Month: November 2019

How can retailers improve service at the point of sales

How can retailers improve service at the Point of Sale

The Point of Sale is the final link in the retail chain. It’s the central customer service area where the transaction deal is sealed, where knowledge is found and where staff position themselves to monitor all areas of the floor.

It’s also a site that can make or break the customer experience within a retail outlet, depending on whether the queue is long, customer service is available and whether the staff that are found there boast the knowledge they should.

And although it may be just a small component of an entire retail experience, a negative encounter at the point of sale can impact a retailer far beyond just the loss of a sale.

With that in mind, here are four ways to improve service at the Point of Sale.

Knowledgeable staff

If you’re a customer seeking product insight and expertise, the Point of Sale is your first port of call. It’s the place where questions are answered, stock is sourced, returns are processed, and loyalty is formed.

That makes knowledgeable staff the primary line of defense at the Point of Sale. It’s the spot to dazzle the customer with service skills, wow them with product insight, and provide a personalized experience that’s second to none.

A store’s POS reports and analytics will indicate who your best-performing staff are, and also highlight where further training of staff might be required.

Quick transactions

Retail Week notes 89 per cent of shoppers have left a store due to a long queue, and 65 per cent of those said they immediately went to a rival outlet afterwards.

Furthermore, according to Lightspeed, the maximum time people are prepared to spend waiting is 6 minutes 46 seconds, which makes a swift transaction at the Point of Sale imperative.

Retailers should ensure there are sufficient checkouts open and enough staff on hand to manage the transactions at speed.

This is where analytics like traffic counting and sales data can be invaluable, allowing a store to understand when they are likely to be busy and how many staff will be required.

Meanwhile, retailers should consider the physical processes involved in the sales transaction, and how they can be expedited. For example, in addition to scanning a product, EAS security labels will need to be deactivated while security tags will need to be detached.

Good POS practice sees these actions occur seamlessly, with security label deactivators built into the same area as the barcode scanner, allowing staff to complete two actions at one time.

When it comes to detachers, these should be easy for staff to reach with sufficient detachers available to accommodate all registers in a bid to save staff time.

On a similar note, the positioning of labels and tags on a product helps speed up deactivation and detaching at the POS. Security labels should either have the barcode printed on them or be affixed right next to the barcode.

Tags should be affixed at a similar place on each garment, so the sales associate knows exactly where to find them in order to take them off.

mPOS

How can retailers improve service at point of sale

In order to further cut the queue many retailers are turning their attention to mobile Point of Sale. The portable technology allows retailers to take the checkout to the consumer, process sales on the floor if required, and also allows for remote monitoring of a store’s performance and sales, which facilitates more efficient store management.

Importantly, mPOS also empowers the sales associate with knowledge at their fingertips – whether it’s what stock is available, what’s trending on social media or which item might best complement the product the consumer intends to buy.

Know your policy

The Point of Sale is the place where store policy comes into play, especially when handling issues like returns and exchanges.

All staff should be trained in returns and exchange policy and given clear instructions on exactly how to complete each action on the POS

If the store’s policy only allows managers to complete returns and exchanges, the retailer needs to ensure one is readily available to assist their staff.

The final word

The Point of Sale gives retailers the opportunity to leave a lasting impression of a great customer experience.

Critically, this experience should be warm, welcoming, insightful and above all frictionless, accommodating the instant gratification and convenience that today’s time poor customer seeks.

5 ways to minimize out of stock

Five ways to minimize out of stocks

Picture this…it’s the peak of the holiday shopping season and a customer has traveled half an hour to your store. They’ve come in the knowledge you have a specific item in stock. They know because they researched and confirmed it online.

Then lo and behold, despite all data indicating the item is available, it’s nowhere to be find in store.

The result? A very poor customer experience which is likely to damage the image of a brand, and a vast amount of wasted time for the staff who were involved in the search for the item.

The trouble with out of stocks

For both customers and staff unexpected out of stocks are one of the most frustrating experiences in retail.

They also cost retailers greatly in terms of both reputation and cold hard cash. In fact IHL Group recently found US retailers lose $144.9 billion in sales every year due to out-of-stocks.

Meanwhile, there’s a definite mismatch between retailer and consumer perception of how often the issue occurs.

IHL further found retailers report an average in-stock for 92 per cent of their merchandise. Customers on the other hand, believe that figure is closer to 75 per cent.

And out of stocks affect retailers across a number of levels: loss of sales, customer loyalty, online order fulfillment from the store, and shipping costs that eventually lead to margin erosion.

So, what tools area available to help stop out of stock events occurring at all?

