Biggest Challenges in the Retail Industry:
Retailers face many challenges day-to-day. Whether it be meeting the high rental and leasing costs while meeting customer demand, or fulfilling customer expectations, and maintaining a safe environment for staff, survival in the retail industry is a constant test.
At Shelving Depot we specialise in retail stockroom solutions that allow you to overcome challenges and turn them into a competitive advantage.
This blog explores four of the top retail frustrations and the solutions we offer to clients to help them gain the advantage over their competitors.
Challenge #1: High Rental & Leasing Costs.
Shopping centre vacancies are at a low 3.8% according to Colliers Retail Report for the first half of 2024. This means rental costs continue to be demanding and contribute to rising overheads for retailers. In prime CBD locations rental rates are as high as $5,000 per sqm. This results in high breakeven and the need to drive maximum revenue per square meter.
Our Solution: Optimise Return on Investment
With the largest range of sizes on the market, we are able to ensure every square meter is used to its fullest potential. This minimises the footprint required for your stockroom and helps to maximise the space utilisation, making sure you receive the highest possible return on investment.
Check out this post showing just how much can be made of so little space.
Challenge #2: Limited Storage Space
Failing to have the right product style and size that your customer requests can be the difference between winning or losing a sale. Holding high levels of stock is often constrained by small stockrooms or inefficient storage.
Our Solution: Maximise Stock Capacity
Taking advantage of our mobile compacting units and our large range of product sizes, we are able to design solutions that maximise your stock holding. This means you can hold a larger range of sizes and styles and avoid stockouts. Our design process allows us to calculate the exact storage capacity for each type of your products which ensures the right mix of shelving and hanging storage is provided in your stockrooms.
Challenge #3: Customer Response Times
In the world of retail, fast and efficient customer service is key. Short wait times for retrieving additional sizes and styles from the stockroom impress customers and increase the likelihood that they will purchase at your store. Stockrooms that are difficult to keep tidy severely impact your ability to offer the wait times your customers expect. Too often stockrooms can become messy and disorganised, with products difficult to locate and replenish.
Our Solution: Increase Efficiency, Decrease Picking Time
The range of accessories that we supply with our stockroom shelving range helps to create a solution that is easy to organise and, more importantly, maintain. Using whiteboards, pigeonholes, labelling, and dividers allows items to be quickly identified, picked, and replenished. Ultimately, this maintains order in your stockroom, reducing wait times for customers, with this leading to higher sales conversions.
Challenge #4: Staff Retention, Safety and Wellbeing
Staff retention is a priority for retailers who want to avoid losing both longstanding and newly trained staff. Safety and wellbeing are two key factors that contribute to staff retention. Stockroom solutions that are difficult to use can make the daily grind a miserable experience for staff. Slow retrieval can lead to poor customer service which reduces job satisfaction.
Our Solution: Increase Staff Retention, Safety and Wellbeing
Tidy and organised workspaces help things to run smoothly. Our systems offer both a safe and enjoyable storage solution. By offering fast identification and picking, routine tasks are made easier, allowing staff to provide excellent service, leading to higher job satisfaction. Furthermore, when staff notice that their company is investing in a safer working environment, it helps them to feel valued and improves morale across the team.
Contact us today to transform your stockroom.
Click here to learn more about our retail stockroom process and get an understanding of what to expect when working with our team for your back-of-house fitout.
