Post-Pandemic Retail Trends

Post-Pandemic Retail Trends

A lot has changed over the last two years. When the pandemic started in 2020, retail was heavily affected. Now that we are in a post-pandemic world, retail has once again changed. Some trends from the pandemic are sticking around, and some are not. In today’s blog we are going to go over several post-pandemic retail trends.

Post-pandemic inflation affects spending

We’ve touched on inflation affecting consumer spending. The early months of the pandemic saw an increase in spending by consumers. However as interest rates and inflation continue to increase, consumers are making mindful decisions to cut back on spending. Although the lipstick effect continues to explain why small luxury items are continuing to sell, discretionary spending is decreasing overall. Consumers are spending less and less on things such as clothing and meal kits.

Brand loyalty is shifting post-pandemic

Brand loyalty in post-pandemic retail
(Source)

Younger consumers are leaving brands they were once loyal to. 39% of consumers (mostly Gen Z and Millennials) have left behind trusted brands to try new ones. At the same time, older shoppers are prioritizing convenience and supporting more local businesses. The bar is higher than ever to earn brand loyalty today but it’s still important to retailers everywhere.

One of the most powerful tools for earning brand loyalty is a loyalty program. These programs actually make 60% of global consumers into brand loyalists. But instead of simply discounts, consumers are increasingly saying that loyalty is about ‘exceptional experiences’ or a ‘sense of trust.’

Store-ception (stores within stores)

Apple store within Target
(Source)

Another trend which is gaining more traction are stores within stores. Now that people are physically shopping in stores after the pandemic, this trend is big! A common example of this is the beauty counter within a pharmacy. Usually these spaces have lighting catered to beauty products and special signage.

Since stores have reopened, this trend is skyrocketing. Brands such as Target now have small Apple stores within their stores at multiple locations. This gives retailers the boost of “subletting” floor space to an aspirational brand with it’s own established customer base. This attracts more foot traffic and gives shoppers a better in-store experience.

Home investments are slowing down post-pandemic

A couple taking a home improvement project
(Source)

Traditionally during a recession, people are more likely to “nest” and spend more time at home to save money. This recession will be different though as shoppers everywhere are tired of isolating at home after several years of lockdowns. The traditional boom in home products happened early on during the pandemic. As as result, shoppers have already invested in their homes and the demand for products and brands related to nesting has been on the decline as consumers return to stores, restaurants and travel.

As shoppers have less disposable income and have already spent money on home improvements – the nesting boom is coming to a halt. Although there are less people willing to spend on home improvement now, the people who are able to spend are going to spend more.

A focus on healthy living

Unsurprisingly, there is increased interest in personal wellness post-pandemic. During the pandemic, products related to outdoor fitness and healthy living were in high demand. Luckily for retailers in health and wellness, this trend is still strong amongst shoppers as the pandemic has reminded everybody about the benefits of healthy living.

The focus on healthy living extends to food and drinks. While normally alcohol consumption increases during a recession, over-indulgence during the pandemic has lead to an overall decrease in alcohol consumption, particularly amongst high-income or young consumers.

The changing role of e-commerce

E-commerce was all the rage during the pandemic. With stores closed everywhere, shoppers had no choice but to shop online. But e-commerce is more than just another sales channel. These days, it is also a key marketing tool.

As shoppers have returned to stores, retailers have downplayed e-commerce sales as they tend to have lower margins. According to Google, 46% of consumers will check online for product availability before purchasing anything in-store. While in-store, these customers are also more likely to make impulse purchases which are often higher in margin.

Another growing trend, is the use of physical stores to showcase products for online purchase. Similar to traditional “showrooms,” guideshops or showroom-like stores cater to consumers who prefer to visit a store before purchasing a product online.

Omnichannel is becoming the standard

Throughout 2022 we’ve been emphasizing that customers want convenience. The flexibility that omnichannel delivers is a powerful way to offer convenience to consumers. Buy online pickup in-store (BOPIS) is being used more and more every day. In post-pandemic retail, stores with true omnichannel operations are the most successful as retailers today need to sell wherever shoppers want to buy. Omnichannel strategies lead to 80% higher rates of store visits. People want to be able to start their purchasing journey online and finish it in-person (or vice versa).

