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Taku Retail Video Series: Is Physical Retail Dying?

This week, I sat down with Karen Wong, the CEO and Founder of both ACE POS solutions Ltd. and TakuLabs. Ltd. She stresses that while the retail industry is going through many changes, the reality is that, physical retail is far from dead.

About Our Founder

Before co-founding Takulabs, Karen has been a part of several ventures – from being a small retail business owner herself, to working in marketing,manufacturing, and wholesale. Her passion lies in helping retailers sell more by building solutions that drive store growth. 

The goal of this video series is to share Karen’s broad knowledge of retail and marketing with fellow store owners. 

This talk will dive deeper into the importance of physical retail and the pros and cons of physical retail vs. e-commerce. 

Enjoy!

Do You Think Physical Retail is Going to Die?

Everybody has probably heard of the “retail apocalypse” – meaning physical stores are dying. The headlines are all about how the big chains are closing down. But in my opinion, it’s heavily overblown. The reality is that 85% of retail is still physical!

It’s not just about one channel. Increasingly, it’s all about being accessible to customers wherever they are. Because customers don’t just want to engage through shopping – they want to engage through discovery.

store front

What is Shopping and What is Consumption?

There is a difference between shopping and consumption. 

Shopping means that there is a discovery process. It means you are looking for something but you need more information. 

Consumption means you that you are just refilling the pantry. You buy the same brand every time so you just need to find a place to buy it from. In this case, people may just go online. 

grocery store

Why do you Push Physical Retail so Much? 

A lot of our customers are established businesses. That means that they are already profitable businesses with fixed costs. But these fixed costs are covered by the fact that they have ongoing business that covers those costs. 

Retailers should be leveraging their business while trying to grow their physical and digital channels. 

Right now, many of our customers have those established doors and there’s so many reasons you want to push physical retail vs. only e-commerce.

When people say that “I have to go digital, I need to open an e-commerce store”, my first question to them is:  have you optimized everything you are doing in your physical store?

You already pay those fixed costs. Everything you sell, you make a higher margin because your fixed costs are already covered. 

physical retail

What are the Pros and Cons of E-commerce vs. Physical Retail?

e-commerce

What are the Benefits of Leveraging Physical Retail? 

Other things you want to think about is that if you don’t leverage physical retail, you are missing out on things such as impulse buys. When a person comes into the store looking for one thing, they often leave with multiple things. It happens to me and still happens to me all the time!

You should also consider thinking about cross-selling and up-selling. You have people in the store and you yourself (if you are in the store) are probably the best person to tell people “that item that you’re looking at really goes well with this”. Or maybe even get them to buy something even better than what they were originally considering.

impulse shopping

The Future of Physical Retail 

All of these things and moments are part of the reasons why I don’t think physical retail is going to die. It’s just going to be a major core or focus of retail as we move forward.

I mean after all, you are seeing more and more pure e-commerce businesses are opening physical stores because they’ve realized they can make more money in physical stores than they can online.

It means more engaged customers that come back with repeat business.

retail mall

Data Analytics in Retail 

Another thing that you want to note is data analytics in retail(this is where I talk a lot to customers about using technology). Those stores are famous for using data and using the data well to make sure that everything they are doing in that physical store is being driven by some type of statistic or analytics.

This is kind of my reason for encouraging customers to really reconsider re-vamping or reviewing the operations of their physical store first.

retail analytics

We hope you enjoyed the first episode of our video series! Subscribe to our Youtube channel to stay updated on upcoming videos. 

#physicalretail #talkswithtaku #retailpos #cloudpos #sellmorewithtaku #retailsales #retailmarketing 

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How is Cloud Technology Changing the Retail Industry?

How is Cloud Technology Changing the Retail Industry?

In today’s digital era, more and more retailers are recognizing the benefits of cloud technology. 1/3 of retailers are expected to adopt cloud based technology by 2020.

But what are the benefits of having cloud technology in your retail space?

3 Key Benefits of Cloud POS for Retailers

1) The ability to sell and operate from anywhere

Web-based POS solutions store data in the cloud which makes them available around the clock for authorized users to pull reports or manage inventory right from the comfort of home or while on a business trip. In comparison, traditional, installed software requires managers to be on-site in order to gain access to important business information such as sales and inventory reports.

With a well-designed cloud POS system, retailers also have the advantage of running their POS software on any hardware from iPads to Windows computers. This flexibility means that retailers are not tied to a specific operating platform. Retailers using traditional POS software and are looking to make the switch to cloud, can do so easily with their existing hardware.

work from anywhere with your cloud retail POS

2) Reduced Ongoing Costs

In the long-term, cloud POS software is more cost-efficient than traditional software. This is due to the elimination of many hidden ongoing maintenance costs associated with installed software. In comparison, cloud-based POS solutions requires minimal upfront investment, have little to no downtime during updates, and reduce the amount of in-house technical support and post-sales support required.

Retail cost of on-premise vs. cloud computing

3) Access to Real-Time Business Information

Cloud POS software also comes with the benefit of easier access to real-time information. In other words, inventory and sales data is updated as products are received or sold rather than every few hours or daily. If used well, more timely data can help to eliminate significant inventory costs by minimizing stock-outs or overstocking slow sellers. This is particularly important for retail businesses that have multiple locations where consolidated sales and inventory data is critical to purchasing decisions. At the same time, a well-designed cloud POS software will have real-time marketing integrations that help drive more local traffic to your retail store.

Real-time information

For more information on how retail technology can be used to drive growth and improve operations, sign up to receive our monthly blog updates.


I’m Karen Wong, contact me if you’d like to connect. Follow me on LinkedIn.

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Archives

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benefits of seo black friday budget marketing canada cloud adoption cloud point-of-sale cloud pos cloud retail software cloud technology customer loyalty custom names digital marketing footfall foot traffic free images free marketing geo-targeting google google local inventory ads Google My Business google my business features google shopping halloween holiday marketing in-store Industry Trends local seo main street retail marketing tips online search physical retail point of sale pos POS Tips retail retail marketing retail stores retail technology search engine optimization sell more seo small business stock photos technology thanksgiving