Shaping The Future Of Retail Business - What can 2025 look like?

INTRODUCTION:

As a previous owner of a retail business with multiple locations for 17 years, some could consider me an expert in retail concerning business trends, branding, inventory, staffing, and primarily surviving through good and bad economic times. I can be sincere and say when I opened my business, it was in some of the worst economic times in history. I struggled numerous times in my first three to five years and thought I might have to throw in the towel.

Regardless of business size, running a business is a great responsibility. Not only do you have to make a living, but you also have to ensure that you can pay your staff so they can make a living. Along with that, you must be able to pay your bills. That said, I was certainly not as big as nationwide chain stores. At that stage of the corporation's size, very few companies care about the people who work for them. We have all heard the phrase, "You're just a number."

In most cases, that is true. However, some corporations care about the people who work for them and run their corporation with that caring in mind. If you work for a corporation that cares, keep that job and thank your lucky stars. The days of mom-and-pop shops are fading away. They are finding it increasingly difficult to compete with the large chain stores and the internet.

In many cases, large corporations are owned by a combination or group of people who may or may not even know anything about their business. They hire people who do. As long as they are making money, they are happy. When they are not, they make changes. These changes affect the lives of those who work for them. When they do not profit for too long, the company is positioned to look profitable for them to sell it. How that affects you does not fit into the equation. This usually starts with the do more with less concept. Cutting people and hours is the best way to save money and increase profits.

A BUSINESS STRATEGY:

A business strategy is simple and basic in form. MAKE A PROFIT. No investor will invest, a bank will not give a corporation a loan, nor will vendors give them terms if they are NOT profitable. Never forget that. The smaller the business, the more difficult it becomes because there is less collateral they have to offer to protect the investment. Most companies have different strategies. Some may boast about their customer service. By the way, customer service is the first thing that suffers when times are difficult. Failing customer service is one of the prime reasons a business will fail. Lack of inventory is also a contributing factor. I always believed I could not expect my staff to sell what I didn't have in the store. As the owner, it was my responsibility to run my business in such a way as to keep it profitable. Hence, my customer service never faltered, and my stores always had inventory. The phrase, "You have to spend money to make money is true."

No business can have everything any customer may want. However, if you are a car dealer, how could you sell cars with only a few vehicles on your lot? Therefore, whatever your specialty is, be sure you have the inventory to back you up. However, it works if you are a shoe store specializing in only one brand of shoes. Shoppers who enter your store will not expect to see numerous brands of shoes because they are looking specifically for the shoe brand you sell. However, you had better carry most of their line. Nothing short of doing your business justice is another nail in its coffin.

In the next couple of sections, I will discuss the future of retail. For now, here are a couple more thoughts. Any retail store is judged primarily by the team members the customer interacts with. Any business can hire a greeter. Someone who can take them to the part of the store that stocks what they are looking for. Jokingly, in the world of retail, these people are called "Walmart Greeters." The problem arises when your entire staff are "Walmart Greeters" and know very little about the product you sell.

We now live in a world of educated consumers. With the internet, most customers have done their research before they open your door. You're in big trouble when they know more about your product(s) than your staff. The data shows that more people will write a bad review about a company than a positive one, and many still read reviews.

Your staff is the face of your business. It reflects who and what you are. Therefore, if you pay a cheap wage to get someone to work, you are killing your company in the long run. You can get more done with less and more knowledgeable staff than with more staff members with little knowledge. This does not apply to every team member. For example, your cashier must be friendly, smile, and take in the money. They do not need to know the products. This is why we have job classifications and hire people with specific expertise in different areas. In short, you hire cheap, you get cheap, which leads to poor results and puts a significant strain on other, more knowledgeable staff members. Eventually, you will lose them to another company along with their knowledge.

Keep in mind that you are a retail business. Retail customers are impulse buyers. They want it now and do not want to have to order it. That is why these customers came into your store. Also, they may have already price-matched the items they are looking for, so they know what the item might cost. Give or take a few bucks. We live in a world of online shopping and shoppers. Some of the largest box stores may have closed many or all of their brick-and-mortar stores and converted to online business models. This saves them millions and makes them more money. More money equals more profit. Remember profit? It's the #1 business strategy.

Retail, especially for a mom-and-pop business, is essential, especially during holidays. For many, what they make during one holiday season carries them over to the next. Therefore, a bad season, lousy economy, storms, weather, and many other factors can make or break their business. If these things affect the multi-million dollar corporations, you know it must also trickle down to the smaller companies. Retail is about the survival of the fittest and the smartest.

Small businesses are usually located in strip malls, large malls, or outlet centers. They rely on the other stores to draw shoppers to their stores. This is prevalent in tourist attractions or small, quaint shopping locations.

Pre-pandemic, I did a fair share of public speaking at business seminars for some large companies. My specialty, which I will call my expertise, is customer service and management/employee relations. How to engage a customer, read the customer, and sell the customer. The trick is not to sell them what they don't need because it costs more. It's to sell them what they do need within the budget they can afford. This gains trust, good reviews, strong referrals, and return customers. This lowers your return rate. You don't make money on returns.