Post-pandemic omnichannel retail
(Source)

Better customer relations via technology

Omnichannel retail platforms allow store owners to save data about their customers. This data can then be used for personalized marketing materials which is more effective at driving sales.

Take a look at this article on some top omnichannel trends to look out for this year. If you are interested in implementing an omnichannel strategy for your store, the best place to start is with an omnichannel retail management system.


Join the omnichannel revolution today. Share your products online, sell online, nurture customer relationships, and drive more visitors in-store with TAKU Retail. Learn more today by clicking below.

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Sell More: 3 Thanksgiving Marketing Ideas For Retailers

Sell More: 3 Thanksgiving Marketing Ideas For Retailers

Fall is fast approaching, and for Canadian retailers this means gearing up for the Thanksgiving long weekend. 

Although Canadian Thanksgiving isn’t as closely associated with shopping (compared to the U.S. holiday), retailers can still create a unique experience for shoppers. 

Keep reading to find out how you can gobble up your fair share of sales this Thanksgiving weekend. 

3 Thanksgiving marketing strategies to Help you sell more

1) Have an attitude of gratitude 

Retail sale

Thanksgiving is the ideal occasion to express your gratitude to shoppers. At the same time, it’s an opportunity to excite them with upcoming Thanksgiving promotions and discounts. 

So thank loyal customers for their business by offering them something in return – in the form of special deals, coupons, or gifts! The following is a list of possible promotions you can run during the weekend: 

A Free Gift with Every Purchase: This promotion type encourages shoppers to make a purchase by offering more value for the same price. In order to create a sense of urgency among customers, retailers should stress that the promotion is limited and exclusive. Meaning that the gift is only offered for a certain period of time and until stock runs out. For example, think about using the words “while supplies last” or “offer valid from October 6-14” on your promotional materials. 

Percentage Discount: This is the most straight-forward and popular promotion type. Seasonal discounts help attract new customers and get rid of slow moving or seasonal stock. 

Buy One, Get One Free: Studies show that offering shoppers something for free is oftentimes more effective than a discount. You can pair high-margin items with slow moving stock. Or, you can increase the amount of items required in the promotion. For example, “Buy 3, Get 1 Free”.  The Body Shop is a retailer that frequently and effectively employs this promotion strategy. 

Offer treats to show your appreciation: You could offer some Thanksgiving treats in-store to your customers. Things like cookies or pumpkin pie slices are a quick and easy option to show your customers you are thankful for their support. Besides a delicious treat, customers will associate the wholesome feeling of gratitude with your store.

Thanksgiving marketing idea: offer thanksgiving cookies
A cute and quirky Thanksgiving cookie, recipe here

Gratitude in your messaging too

The attitude for gratitude shouldn’t end at your sales strategies. Practice gratitude in the messaging throughout your store and to your customers. Making sure your loyal customers understand your gratefulness towards them is an amazing way to make these customers feel special. Use sentences that express thankfulness throughout your store and adverts. Sentences like the following:

  • Thank you for supporting us!/ Thanks for your support! (this one is a great little message to add on your store receipts)
  • We love our (your brand name) family! Thank you for sticking with us!
  • We’re here because of you, thank you!

Once you’ve gotten your promotion strategy in place, make use of digital marketing tools to spread the word about your’s store Thanksgiving promotions. An email marketing campaign and social media are both effective tools that will help generate a buzz and increase foot traffic for your store. 

2) Thanksgiving email marketing

thanksgiving email marketing

Email marketing is a cost-effective way to reach shoppers and drive store sales. According to Hubspot, email generates $38 for every $1 spent

Listed below are best practices to follow for creating an email marketing campaign that converts subscribers to shoppers: 

  • Include an incentive in the subject line. Many business owners overlook the importance of email subject lines. If your email headline does not grab the attention of shoppers (even if it is drafted to perfection), it is unlikely that anyone will open it. By including an incentive in the subject line, you can improve your email open rate. An example of a compelling, incentive-driven subject line is,”35% Off Thanksgiving promotion starts tomorrow”. 
  • Get the timing right. Thanksgiving is a busy time for most shoppers. On top of that, most people are expecting a bombardment of holiday emails (Halloween, Black Friday, American Thanksgiving, Cyber-Monday etc.). That’s why retailers can expect lower than average open and click through rates in November. So it’s important to start your email marketing campaign at least a week prior to the Thanksgiving weekend. Earlier in the week is also proven to be better for email campaigns – with Monday having the highest open rate
  • Personalize the email. You can do so by including the shopper’s first name in the email or subject line. Personalized subject lines are 26% more likely to be opened

3) Give back to your community

thanksgiving marketing through charity

There are many ways to give back to the community this Thanksgiving season. 