RFID

5 ways to minimize out of stock

With its ability to contain detailed item information and offer up-to-the minute inventory counting, RFID is one tool that can assist in eliminating out of stocks.

Not only does the technology allow retailers to understand where any product is at any moment in time, a recent report by Auburn University found RFID can offer 99.9 per cent supply chain accuracy, compared to traditional barcode accuracy of 31 per cent.

This helps eliminate out of stocks on a number of levels: it ensures orders that are shipped to an outlet are accurately accounted for and reconciled, and allows for up-to-the-minute inventory counting to understand what exactly is in store.

Policy and automation

Store policy plays a critical role in managing out of stocks, particularly in areas like order reconciliation and inventory counting. If stock is counted as it’s received and reconciled against the order, retailers have a better understanding of what should be in stock.

Regular inventory counting also assists, along with clear policies about layaways and returns. Meanwhile automation is increasingly being employed to minimize out of stock events, ensuring when an item is running low, it is quickly replenished.

Good loss prevention

Although it’s often overlooked, loss prevention is inextricably linked to out of stock events. Why? Because if an item is stolen, a retailer expects it to be there, but it isn’t and often they have little idea it has disappeared until they realize there are fewer products available than expected.

This makes theft mitigation imperative when it comes to combating out of stocks. Items should be protected at a product-based level using loss prevention strategies like electronic article surveillance and security tags or labels.

Clean lines

5 ways to minimize out of stock

The physical layout and general look of a store can also help eliminate out of stocks, with clear shelving, and neat displays allowing staff to quickly understand what’s running low.

Meanwhile those clean lines should extend to the storeroom to allow staff to have a consistent idea of what’s available out the back and replenish items when required.

General tidiness also allows sales associates to quickly find items when they need to, ensuring there’s no time wasted for the customer or the retailer.

Data and analytics

Retailers have a wealth of data and analytics at their disposal and this too can play a role in eliminating out of stocks. It can help predict when an item is likely to be in demand, when foot traffic is likely to be high and also alert staff when an item will potentially run out.

This data also allows retailers to plan, particularly in advance of promotions when stock is in high demand.

The final word

In an era where the customer experience is paramount, out of stocks are the bugbear of both retailers and their consumers. They are also often highly preventable, requiring only small alterations to the way a store operates to prevent their occurrence.

Thanksgiving shopping

163.5 million people expected to shop over Thanksgiving

The five-day Thanksgiving holiday is set to be one of the busiest shopping periods of the year for US retailers, with an estimated 165.3 million people expected to shop between Thanksgiving Day and Cyber Monday.

According to the National Retail Federation, the long weekend of spending will form a major component of the expected $730.7 billion of retail sales across the holiday season.

Here’s an insight into what’s in store…

Peak shopping days

Black Friday is tipped to be the busiest day of the holiday long weekend, with the NRF’s survey indicating 114.6 million people are considering shopping on this day.

It’s followed by Cyber Monday, with 66.6 million people expected to take advantage of an array of online bargains.

Shortly behind Cyber Monday is Small Business Saturday when 66.6 million people are likely to support local and boutique retailers, while 39.6 million consumers are considering shopping on Thanksgiving Day, and a further 33.3 million are likely to hit the stores on the Sunday.

“The tradition of Thanksgiving weekend holiday shopping has become a five-day event with consumers spending money in stores, supporting local small businesses, and online with their mobile devices and computers,” NRF President and CEO Matthew Shay said.

“Even as people are starting to purchase gifts earlier in the season, consumers still enjoy finding good Thanksgiving deals and passing time shopping with family and friends over the long holiday weekend.”

The lure of a deal

The promise of a good deal is the reason most people say they’re keen to shop over the Thanksgiving holiday period, with 65 per cent of people saying “the deals are too good to pass up”.

A further 28 per cent will shop out of tradition, while 22 per cent intend to use the occasion to start their holiday shopping, 21 per cent will use shopping as an activity, and a further 17 per cent are looking forward to it as a group activity with friends or family.

Young shoppers the keenest

Thanksgiving shopping

Meanwhile, young shoppers have expressed the most interest in shopping over the period.

Almost 90 (88 per cent) of shoppers aged 18-24 say they are likely to shop and note particularly enjoy the social aspect.

Similarly, 84 per cent of those ages 25-34 plan to shop, compared to 69 per cent of holiday shoppers overall.

Not just online

In heartening news for bricks and mortar retailers, the Thanksgiving holiday will also likely see slightly more consumers who shop in store than online.

Almost half (47 per cent) of survey respondents indicated they would start their holiday purchasing journey in store, compared to 41 per cent of consumers who planned to start online.

