As we make our way through the festive season, retailers are experiencing the Christmas rush - bustling crowds, higher demand, and faster stock turnaround that all mean higher likelihood of low stock, messy displays, and frantic staff.
In this environment of frantic and heightened competition, retailers need to up their game, and display compliance plays a crucial role in a business’ success. In fact, it’s crucial; according to our 2023 Unlocking the power of beautiful displays report, negative in-store brick and mortar experiences are not only considered ‘turn-offs' but can have significant impacts on brand trust. Further, it can directly impact sales streams; the report found 69% of customers will be less likely to return to that location, and 41% less likely to visit any other location belonging to that brand.
Our 2021 Displays Matter White Paper too reveals a stark reality – over half (58%) of stores fail to execute displays as planned, despite 85% of U.S. shoppers expressing a preference for 'touch and feel' experiences before making purchase decisions. The implications of this statistic are profound, considering the potential impact on customer satisfaction and, consequently, revenue generation.
The bottom line is that a mere 1% improvement in display compliance across retail could increase revenue by $3 billion per year. Beautiful displays can tempt shoppers into a space, display products in their full glory, and encourage interaction. So, amid the holiday cheer and bustling shopping centers, the importance of display compliance and visual merchandising cannot be overstated.
How can retailers hit their targets in display compliance and visual merchandising?
Firstly, a problem with display compliance is that even the most innovative displays will fail if staff are not able to merchandise and maintain them regularly. Using current systems, such as emailed planograms, manual stock floor counts, and physical audits can mean things fall through the gaps and retailers are left at the mercy of theft and shrink.
Navigating the holiday shopping rush demands a smart solution like RFID tags. This technology harnesses radio waves to identify and track objects, ranging from products to shipping containers and even people. RFID proves instrumental in enhancing inventory control and mitigating losses during the festive season. Its ability to monitor product movement, facilitate rapid and accurate inventory counts, and discourage theft positions RFID as an asset for retailers. By embracing RFID, stores can conserve resources, elevate customer service, and drive sales.
1. Minimizing the cost of tagging
Source tagging, the process of applying electronic article surveillance (EAS) labels or hard tags directly in or onto a product during the early manufacturing process, has been proven to minimize the cost of large-scale tagging and protect brand integrity.
When it comes to display compliance, source tagging garments, for example, reduces the time spent hard tagging after a stock delivery, and RFID data will show which products are most prone to shrinkage.
RFID labelling has been successfully used to reduce phantom out-of-stocks to almost zero percent, cut our labels are designed for high-speed label application, improving production efficiencies, and optimizing the performance of retail EAS solutions, ensuring products arrive shelf-ready.
RFID is a great start on its own, but when paired with next-generation inventory software, you can unlock global stock visibility and local data.
2. How to improve your inventory management with ItemOptix
Our Unlocking the power of beautiful displays report reveals that RFID inventory management software can significantly reduce phantom 'out-of-stocks' by an impressive 90%, achieve 99% inventory accuracy, and reduce operational costs by 75%. With every item accounted for, retailers can transform potential losses into revenue, so this is where ItemOptix™ emerges as a game-changer in retailers’ display compliance ambitions.
Specifically, its seamless integration, unparalleled flexibility, and impact on display compliance make it an invaluable tool for retailers aiming to keep up with the competition and stay ahead this Christmas.
3. Boosting detection with SFERO™
With garment labeling and inventory management covered, the third piece of the puzzle is loss prevention. Missing or misplaced stock can mean missing revenue and traditional loss prevention solutions can often clash with the aesthetic of the store. Large security gates and barriers, for example, work against retailers’ creative design efforts, and can be particularly overbearing in stores with small and delicate products.
SFERO™ is not just a loss prevention tool, it is a strategic asset for retailers aiming to strike the perfect balance between high-level security and aesthetics. It can boost detection by up to 95%, enabling retailers to protect products, significantly reduce shrinkage and maximize revenue, and offers flexibility that means it can be tailored to fit seamlessly into any environment.
We stand as a reliable partner, empowering retailers to navigate the complexities of display compliance and visual merchandising with confidence, ensuring a successful and joyous holiday season for both businesses and shoppers alike.
For more information on Checkpoint Systems’ approach to unlocking the power of beautiful displays, visit here: https://checkpointsystems.com/insights/report-beautiful-displays/