One way is to partner up with a local food bank by holding a canned food drive at your physical storefront. Not only does this showcase your store’s community support, it also helps drive foot traffic to your store. Create incentives for shoppers to donate by giving a % discount to every shopper who drops by your retail business with canned food. 

You don’t necessarily have to partner up with a food bank either. Think about teaming up with a local organization that is related to your business. For example: 

  • A pet food store could partner with an animal shelter. 
  • A women’s clothing store could team up with a domestic violence shelter in the area. 
  • Health food stores could work with local homeless shelters.  

Supporting a cause that both you and your shoppers believe in will help you build brand awareness and create new marketing opportunities for your retail business. 

Bonus tip: use Thanksgiving hashtags

Make sure you are using relevant hashtags in all your digital communications! This allows you to reach more people who are looking for Thanksgiving related stuff. The following hashtags are great for the holiday:

#Thanksgiving2022
#Thanksgiving
#Thankful
#ThanksgivingWeekend
#Gratitude
#Thankfulness
#TurkeyDay

Get Ready For Halloween and Black Friday

Remember, Thanksgiving sets the stage for Halloween and Black Friday – two of the biggest shopping days of the year. So it’s a great opportunity to generate a buzz and get shoppers excited for upcoming promotions and deals! 


Did you find this article helpful? We will be posting more holiday marketing tips in the upcoming weeks. Subscribe to our blog to stay updated!  

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Recession-Proofing Your Business: What Sells During A Recession?

Recession-Proofing Your Business: What Sells During A Recession?

Welcome to part 2 of our Recession-Proofing Your Business series. In the first part of this series we went over strategies that retailers can use to handle the recession. Some of these strategies included:

  • How to use software automation to reduce operational costs
  • How to reduce inventory based on changing customer needs
  • How to improve your relationship with customers.

In this blog, we will explain why consumers needs recession-proof products.

What are recession-proof products?

As the name suggests, recession-proof products are items that traditionally sell well during a recession. These are the type of products that people will keep purchasing even when money is tight. Here are 4 ways to tell if a product is recession-proof.

1. Inelastic demand

Elasticity with products or services is a way of explaining how shopper behavior changes when retail prices and household finances change.

When something has elastic demand, it means that any small change in price or the economy will have a big impact on whether customers will change the way they shop. The best examples of this are discretionary products. This is products that are not essential such as clothing or vacations. When the price of these items increase or people are short on money, more people will buy less clothes or take less vacations.

In comparison, products with inelastic demand are things shoppers will keep buying, even when retail prices increase or they are short on money. These products are usually seen as ‘essential‘, without any good substitutes. Products such as prescription drugs, tobacco, salt or mobile phone plans are good examples.

Maselow's hierarchy of needs
Maselow’s hierarchy of needs (Source)

Remember that essential products aren’t always things needed for survival, but they are products that shoppers feel they cannot stop buying. This can include products that comfort people during difficult economic times such as recreational products which satisfy certain emotional needs. Maselow’s hierarchy of needs above is a good way to think about whether a product you sell is inelastic. Products that satisfy needs higher up in the pyramid are more likely to be inelastic and harder to substitute.

2. A easy way to escape

Escapism art
(Source)

Uncertainty during a recession can lead to a lot of stress and anxiety. People will be looking for ways to escape from these tensions. So products that entertain people and help them keep their mind off of things often sell well during a recession. TV streaming, video games, junk food, alcohol, and similar products are examples of this. In the last part of our Recession-Proofing Your Business series, we touched upon the idea of the lipstick effect. This is a great example of how people shop based on the need for escapism and comfort during a recession.

3. Whether a product can be stocked in bulk

Canned food stockpile
(Source)

Whenever there is inflation, people want to stock up on certain products to avoid paying a higher price in the future. As a result, every day essential products with long shelf life will do well in a recession. As long as supply is reliable, essential products such as canned foods, rice, toilet paper, dish soap or instant ramen noodles that can be sold in bulk will continue to sell.