Those under 25 indicate they are even more likely to start shopping in-store (52 per cent).

Others could be convinced

Meanwhile, of the consumers who do not plan to shop, more than half (53 per cent) say something could convince them.

The top things that could change their mind include:

  • a sale or discount on an item they want (26 per cent)
  • if a family member or friend invites them to shop (12 per cent)
  • if they could be sure the items they want are available (11 per cent) or
  • a free shipping offer (11 per cent).

The Thanksgiving Holiday weekend commences with a public holiday on November 28 and includes Black Friday on November 29, Small Business Saturday on November 30, Sunday, December 1, and Cyber Monday on December 2.

Retail trends

Six retail trends retailers need to know this holiday

As retailers head into the thick of the holiday season, Deloitte has released its key predictions for the period ahead, noting consumer sentiment is positive, and convenience, good products and great deals will be high on their holiday wish list.

Here’s an insight into Deloitte’s latest findings and the six retail trends retailers need to know this holiday.

Strong consumer sentiment

After surveying over 4400 people across the US, Deloitte’s 2019 Holiday Retail Survey indicates retailers look set to enjoy a cheerful period ahead.

They tip retail sales will grow 4-4.5 per cent this year with e-commerce expected to increase 14-18 per cent over 2018.

They also note the average consumer will fork out $1496 per household over the holiday period.

Convenience, good products and deals

retail trends

There will be three main drivers of purchasing habits in the coming weeks, with convenience, good products and great deals among shopper’s major priorities.

The report found:

  • 76 per cent of shoppers would be looking for a good product
  • 75 per cent would be focused on price
  • 65 saw convenience as a key purchasing factor

Free delivery over fast delivery

With the consumer focused on convenience, fast shipping, free shipping and buy online pick up in store (BOPIS) are proving popular offerings.

But of those options, free shipping has emerged as the clear winner.

The report noted 85 per cent of consumers preferred free shipping over fast shipping and were willing to wait three days or more for delivery.

Meanwhile almost half of all consumers intended to use BOPIS in the coming weeks.

Online purchasing to increase

retail trends

Online spending is tipped to continue outpacing spending instore in 2019, with 59 per cent of money spent over the period expected to be spent online, compared to 36 per cent in-store.

Meanwhile, two thirds of shoppers indicated they will research online and then purchase at least some gifts from a bricks and mortar outlet.

When it comes to the way that shoppers access online, smartphones will be the tool of choice, with 70 per cent of people indicating they will make a purchase with a smart phone, compared to 67 per cent in 2018, and just 59 per cent in 2017.

Inspiration will be found online

Aside from purchasing, consumers will also be seeking much of their gift inspiration online, with half of all shoppers undecided as to what they will buy when they begin holiday shopping.

As a result:

  • 65 per cent will turn to online retailers
  • 58 per cent will consult search engines
  • 52 per cent will visit retail stores
  • 40 per cent will visit retailer websites or apps
  • 31 per cent will look at review or comparison sites
  • 18 per cent will turn to social media
  • 18 per cent will look at print media
  • 12 per cent will peruse electronic media
  • 5 per cent will consult virtual assistants

Shopping to peak early December

Contrary to other years where shopping has peaked in November, this year consumers are expecting to make many of their purchases in early December.

Deloitte notes the trend may be driven by the fact Thanksgiving falls unusually late in 2019, pushing Black Friday to November 29, and Cyber Monday to December 2.

Their research found:

  • 35 per cent of consumers expected to purchase holiday season products prior to the end of October
  • 44 per cent would purchase between November 1 and 15
  • 64 per cent would purchase between November 16 and 30
  • 69 per cent would be shopping between December 1 and 15
  • 51 per cent would purchase items between December 16 and 31

You can learn more about Deloitte’s predictions here, or see what the National Retail Federation expects of this holiday season here

shoplifting behaviour

10 signs of suspicious shoplifting behaviour

Over the next six weeks, loss prevention will rank as one of the most important areas of focus for bricks and mortar stores as the sector looks to optimize retail’s peak period and prevent shoplifting.

In addition to strategies like electronic article surveillance and CCTV, staff awareness of what to be on the lookout for will play a critical role in reducing the spike in shoplifting that’s likely to occur.

But what constitutes suspicious behaviour and what should staff be aware of? Here are ten signs of suspicious shoplifting behaviour that all retail staff should know.

Avoidance

According to experts, body language is a key clue a shoplifting crime is about to take place. Potential shoplifters will often avoid eye contact and interaction with staff, may appear nervous, or fidget.

Meanwhile, if a customer spends more time looking up and around a store, rather than focusing and deciding on items, it’s a clear sign they are scoping the retail outlet for staff presence and security cameras, rather than perusing items they intend to legitimately buy.

