There are risks involved in starting any business, but in today’s society, none more so than in retail. Of course, you shouldn’t let these risks put you off your dream of opening a store, but it is worth knowing what they are before investing your money into something that could cause you problems down the line.
Here are some of the risks facing retail store owners today.
Risk #1: The threat of online businesses
It’s sad to say, but many retail stores have been forced to close their doors because of the online competition. Many shoppers find it more convenient to buy items at the click of a button from the comfort of their homes. Still, there are ways to combat this. Pricing is one option, undercutting online prices through the occasional sale. Another way is to offer the benefits of a hands-on experience, something online stores will always struggle to replicate. Retail store owners should also focus on being customer friendly, assisting the customer with their shopping experience, and offering extra services, such as social areas for tired shoppers. The online threat is huge, but there is still a place for a brick and mortar store on the high street.
Risk #2: High street rivals
Not only do retail store owners face the threat of online rivals, but competition also comes from other stores on the high street. The way to counter this, of course, is to open a store in an as yet untapped area of business. If there is no competition, you are guaranteed some level of success. Still, if you do open something similar, perhaps a designer fashion-boutique with clothing you have designed yourself, for example, how do you beat the big fashion store down the road? Well, you need to get customers inside first of all, so acquire the services of somebody like D4R retail design to give you an eye-catching shop exterior and interior. Then provide the customer with unparalleled customer service, getting to know them by name, and perhaps designing something made to measure for your customers. Whatever type of store you want to open, research those other outlets and find ways to beat them in the service you offer.
Risk #3: Theft and vandalism
This is a common risk for retailers, so you do need to focus on security measures. On the inside and outside of your store you should invest in security cameras, allowing you to keep an eye on passers-by, customers, and your employees. This way, you have recorded evidence of any criminal activity that takes place in and around your store. To further prevent shoplifting, you should electronically tag your items where possible, or hire a security guard to stop would-be thieves. To alleviate the risk of vandalism, invest in metal shutters for your doors and windows, thus protecting your store after you have closed for the day. These simple measures are costly, but they are cheaper in the long run when you consider the money you will lose through property theft and damage.
Final word
These are some of the risks facing retailers today, but don’t let them put you off. Put the appropriate measures in place, and you will have a greater chance of success with your business.