Encouraging shoppers to stock up on shelf stable products is known as stocking the pantry. By selling products in bulk, even at a lower price, retailers make marginal profit on the same sale and limit the space available in a household for shoppers to stock competitive products.

4. Seen as a lower-cost option

If you sell elastic products (non-essential products), it’s always a good idea to offer lower-cost options during a recession. This can be something as simple as smaller sizes or features. Making a smaller sale is still better than losing a sale completely. As long as you are clearly communicating how features vary between differently priced options, you will still be able to offer higher value products for those who can afford it.

You can also use the Apple’s Goldilocks strategy. Placing an expensive option next to a decently-priced option makes the cheaper one seem like better value.

Here are a few examples of how smart retailers are offering wallet-friendly versions of popular products during these inflationary times.

Flonase - the lower cost option
Retailers sell two versions of the Flonase nose spray. One with 72 sprays and one with 144 sprays. Giving consumers a choice between spending more to get more uses, or spending less. (Source)
Sales prices to illustrate anchoring
Uniqlo uses the idea of the Apple’s Goldilocks strategy here. Where you show an item at a higher price right next to a cheaper item. The more expensive product doesn’t look much better than the sale item, so consumers feel as if they are getting a great deal. (Source)

This is the same, even if you sell services or subscriptions. For example, it’s a good idea to offer lower cost subscription plans to avoid cancellations. The best example of this is what Netflix has done recently with their new ad-supported tier. By offering a downgradable plan, more shoppers will keep Netflix versus cancelling their subscription.

Tiered pricing for Netflix
Netflix Canada’s pricing table for the different tiers of membership (Source)

Recession-proof product categories

Now that you understand some of the reasons that drive shoppers to buy during a recession, let’s take a look at some examples of product categories that sell well when times are bad.

Food

This one is obvious since people need food to survive. As we said earlier, food that has a long shelf life will perform better when times are tough. The demand for cheaper food will always increase when shoppers are looking to save money. Of course a recession won’t stop consumers from purchasing food, but you can expect shifts in the type of food they will choose to spend on. If you’re a grocer or you sell food at your store, take the time to consider how to change your product line to meet these new shopper needs.

Self-care products

Collage of various self-care products
(Source)

Products for personal hygiene, self-care, and beauty have historically done well during recessions. This is thanks to the lipstick effect. However some of these products are also necessities, such as: toiler paper, soap, towels, etc. These products are needed by consumers and demand will generally remain stable.

DIY products

DIY lifestyle products also do well during recessions. This includes products that help improve your home (e.g. gardening tools, drills, hammers, nails, lawnmowers, etc.). Other examples include DIY products that give people an affordable creative outlet such as home decor projects or hobbies. It also allows consumers to save money as they will not want to pay a service for things like home maintenance during a recession. After all, DIY is a form of escapism and helps people de-stress.

Pet products

Pet food next to a dog and cat
(Source)

Pet products are strong recession-proof items as people consider their pets as members of their family. So they are not going to be forgotten during a recession. Especially essential products for those special family members. These include: food, litter, treats, and waste removal bags. Pet products will remain inelastic in demand throughout a recession.

Recreational products

A physical film collection in a store
(Source)

Once again people’s need for escapism helps another product category remain recession-proof. Recreational products are a staple during a recession. Lower-cost recreational products perform even better. A deck of cards, board games, cheaper video games, and cost-effective movie streaming are all examples of great recreational products. However these recreational products don’t only have to be in-home options. People will look for way to escape outdoors as well, sports equipment and camping gear are other great recession-proof products.

Off-price products

A discount tag on clothing
(Source)

Off-price retailing is the strategy of buying out-of-season or overstocked branded products and selling them at heavily discounted prices. Off-price shopping increases during recessions so if you have any distributors or suppliers willing to sell you their extra stock at a lower cost, you can also look at offering branded products at prices below MSRP.

Conclusion

Now that we’ve gone over product categories which have historically done well during a recession, you should review your own product mix to determine if you’re selling the right things during these tough times. If you are seeing success with other categories, please feel free to share your thoughts with us below in the comments.


To deal with a recession, investing in tools that optimize your operations is key. TAKU Retail is helps you manage your entire store and ecommerce operations, all under a single login. At the same time, we’re constantly adding new features to help our merchants deal with labor shortages. Click below to learn more about our new self-checkout feature to sell more with less staff.