Excess baggage

A couple of shopping bags are pretty normal for customers in a retail outlet, excess baggage like a backpack or an overly large handbag is not.

Large bags are often ideal for concealing items, and some even feature hidden panels to hide products or foil to interfere with older EAS.

Overly clothed

Even in winter, it’s rare that a customer will need to wear heavy and multiple layers of clothing within a climate-controlled retail environment. If they are, it is considered another key clue that someone’s intentions are less than honorable.

Excess clothing can be used to secrete stolen items, so anyone who is layered up should be observed carefully.

Regular visits, few purchases

shoplifting behaviour

Many shoplifters will often scope a store prior to committing the crime of shoplifting. That means they may visit an outlet on more than one occasion in order to get a feel for what items are available, how effective the security is and how attentive staff are.

If a consumer regularly visits an outlet without making a purchase, they might be more interested in what they can target rather than what they can buy.

Distraction

Often shoplifting involves more than one offender and between them their aim is to distract staff while stealing items.

If a customer is asking a lot of unusual questions, that can be a sign something’s not right. Meanwhile, a common tactic is to ask for items that are out of stock and request the staff member checks the storeroom, giving the “customer” the opportunity to steal.

Split groups

On that note, staff should watch for groups of people who enter the store and then split up or groups who assemble outside a shop.

These can be clues swarming is about to occur, or that they have the intention of implementing the distraction tactic.

Examining, but not buying

Although many customers love window shopping or browsing, there’s a distinct difference between that and biding time before committing a theft.

If a customer seems to be picking a lot of items up and then putting them down again without really engaging with the product, that might be an indicator their actual attention lies elsewhere.

Quick exits

They may not run, but most shoplifters will try to make a quick exit as they attempt to steal an item. Watch for customers who make a beeline for the exit, and who fail to interact with staff as they do.

Too many in the changeroom

shoplifting behaviour

Out of sight of sales associates, the change room is a key area where theft takes place. Stores should limit each cubicle to one person, count items in and out, and implement advanced technology like the Fitting Room Guard.

Loose price tags

Some shoplifters don’t just steal an item outright, they commit the theft by swapping tags to pay less than they should.

If a price tag doesn’t look right, or looks tampered with, this can be a key indicator a swap has taken place.

The final word

While there’s no one type of shoplifter and people from all races and walks of life can potentially be a thief, educating staff on the suspicious behaviour that often accompanies the crime goes a long way to identifying and preventing theft.

Staff should also be attentive to customers in general, while additional security measures such as EAS, CCTV, loss prevention personnel and good store layout can also be employed.

But one thing’s for sure, with peak period pending, peak shoplifting season is also underway.

You can directly purchase EAS security tags and labels here.

Alligator security tag

Spotlight on the Alligator Tag

It’s not something many people consider, but design plays a major role in how effective, secure and efficient a security tag is when it comes to loss prevention and electronic article surveillance.

The right tag will allow sales associates to affix and remove it quickly, feature a strong locking mechanism to thwart shoplifters, and provide minimal interference when it comes to the customer experience of a product.

In the apparel sector, one tag that offers all those features and more is the Alligator Tag. Here’s an insight into why its design is so different and the benefits it offers.

The importance of good tag design

When it comes to security tags, there are a number of key tag design features that retailers can embrace to increase the effectiveness of the tag and also improve their efficiency.

These include:

  • Pin heads that correspond with the size of the locking mechanism to minimise the chance of the tag being prised apart
  • Higher strength magnetic locks to thwart detachers that shoplifters source on the internet
  • Large pinheads that cannot be pulled through a garment

The Alligator Tag is a revolutionary design that ticks all three of these boxes while offering a range of further benefits.

What is an Alligator Tag?

Alligator security tag

As the name suggests Alligator Tags snap shut to lock into position on a garment. They feature a one-piece design with a pinhead at one end, the locking mechanism at the other, and a hinge in between.

When not in use, the pin on the Alligator Tags is concealed. It is pushed into the locking mechanism using a small button, allowing for greater safety when tags are being affixed to merchandise.

Meanwhile, Alligator Tags feature a Superlock magnet and are available in RF and AM frequencies.

Benefits

Due to their single mechanism design, Alligator Tags alleviate the need to buy both the pin and the tag. Instead, all components are included within the one simple mechanism.

In retail, that means there are no more lost pins, while the fact the pin is concealed when not in use makes them safer to use for retail associates.

Additionally, the single mechanism allows sales associates to apply the tag with just one hand, making them easy and fast to affix and then remove at the Point of Sale.

