouse owner, you’ll agree that cross-docking or directly transferring incoming shipments to outgoing trucks bestows benefits like minimal handling requirements, decreased storage time, and increased throughput. According to research, addressing overstocking and understocking can help you achieve a significant 10% reduction in inventory costs. You can use your ERP’s capabilities to streamline this with enhanced cross-docking coordination and real-time transfer management features. Doing so will help you reduce the need for warehouse storage and simplify the flow of goods with timely and accurate processing.
Surprisingly, up to 30% of companies do not analyze the cause and source of their supply chain disruptions. If that’s the case with your business, your ERP system’s business intelligence features can help you get valuable data insights into your operations. You can use it to spot trends and forecast demand to guide decision-making and optimize operations. For instance, you can analyze performance data on inventory turnover, order processing times, and supplier performance. Any bottlenecks you spot can guide you on where to focus for improvement.
Maintaining solid relationships with suppliers and customers is crucial when managing a warehouse. According to data, 74% of businesses experience shipment delays and much longer lead times. Using your ERP software’s features can enhance communication and collaboration with both parties and reduce such occurrences. For suppliers, the supplier management tools can help you better track orders, manage contracts, and monitor their performance. For customers, you can enhance their experience by providing real-time customer order delivery estimates with a real-time order tracking facility.
If your ERP is integrated with mobile technology, make sure you start encouraging your warehouse staff to use it to access important information on the go. That’s what 73% of businesses plan to enhance warehouse management. If you encourage your workers to use handheld devices and mobile apps for real-time data entry, inventory scanning, and order processing, they’ll be able to work from anywhere in the warehouse. This will help you increase service accuracy and speed, enhancing overall warehouse efficiency.
Optimizing your warehouse’s efficiency using ERP software involves a combination of automation, strategic planning, and continuous improvement. Implementing these tips will help you transform your warehouse operations, enhance customer service, and even grow your bottom line.
Magstar’s warehouse management solution is tailor-made for retailers. It offers all these features and much more. If you want to streamline your retail business and warehouse for success, connect with us for a demo now.
Prefer to deepen your understanding of ERP and its potential for your retail operations? Check out our blog for the latest industry insights.