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Retail Brick And Mortar Stores Are Here To Stay

Retail Brick And Mortar Stores Are Here To Stay

The rise of e-commerce during the pandemic has led many people to believe that that physical retail stores will soon be a thing of the past. After all, e-commerce feels more convenient as you can shop from the comfort of home. Even Google has seen an increase in the number of people wondering whether brick and mortar stores are dying.

Google search showing "are brick and mortar stores dying" as a popular search
Many people are wondering if physical stores are dying

We’re glad to report that, like many future predictions, the reality is a lot less scary. As post-pandemic studies and recent data has shown, physical retail is still thriving and here to stay.

E-commerce is not the only future

eCommerce artwork
(Source)

While e-commerce grew in popularity during the pandemic, post-pandemic statistics show that people are returning to their old ways. E-commerce sales in 2022 have slowed down. Some of this is likely pent up demand for shoppers who missed shopping in person during the pandemic. But according to research, 59% of shoppers do not trust internet-only brands. At the same time, e-commerce only companies continue to struggle to turn a profit. Many companies who bet on an e-commerce only future are now paying the price.

Brick and mortar retail stores are continuing to grow

Brick and mortar stores on a main street
(Source)

Even after all of the COVID-19 lockdowns, brick & mortar retail stores are thriving. In fact, for every brick and mortar business that shut down, two more businesses opened up. On top of that, sales in physical retail have actually gone up post-pandemic. In-store shopping has seen a 13.7% boost compared to pre-pandemic levels. This growth doesn’t just apply to big names like Walmart, but to small independently owned businesses as well! In fact, over 60% of small businesses are expected to grow their revenue over the next year. This is a trend that can be seen from pre-pandemic statistics as well. Reports show that between 2016 – 2021, the revenue of smaller retailers grew at an average of 51.33%.

And certain consumers actually prefer in-store shopping. The majority of Boomers and Gen X customers say that they shop in-store “all the time”. In fact, younger people such as Gen Z (along with Gen X) are two generations that actually shop more in-person than online. For them, their entire lives are already digital and physical retail appeals to them as experiential shopping

The shopping experience is too important

Woman trying on clothes before purchase at a brick and mortar store
(Source)

Another key reason why brick & mortar stores still appeal to shoppers is because it is still by far a better shopping experience. At the beginning we mentioned how e-commerce provides a certain level of convenience that physical retail can’t. Yet when it comes to immediate consumption, this is something that only physical shopping can offer. There is a level of satisfaction one can feel shopping in-store and taking something home right away. This is why the term retail therapy exists.

But beyond immediate satisfaction, shopping at brick and mortar stores allows customers to get an engaged shopping experience that they simply can’t find online. Being able to physically hold a product and sometimes try it out before purchase is a big factor in deciding to buy something. 59% of consumers say that the ability to try, touch and feel a product is key for in-store shopping over online.

Man using TAKU Self checkout

And when shopping in-store, one of the top priorities for shoppers is convenience, especially at checkout. After all, 97% of consumers have backed out of a purchase due to inconvenience. So if you are in or planning to enter the physical retail industry, be sure to offer easy checkout options. Things like self-checkout enhance the shopping experience for customers greatly.

The future is omnichannel

Omnichannel Management Diagram with TAKU Retail

Throughout this post, it may have felt like we are saying that e-commerce is worse than physical retail. However, the future of the retail today is really a combination of physical and digital shopping. As we mentioned before, consumers want convenience. Omnichannel offers the most convenience to consumers as it allows them to shop from anywhere, 24/7. There’s a reason why 58.6% of retailers are heavily investing in omnichannel fulfillment and 70% of small businesses have adopted digital tools over the past year.

The benefits of omnichannel aren’t just for customers either. Retailers are able to have more control over their business and sell more when they offer omnichannel shopping. After all, retailers who don’t sell on multiple channels end up missing out on ~30% of sales.

Being able to serve your customers in a variety of channels will soon be the standard in retail. For e-commerce, store pickup or fulfillment of online orders from local stores support main streets, is better for the environment and get products to customers faster as delivery costs increase. In order to keep up with the future, your retail business needs to be an omnichannel one.


