Home > Mass-market Retail Sales: solutions for increasing margins and reducing costs

Mass-market Retail Sales:
solutions for increasing margins and reducing costs

According to the Coop 2023 report, as many as 24 million Italians struggle financially at the end of the month. In such a context, it is essential for major retail players to understand the current needs of their customers while simultaneously increasing their margins and reducing costs. Only in this way can they ensure sustained long-term growth and a stable position on the market.

The current scenario is marked by an unavoidable economic situation characterised by rising inflation and a consequent reduction in household purchasing power. However, this situation can represent an important opportunity for companies, which are driven to find effective solutions to protect their business and improve operational and financial management.

TOPIC INDEX

Where to start

The customer

The starting point for a company seeking targeted and effective solutions is undoubtedly the customer. Analysing their needs and purchasing behaviour makes it possible to identify the best system to adopt in order to increase sales and competitiveness.

Doxa conducted a survey on customer behaviour, highlighting that purchasing paths are becoming increasingly hybrid. The customer has now become omnichannel, often starting the purchase on one channel and completing it on another. According to the research, 81% of respondents check prices online before visiting physical stores, while 75% decide to buy online after entering a store (source: Doxa).
It is interesting to note that the trend towards omnichannel behaviour affects every product category, covering all sectors of retail. This study demonstrates the modern customer’s perspective: there are no separate channels, but a single large purchasing channel that is both physical and digital (hence the term phygital).

What differs are the attributes associated with the two purchasing modes: convenience and practicality for the digital channel; a pleasant multisensory experience and added value from staff assistance for the physical store. Naturally, the choice to switch from one channel to another depends on customer needs and priorities at the moment of purchase.

However, this evolution in customer behaviour is not matched by companies, which — according to 65% of Italians — fail to fully meet their need for hybrid solutions. The same Doxa survey reports frequent discrepancies between digital and physical channels, such as differing prices and promotions, which leave customers dissatisfied and disappointed.

The solution

Integrating physical and digital stores

It is clear that making the physical store omnichannel is crucial, creating a seamless combination of digital and physical journeys. The result is an improved shopping experience and the building of a trust-based relationship that will likely translate into increased sales.

Supporting the effectiveness of this omnichannel strategy are the findings of the 2023 Retail Report “Ambitions and Connections” by Adyen, which revealed that retailers implementing an omnichannel approach in 2022 recorded revenue growth of up to 8%.

It is essential to offer customers a brand image that is unified and adaptable at any moment, depending on their needs, from online to physical and vice versa.

Moreover, special attention must be paid to enhancing the features of the physical store that customers value most, such as the experience and the added value of in-person guidance from sales staff.

Customer-centric approach

Omnichannel journeys designed to meet customer needs.

Phygital experience

Integration between the physical store and digital touchpoints.

Smart digitalisation

Interactive tools and targeted communications.

Efficiency and margins

Improved efficiency and reduced operational costs.

The Tool

Digitalisation is essential to increase margins and reduce costs

One of the most effective solutions to transform a physical store into a phygital one is the implementation of digitalisation. Innovative and decisive tools such as digital signage and electronic shelf labels can make the point of sale perfectly aligned with customer expectations and needs.
These advanced solutions enable the creation of multiple personalised offers, cutting-edge shelf communication capable of providing detailed and comprehensive information, and an optimisation of store management processes.
For example: multimedia displays enhance the customer experience; interactive totems entertain shoppers; electronic shelf labels make it possible to apply crucial dynamic pricing strategies while freeing staff from numerous tasks, allowing them to focus more on customer support.
All of this contributes to increasing the store’s efficiency and productivity, enabling cost optimisation through innovative and smart process management.

IN CONCLUSION

Investing in innovation to achieve higher margins and lower costs in the retail sector

To increase margins and reduce costs in the mass-market retail sector, it is therefore essential to adopt and invest in innovative solutions capable of becoming true drivers of growth and success.
In an ever-evolving market, where consumers are increasingly attentive to new technologies, staying up to date and offering innovative, efficient shopping experiences is crucial — as is optimising sales processes by reducing operational costs.
Transform your store and allow your customers to enjoy hybrid and exclusive experiences. It is time to embrace digitalisation and seize all the opportunities it can offer you.

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