This saves sales associates valuable time, while improving the customer experience.

The round locking components of the tag ensure the Alligator Tag is less prone to illicit removal, while the Superlock magnet considered an ideal strength to combat tag tampering.

Alligator Tag uses

Alligator security tag

The Alligator Tag is suited to a range of products across the apparel and fashion accessories sector. The smooth pin slides effortlessly through fabrics, and the tag can also be clipped over product components like straps.

Meanwhile, the small size of the tag ensures security does not interfere with the customer experience of the item.

That makes Alligator Tags idea for:

  • Lingerie
  • Bras
  • Apparel
  • Swimwear
  • Some footwear
  • A range of accessories

You can learn more about the Alligator Tag here, or find out how to select the right tag or label for your retail outlet here.

Holiday returns

The rising tide of holiday returns

You can learn more about this year’s retail holiday predictions here or gain a further insight into the link between shoplifting and return fraud here.

Retailers may be rubbing their hands together in glee that this year’s peak period is set to deliver strong results, but for many, there will also be a sense of trepidation that the New Year will see a significant portion of those items returned.

Last year, the National Retail Federation found 11 per cent of all holiday sales would be returned for a variety of reasons, with some more legitimate than others.

Here’s an insight into the rising tide of returns, and the top strategies retailers can employ to minimise risk.

An increasing trend

A number of recent reports have illustrated the increasing trend of returns. And in an internet age where customers are set to make more of their holiday purchases online this year, it only stands to reason.

Online purchasing means many consumers do not have had the opportunity to sight, touch or feel an item in person and in the case of apparel they have not had the chance to try that item on. Retailers often seek to accommodate by offering the option of easy and convenient returns in a bid to lure customers in.

Meanwhile, the post-holiday season sees a bump in returns as gift recipients and gift-givers exchange or return unwanted items.

Holiday return stat’s

In 2018, the National Retail Federation found retailers anticipated 10.6 per cent of all annual sales are returned with holiday sales seeing that increase to 11.1 per cent.

Erring on the side of caution, data firm APPRISS put a conservative dollar figure on that amount. Working on a 10 per cent return rate, they noted the value of returns in 2018 equated to $369 billion, while holiday sales returns would be worth approximately $72 billion.

Interestingly, online returns are also impacting bricks and mortar, with the NRF noting many retailers reported seeing more online purchases returned to physical locations, with 37.9 per cent reporting increases in buy online, return in store.

The trouble with returns

Holiday returns

Handling returns delivers a wealth of challenges to retailers. On the one hand, both bricks and mortar and online retailers wish to accommodate an increasingly fickle customer, but on the other returns can be time-consuming, resource-intensive and costly. They can also be fraudulent.

In 2018, the NRF found 8.2 per cent of all returns were fraudulent and that rose to 10.3 per cent during the holiday sales.

Meanwhile, the trend of convenient returns is also resulting in a new phenomenon known as the “serial returner”.

The serial returner

Classified as a customer who regularly buys multiple items with the intention of returning some, serial returners are increasing, according to a report by Brightpearl.

They found almost half of customers agree that they will at some point buy multiple items with the intention of sending some back, and retailers have also acknowledged an increasing problem.

In the US, Brightpearl noted 42 per cent of retailers had encountered an uplift in intentional returns between 2017 and 2018.

Handling returns

In May last year, Amazon introduced a lifetime ban on serial returners, in a move which was widely supported by consumers.

Blackpearl explains over a quarter of US survey respondents strongly agreed with the approach, while only seven per cent strongly disagreed and only 11 per cent said they would never shop with an online retailer who imposed this condition.

Their research also found other retailers might be willing to follow suit, with 61 per cent of US retailers saying they would ban serial returners from their website permanently, while fewer than one-quarter were not inclined to follow this approach.

But there are also other options available when it comes to handling returns, as Blackpearl notes.

These include:

  • Offering clearer returns policies (supported by 55 per cent of US consumers)
  • Introducing a maximum returns quota (supported by 40 per cent of US consumers)
  • Limiting the time that customers have to return items (supported by almost 40 per cent of consumers)
  • Introducing temporary bans (supported by over 30 per cent of US consumers)
  • Limiting offers and promotions (supported by just under 15 per cent of consumers)
  • Raising the price of items to cover the cost of returns (supported by just under 15 per cent of consumers)

When it comes to return-fraud, retailers also need to be clear in their return policy and vigilant when refunding items for gift cards or cash. Importantly staff should also be educated in these policies, and return numbers and instances should be regularly reviewed.

You can learn more about this year’s retail holiday predictions here or gain a further insight into the link between shoplifting and return fraud here.