Now, more than ever, is the best time to invest in omnichannel! Make sure your business is future-proof by implementing software that can support your business over time. Check out TAKU Retail and ensure your business is resilient and able to serve customers the way they expect to shop today.

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4 Ways QR Codes Can Help Retailers

4 Ways QR Codes Can Help Retailers

Invented in 1994, the QR code was originally made so that Toyota could track car parts in their manufacturing process. 28 years later, QR codes have become so much more. In particular, the COVID pandemic helped popularize the use of QR codes in businesses everywhere. Whether you’ve seen it being used by shoppers adding social media accounts or to view a digital menu, it’s an increasingly common tool that retailers can use to speed up service and improve customer experience. Here are 4 different ways QR codes can help retailers.

1. Attract more shoppers to your website

Drive more website traffic with QR codes
(Source)

QR codes can look like a complicated barcode but they are actually an image of information. For example, you can store everything from phone numbers and documents to website addresses. But sharing websites and social media accounts is definitely the most common use for QR codes. By adding a QR code to any marketing materials or signage, you are giving shoppers the fastest way for them to access your website or social media accounts. Instead of typing addresses or searching for accounts, shoppers can simply scan the QR code with the camera on their phones and access your information in 1-click.

Expert Tip!

QR codes do not need to be limited to physical materials. QR codes can also be placed on things such as email signatures, profile pictures, and social media covers.

By making it easier for shoppers to get access to your online storefront and social feeds, you will attract more shoppers to your business. After all, being found online or having an online storefront will not only increase your online sales, it helps drive foot traffic back to your physical store as shoppers have an easy way to stay up-to-date on new product launches, special offers, etc.

2. Sell from your shopfront window

Barber shop using a QR code on its storefront window
(Source)

Another way QR codes help retailers sell is to make it easier for stores to sell things from their physical shopfront window. For example, adding QR codes next to products that are displayed in your shopfront window that link to each specific product in your online catalog. This gives shoppers an easy way to scan a product to find out more or even buy online, even when your store is closed. Doing this makes your storefront window more engaging and informative – both of which are important for good customer experience.

3. Get more social media followers

Gain new followers with QR codes
(Source)

Many retailers today use QR codes to make it easier for shoppers to follow their social media accounts. Since QR codes are scanned as website links, shoppers can easily open your social media accounts with 1 click. Making it easier for people to find your accounts will increase the likelihood that they will follow you. Place these QR codes anywhere customers and business partners can see them (email signatures, profile pictures, in-store signs, counter stickers, etc.).

4. Give fast access to free WiFi

Give fast access to free WiFi with QR codes
(Source)

One of the best uses of QR codes is to give shoppers 1-click access to guest WiFi in the store. You can create a QR code that store visitors can scan to be automatically connected to your guest WiFi. This is a special type of QR code that automatically enters the network name and password into an iPhone or Android mobile phone. Shoppers love it as it means no more entering network names or long passwords. It is also better for your network security as you don’t need to disclosing the actual password.

If you want to encourage shoppers to browse, offering free guest WiFi is a great way to get shoppers to stay for a longer time in your store. It doesn’t cost you anything and it’s been shown that shoppers that stay longer in a store buy more things and spend more money.

Scroll down to learn how to create your own WiFi QR code.

How to create QR codes

QR codes are very simple to create. All you need is online QR code generator to make them. When using these platforms, creating your QR code is as simple as pasting the website address you would like customers to open. Then press the generate button, and congratulations you will have just made your first QR code!

A. Standard QR codes

Standard QR codes for retail
Creating a QR code on QR Code Monkey

For standard QR codes, we have two recommendations: QR Code Monkey and QR Code Generator. QR Code Monkey is a great free option. QR Code Generator offers a few more features and even has a premium membership. Both of these tools let you add colors and even a logo to your QR code.

B. WiFi QR codes

WiFi QR codes for retail

The main difference when creating QR codes for WiFi sharing is that the code generator needs to support WiFi information. A good tool for this is QiFi.org which was built specifically for this.

All you need to do is enter the SSID (network name) and password for your guest WiFi network. You may also need to enter the Encryption type, so check your Wi-Fi settings if you don’t already know this. Once all of the information is entered, click Generate to produce the code.

Expert Tips!

1. For better security, always create a separate guest WiFi from your main WiFi network so that you have separate password access.

