Here are some of the ways that retail stores, both large and small, are using the Net to improve their profitability.
Stores are helping customers research purchases online so that they can save time in the store and gain more satisfaction.
Several stores are tying their inventory management systems into automatic replenishment and other supply chain options. Availability is one of the most important things for customers to know. Stores that keep good inventory management can give accurate information to customers.
Stores are extending their inventory options. For example, customers in some Kmart stores can use kiosks to purchase large appliances that wouldn't be available otherwise because there isn't floor display space for them.
The issue doesn't have to be floor space, it can also be catalog space. W.W. Grainger has a catalog with 78,000 items in it. It's one of the great, fat, everybody-has-one items in American business. But Grainger's Web site is searchable and selectable for almost 200,000 items.
Retailers are using good computerized records to track customer preferences. They're also using them to tie to valued customer programs and other ways to highlight top customers for special attention.
Retail stores are using the Net to cross sell effectively.
Retail stores are using the Net to sell fill-in items. Music stores, for example, may sell a guitar in the store but sell strings and other "consumables" via the Net.
Retail stores are using the Net to extend the value of the retail experience. Information articles, how to's, frequently asked questions, and other things enhance the value of the retailer to the customer.
Retail stores are using the Net to drive traffic to the local store.
WALLY'S COMMENT ... I know you're probably getting the idea that retail store tactics involve more than just "e-commerce." Use the Net and Web to find ways to do things differently, more effectively, and more profitably.
Don't feel left out of this if you're a small store, either. While some things like massive data warehouses and super sophisticated, collaborative-filtering applications are the domain of the large retail store or chain, you can still do things to improve results. Look over the stuff we've suggested. Most of it is done with basic Net connection and Web browser options.
This article originally appeared in Wally Bock's Briefing Memo newsletter in 1999.
Reviewed: 2/15/03
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