Sales Strategy
The Struggles of Brick-And-Mortar Retailers in a Rapidly Changing Market: 2023 Edition January 17, 2023 (0 comments)
New York, NY--The brick-and-mortar retail industry faces several challenges as it enters 2023. As the retail industry evolves, a large number of businesses are making changes to adapt.
[Photo by Brett Sayles]
Dutch payment company, Adyen survey, polled 500 UK retailers and found that nearly half (46%) are reassessing their approach to brick-and-mortar stores. A trend among respondents was relocating from business parks and shopping centers to residential areas.
Furthermore, when questioned about the significance of physical stores in their post-pandemic business model, over a quarter (27%) stated that it would not be necessary.
An article talks about the five top challenges retailers must be aware of.
The first point discusses using jewelry stores as e-commerce hubs — a strategy where brick-and-mortar jewelry stores also sell their products online. This allows them to reach a broader customer base and increases their sales. It also enables customers to pick up their online orders in-store.
The second thing to watch out for in 2023 is soaring rent and leasehold changes. Soaring rent costs for physical storefronts and changes in leasehold agreements make it difficult for many jewelry retailers to maintain profitability. As a result, retailers are forced to make difficult decisions about closing underperforming stores and re-evaluating their strategies for physical locations.
The third point mentions expansion pressure — an ongoing challenge for jewelry retailers to remain competitive by opening new stores in different geographic locations, increasing the number of products offered, or investing in marketing and advertising to increase brand awareness. However, expanding a business can also come with challenges, such as increased costs, supply chain disruptions, and difficulty finding suitable locations and employees. Additionally, retailers must consider the market saturation in certain areas and competition from existing retailers.
Interested in learning more about the other two points. Check out the entire post.