2. For better security, always make sure that you hide the password so that it cannot be seen in the user’s phone. With QiFi.org, fill the Hidden checkbox before clicking Generate.

3. Always test your QR code on your mobile phone before printing any marketing materials or sharing it to make sure it is working properly!

Now you know some ways QR codes can help retailers. Time to start implementing this popular technology to your business. You can follow one of the tactics we mentioned, or get creative and try your own tactic. If you end up coming up with your own QR tactic, please feel free to share it below in the comments!

Google SWIS integration for Online Catalogs
Recession-Proofing Your Business: How Retailers Can Weather The Storm

Recession-Proofing Your Business: How Retailers Can Weather The Storm

Don’t let uncertain headlines give you the wrong impression, we are most certainly heading into a recession. With the IMF reducing their global GDP forecasts, there are tough times ahead. This can be a worrying time for business owners. But going through a recession doesn’t have to be as scary if you can prepare your business for it. Recession proofing your business today will make it much easier for you to ride out the storm ahead. This is Part 1 of TAKU’s series on recession-proofing your business.

What exactly is a recession?

A recession is a drop in economic growth in a country for at least two quarters (or 6 months) in a row. The drop in economic growth is calculated by GDP. Some people say that GDP does not truly represent the health of an economy. However, it is still a good indicator when to expect a slowdown. If you look at the graph below, you will see that Jan 2022 to June 2022 were the first periods of economic decline since the start of the pandemic.

This chart shows that the 2 quarters of 2022 have had drops in economic growth – officially making this a recession. (Source)

How can you recession proof your business?

Combatting declines during a recession
(Source)

Knowing that your business will face a decline in sales or a lack of access to outside financing, we can begin by developing a game plan to recession proof your business.

Find ways to save money during a recession

More and more businesses will have cash troubles as the recession continues. So it is crucial that you consider ways your business can save money. Here are some tips regarding saving during a recession:

Reduce unnecessary costs

Ron Swanson excited to slash budgets
(Source)

As a retailer you may be paying for services and products that are not essential to your business operations. It is important to take a look at the costs for your business and figure out which things you don’t absolutely need to keep your business running.

While you will want to review every single expense, it’s important to remember that the best way to stay profitable is to focus more on tools or services that help you sell more or save more money. This means, if you have to decide between buying a scale or running an ad campaign, you’re better off spending on digital marketing to keep sales up and possibly even grow market share when your competitors are pulling back.

Renegotiate for the recession

Business people negotiating recession terms
(Source)

One of the few good things during a recession is that demand will fall on things such as marketing spend. This can be good for your business as your competitors are spending less while it will cost you less to run ads.

At the same time, as demand for some services or products fall, when it’s time to renew a contract, make sure to try to negotiate for better rates or at least lower increases during these inflationary times.

Reduce higher interest debt

Man who is free of debt
(Source)

Debt is often unavoidable when you’re running a business. But in these times of higher interest, all debts aren’t equal. Make sure that you’re familiar with the interest rates, fees and due dates associated with the debt you’re carrying. When paying down debt, always pay down higher interest debt such as credit card balances first to minimize the amount of interest you’re paying.

Reconsider big one-time investments

Businessman considering his options
(Source)
Look at return on investment

Investments are always necessary to maintain and grow businesses. But similar to what we’ve said about debt, all investments aren’t the same. The most important thing for any investment is to consider the return on investment. Return on investment refers to how long it will take for you to recover the cost of the investment. And usually ROI is best on purchases that help you optimize profitability by increasing sales or reducing your operational costs.

Pay monthly instead of upfront

Another thing to consider is whether or not what you’re looking to purchase is available on a monthly basis. This is particularly true with technology solutions. While it can appear to be cheaper to make a one-time purchase when buying software, the reality is that technology moves quickly and technology solutions that charge on a monthly basis offers a number of benefits:

  1. Significantly lower upfront costs. In these inflationary and recessionary times, cashflow is king.
  2. Constantly updated technology so that you always have access to new features that work with the latest devices. “Resilience” was a keyword during the pandemic. And a recession is just as uncertain for businesses. Having the ability to adapt your business with the latest, flexible technology might be key to your survival.
  3. The ability to try technology to make sure it is right for your business. Most installed software cost the equivalent of several years of subscriptions. And if you’ve paid that much money upfront, you won’t be able to switch even if it’s not working out.
Samsung Self Checkout Kiosk with TAKU Retail

Use automation to reduce operational costs

Everybody has heard about the staffing shortage in the retail industry after the pandemic. With record high inflation, hiring staff is only getting more expensive. Where possible, consider using automation technology to reduce operational costs. For example, if you’re a busy store, solutions such as self-checkout kiosks are an easy way to lower operational costs while improving customer experience and sales by speeding up lineups.

