The retail industry has never been more lucrative. Thanks to technology, the sector has been revolutionised in recent years. However, while retail may be big business these days, it also faces a few significant challenges.
Here, we’ll look at some of the main challenges facing the retail industry and how they can be overcome.
Legal issues
These days, retail businesses need to follow a lot more laws and regulations than they once did. From making sure physical store premises are suitable for wheelchair users, to following complex digital laws when selling online – there’s a lot of legal issues you need to be aware of if you want to switch to working in a retail environment.
By far one of the biggest legal headaches of retail law is the integration of digital services. It’s become really important for retail businesses to at the very least, have their own website. However, smartphone apps have also become expected. The trouble is, there are a lot of legalities you need to be aware of when setting up a website and digital app. So, it’s important to make sure you seek advice and use the services of a professional where applicable to ensure your business remains compliant.
Creating an in-store experience
As customers can now buy whatever they need online, retail stores which rely heavily on physical sales need to step up their game this year. Customers now largely look to enjoy a more unique experience in store.
So, what does this mean? Well, it means it isn’t just about the purchase. After all, the customer can easily do this online. So, if they’re actually going into a store, they want to enjoy a more unique experience. This is leading to a more experiential retail phase. Stores need to focus on understanding their customer expectations and providing in-store experiences. It could be gimmicky stunts or offering in-store only benefits.
The more you can improve customer experience, the more customers you’ll actually drive to the store.
Brexit
Of course, perhaps the biggest challenge UK retailers are facing in 2019 is Brexit. It’s less than a month away now, but the uncertainty surrounding how it will play out and what will happen is still very much prevalent. There is a lot of worry in the retail sector over how a no deal Brexit could impact sales. There’s also a worry over rising costs which could be implemented regardless of how Brexit plays out.
Most notably, issues could occur within the supply chain for retail stores; particularly for those which trade within Europe. Costs could go up and access to labour may be restricted. So, the effects this could have on the sector are significant. Some retailers are starting to prepare for Brexit by stockpiling goods. This will reduce any potential downtime and allow retailers to stock up at current rates, saving them a small fortune if trading rates do increase after Brexit.
The above are just some of the challenges the retail industry is facing. While it’s never been a better time for eCommerce, actual physical retail stores are starting to feel the pressure of operating in a digital environment. The past few years have seen some major store closures and unless retail businesses begin preparing for the challenges they are facing, we’re sure to see even more closing their doors; particularly after Brexit.
