The retail business concept is more than a hundred years old. As, all business and brands do rely on retail store business. However, with the introduction of technology the scenario is changing rapidly. In some businesses the condition even gets worsen, that they had to go for bankruptcy. From the beginning of the 21st Century, the concept of retail store has seen an enormous amount of expansion, but now the retail business facing downfall. Let us, analyze the reasons responsible for retail business facing downfall and how the retail business market can be revived.
Reasons Responsible for Retail Buisness Downfall
1. Online Shopping (E-Commerce)
Online Shopping has come-up as a boon for customers however, due to this the retail business has been affected a lot. Keeping pace with the changing technology is becoming a great challenge for retailers to sustain into the market. E-Commerce offers a great amount of flexibility to the customers therefore, the customers are heading towards e-commerce instead of retail stores. This is one of the biggest reasons responsible for diminishing of retail business among the customers.
2. Unadaptive towards Technology
As the time is changing the market trends and customer needs also get evolved. So, a retailer needs to update his marketing strategies and follow the latest trends to attract customers. These changes provide a new customer experience which makes customers to visit stores and explore new things. As, retail stores owners are having careless attitude and unadaptive towards technology. This also affects the sales of retail stores adversely.
3. Less Revenue, High Rent
During the 80’s and 90’s renting a retail store at a high profile location doesn’t cost too much to the owner. However, with changing trends and evolving market, renting a store at the same location costs 4 to 5 times more to the owner, whereas, the revenue generation hasn’t multiplied so much. These high charges are putting a hole in the pocket of the retailer. Therefore, the less revenue and high rent charges are demotivating retailers to go into the same market place or expand business at the same pace.
4. Changing Customer Expectations
Customer preferences used to change with time. So, a retailer needs to evolve his marketing strategies and understand the customer needs as well. Everything needs innovation and meeting customer needs in an innovative way is always welcomed by the customer.
5. Retaining & Engaging Employees
For any business sector, retaining staff is one the toughest job to perform. As well as, replacing employees makes loss of a substantial amount of energy and revenue as well. Therefore, a retail business needs to take care of its employee and assure them to sustain for a longer period of time with the brand or business. So, every retail or franchise business owner needs to concentrate over retaining employees for a longer period and minimize expenses.
6. Negligence over Retail Store
Negligence of the retailer over maintaining customer relations and meeting customer expectations also leads to the business loss. Therefore, it is very important for a retailer to be attentive and analyze the business trends. Analysing market trends and updating the marketing strategies will definitely boost the business.
7. Overexpansion
Many businesses start off well but soon go for business expansion in the form of a new retail store or a franchise store. However, this requires sheer precision and proper planning. So, expanding business too much or too rapidly might arise a great risk for the business. It is always very important to analyze the market, do a proper research over the specific market area, then only go for the expansion. In addition to this, the retailer needs to always be ready to face the losses as well.
8. Bad Management or Leadership
Any small or big business requires a good management and a great leader who goes by with examples. As well as, a manager or leader needs to be experienced and properly aware about the specific market and the latest market trends as well. However, bad management or leadership could cost a lot to the retail or franchise store. This might also end to the business failure and loss of revenues as well.
9. Fraud
As a matter of fact, fraud is something which exists in every sector but varies over its intensity only. The fraud can be committed by anyone i.e. manager, employee, customer, business partner, or even the vendor. The worst part in this that, no any company or retailer can escape through it, so always be prepared for such incidences. Try to opt for insurance policies to avoid suffering from huge amount of losses.
10. Loss Capital due to various reasons
The loss of capital in the form of cash or assets could cause a big blow to the business. It might be caused due to some disaster whether it is natural or man made, can result into a great asset and capital loss for the business. This type of loss can occur in any type of business whether it is retailer, franchise, a big brand or any type of business occur. No business can escape from any type of natural or man made disaster.
How Retail Business Market can be Revived?
Intially, retail business can be get into the track, just by following the latest trends available in the market. A retail business needs to absorb the changes and try to reflect those changes in his business in an innovative way.
Secondly, the business needs to follow the trend of business automation as well. Hence, taking business online is the latest fashion and in-trend demand of every small or big business. However, business automation costs a lot to the business, but this can be done at very less expense as well. The sole destination which allows business convert into e-commerce site and in such a cheap expense is “BS PLUS Retail” business software.
BS PLUS Retail is a business software which provides a platform to all the small, medium and franchise businesses to take their business online and become an e-commerce service provider. This eases the business flow and makes your business reach a wider area and provides a platform for customer satisfaction. The software is equipped with 30 unique features, which provides a complete solution to the business in a go. The software allows management of customer, stock, cash, invoice generation, automated customer assistance, multiple mode of payments, and many more facilities too.