Understand consumer needs

The businesses best able to thrive during a recession are those that are constantly aware of what their consumers are looking for. Even though overall demand will decline during a recession, there are product or service categories where demand may stay the same or even increase. This happened during the pandemic and it will happen again during a recession as shoppers change their buying habits.

Recession-proof products and services

A look at how recessions affect product categories
The performance of some product types during a recession (Source)

The most recession-proof products are the types consumers will always need. Things such as food and energy will always be in demand. Normally speaking, businesses selling non-essential items will have a harder time. The interesting thing with the current recession is that there is also a trend of shoppers looking for ways to improve their lives after several years of pandemic restrictions.

The best example of this are products with “lipstick effect”. When shoppers do not have enough money to spend on big-ticket luxury items, many will find the cash to purchase small luxury items, such as expensive lipstick. So while it can be expected that shoppers will spend less overall on “discretionary” products, they will spend money on things that increase their standard of living, especially if they are good value for money. In Part 2 of our Recession-Proofing Your Business series we will take a deeper look into current retail product trends and how retailers are successfully marketing products during a recession.

Trim your inventory

As mentioned, lower sales lead to more unsold stock on shelves. When you’re carrying more inventory, you will need to deal with more theft, damage, obsolescence, and increased storage costs. You will need to get on top of this by:

  1. Clearing as much deadstock as possible.
  2. Purchasing products your customers are more likely to buy. Do this by staying on top of any changes in your shopper buying patterns. This means tracking your top sellers on a weekly or monthly basis to see. For example, buying products more likely to have the lipstick effect such as home spa kits is always a smart move during a recession.
  3. Stocking less seasonal products unless you are sure that they will sell. The selling time for seasonable products is more limited vs. products that can be sold year-round.
  4. Have a good relationship with your suppliers to optimize your purchasing lead time. As a retailer, it’s important to have products in stock when shoppers want to buy them. But you don’t want to stock too early or too late to avoid locking in your cashflow or not having products to sell. As the supply chain problems during the pandemic start to improve, make sure you’re working with your suppliers to receive products when you need them. Depending on their own situation, good suppliers will try to work with you, especially during a recession, as their business depends on your own success.

Opportunities for growth

Business growth
(Source)

Expand revenue streams

Consider your existing operations. Are there ways you could add new sales channels or add products to generate new revenue? A few ideas you could consider include:

  • Adding more recession-proof products
  • Distributing to other retailers if you make your own products
  • Selling online or on social media yourself
  • Starting an online store under a different brand to sell only discounted or clearance items

The important thing to remember here is that additional revenue streams are incremental sales. As long you’re not adding a lot of extra overhead costs, they generally have the lowest marginal cost as you would not have made those sales anyways.

Power in numbers

Power in Numbers by Greg Bakker
(Source)

Partnerships and alliances with other businesses can help strengthen your business. You can reach out to other businesses and see how you can help each other during a recession. Partnerships can help make your offerings more attractive to customers. For example if you sell homemade soaps, you could reach out to a local business to start selling from their store or sell kits together with them. This way you have more products to sell and/or another way to reach new customers cost-effectively.

Client relationships

Hardware store employee providing excellent customer service
(Source)

Take the time to really deepen your bond with your customers. Focus on providing excellent customer service to improve loyalty. Obviously this is an important strategy during all economic conditions, but during a recession it can really help you keep your business afloat. Studies have shown that shoppers have continued to support local businesses more even after pandemic restrictions ended. When customers are loyal to you they will continue to shop with you despite hardships.

Adapt to meet new customer needs

Business pivot
(Source)

There will be tough times ahead for all types of businesses. But this does not mean it is all doom and gloom. Smart entrepreneurs will look for ways to make their business more resilient by optimizing their operations, pivoting based on consumer needs, and even finding ways to grow. You should take some time and evaluate your business’ position. If you are able to make good decisions during this time you may just come out of this recession better than before.


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