The Retail Channel is one of the most important and fastest growing segments in today’s retailing.
With most retail chains experiencing varying degrees of economic duress, including some that have gone out of business in the past, there has never been a greater need for cost effective ways to increase sales. While the consumer may be tumbling down on the spending curve, the savvy shopper knows that savvy buying means looking for bargains at the best retail outlet. With this in mind, the savvy shopper looks for outlets that offer discount or cash-back merchandise. These bargain hunters will then move on to other retailers looking for even more discounts on their next purchase.
One of the most effective ways to find discount or cash-back merchandise at an online retail outlet is by utilizing the Retail Channel.
By partnering with online merchants or wholesalers that have retail outlets all over the country, as well as outlets located in multiple shopping districts, retailers can increase their customer reach. This not only helps the retailer control expenses but also increases the likelihood of new customers making a purchase from an online retail outlet. By partnering with companies that have physical outlets, the Retail Channel gives the retailer the opportunity to expand into other areas of the country.
Many consumers prefer to shop at a discount outlet store.
Often, an outlet location is preferable because it offers more products in a single location. Some chain stores offer a huge variety of discount or sale items all under one roof while independent retailers have smaller aisles with fewer choices. In addition to being able to purchase the same items from one outlet location as from another, customers can be assured that each location offers the same quality, selection and price. For shoppers, who do not want to shop at each location, chain stores often have a website that displays specials and discounts over multiple pages.
The idea behind using the Retail Channel to increase sales is to create a “synergistic” effort between the retailer and the online merchant or wholesaler.
Often, retailers that offer a consistent discount or special promotional deal will attract more traffic and, in turn, increased sales. A wholesaler can offer the same deals at a lower rate or better price than a retailer with no relationship with them. By using a retail outlet, both businesses can increase their profits and market share.
There are many ways that an individual or business can gain from owning a retail outlet.
First, a retailer can offer an exclusive brand of merchandise at a discounted rate. This can be particularly beneficial for discount stores, specialty stores or online merchants. By offering a name brand and quality product at a lower rate, the retailer can generate a loyal customer base that will keep buying from them. In addition, some businesses offer financing or leasing options to help offset the initial costs of opening and operating a retail outlet.
There are many types of retail outlets including apparel stores, apparel suppliers, dry cleaning establishments, dollar and discount shops, medical supply stores, discount clubs and toy stores. With many of these types of retail stores, the customer is exposed to a large selection of products at a substantial discount. Many customers shop at these stores for unique or unusual items. Another advantage is that these stores have established themselves as local stores, which increase their customer base and sales. The local discount store may also be the favorite hangout of a family.
While an outlet is a good source of new merchandise, it can experience slow or very low sales if it does not contain a strong reputation.
There are a number of ways to determine whether or not an outlet is a good choice. For example, some customers may be turned off by an outlet that does not accept walk-in customers, does not display merchandise in its best light or is only selling a small selection of merchandise. This is especially true of specialty stores. Finally, a customer should research an outlet before making a purchase to see if the employees are courteous and the atmosphere customer friendly.
The retail industry continues to grow at a rapid pace. As competition continues to increase, retailers must decide how to remain relevant in this tough business climate. Many traditional outlet stores have already gone out of business because they did not embrace the modern trends in retail. For those that survive, they must adapt to change or they will go out of business themselves.