When I opened my business, my father told me, "Don't try to send your children to college with one customer; when you service something, fix it right the first time. The first time you are getting paid for it, repairing a bad job is free."

The moral is that you don't make your money on one customer. You make money across many customers. Repeat business is the key to longevity.

THE FIVE KILLERS IN BUSINESS:

Returns. Most returns are due to someone finding the item cheaper elsewhere or your salesperson overselling it. The customer realizes they didn't want to spend that much and returns the item. There is no profit, especially if it is a special order item you do not usually stock.
There is a lack of proper use of staff. Many managers try to keep people happy and do not adequately define their role in the operation. They allow them to work in areas where they lack the knowledge to keep them happy so they do not lose them. This equates to disaster if they are dealing with customers.
Low wages only attract unqualified candidates who poorly represent your business and its mission. For example, suppose your company prides itself on excellent customer service, and someone doesn't know how to provide that service. In that case, you are doing a grave injustice to your business, which will eventually show.
Pricing. Your pricing MUST be competitive. No rule says you have to beat everyone else's price. Customers usually pay more for a more personalized experience and strong customer service from knowledgeable staff.
Attitude—leave it at the door. Everyone has a bad day and issues. Your customers don't care about your problems. Your attitude leads to poor customer service and engagement. Additionally, it hinders you from being a team player. Attitude is everything in retail.

There are more, but I believe these are the top five that will eventually destroy any business. Even as simple as ordering something from a drive-thru at a fast food chain, people expect to be taken care of and receive good customer service. Think about that. How many times has your order been screwed up, and you get so mad because you have to go through the whole line again or park the car and go inside to get it fixed, which defeats the purpose of why you went through the drive-thru in the first place?

Retail is constantly changing due to many factors. However, the basics of good retail never change. As a corporation owner or a small business owner, it is your job to be sure these basics are being met. Too many large companies rely on ridiculous data and metrics to gauge what is happening. Metrics that, in the larger picture, are meaningless if your company is missing the basics. I am not saying this data or metrics are a waste of time. This information is only helpful if good basic business practices are being met.

SHAPING THE FUTURE:

With the massive onset of online stores, the future of retail is changing. Businesses can shape their business model to compete with this or fall by the wayside until they can no longer compete. In today's world, you can get your groceries, coffee, breakfast, lunch, or dinner delivered right to your door. Many places offer same-day delivery. Unlike years past, PEOPLE DO NOT NEED TO LEAVE THEIR HOUSE FOR MUCH ANYMORE.

Therefore, when someone leaves their house and opens your door, make it worth their effort. But since we have a new President and political climate, let's focus on 2025 momentarily. I'll try not to get too techy on you. The retail landscape is undergoing a significant transformation in 2025, shaped by technological advancements, changing consumer behavior, and evolving market dynamics. As we turn the page on how retail is adapting, it becomes evident that the convergence of innovation, sustainability, and personalized experiences redefines this space. Let's look at some key points.

In 2025, omnichannel retailing has moved from a strategy to a necessity. Brands have invested heavily in creating seamless experiences across online and offline channels. Consumers now expect continuity when transitioning from browsing a mobile app to shopping in-store. Retailers are leveraging technologies such as augmented reality (AR) to bridge the gap between online and physical shopping, allowing users to visualize products in their home environment before purchase—such a cool feature.

The efficiency of click-and-collect services has seen exponential growth. Shoppers can purchase items online and pick them up at designated locations or automated lockers. This convenience has become increasingly appealing, especially as consumers look to minimize delivery costs, wait times, and travel times. Retailers are harnessing the power of advanced data analytics and artificial intelligence (AI) to deliver specialized shopping experiences. By analyzing consumer behavior, preferences, and buying patterns, companies can tailor their marketing, promotions, and product recommendations to each individual. In 2025, personalization is not just a buzzword; it's an expectation, with AI-driven algorithms creating real-time suggestions that enhance customer satisfaction and loyalty. In many aspects, AI will change how we shape as we get deeper in 2025.

AI and machine learning models are now integral to inventory management systems. Retailers use predictive analytics to forecast demand, accurately reducing overstock and stockouts. Automated systems can adjust inventory levels based on real-time sales data, seasonal trends, and market fluctuations. This responsiveness ensures that retailers can meet consumer demands while minimizing waste. There is a slight downside: It will lower inventory levels, so some customers' needs may not be met immediately. However, in the big picture, this is a small ratio.

The concept of a circular economy is gaining momentum in retail. Brands are exploring ways to create closed-loop systems, encouraging product returns for recycling or refurbishment. Initiatives such as buy-back programs and rental services are becoming commonplace, appealing to environmentally conscious consumers and reducing waste. This concept is also limited to specific products. However, more items are now considered hazmat shipping items than ever before.

In some major chains, robotics and automation are transforming the in-store shopping experience, depending on the product. Retailers are deploying robots for tasks such as inventory management, customer assistance, and even checkout processes. Automated kiosks and contactless payment systems streamline transactions, enhancing customer convenience while minimizing wait times, increasing consumer security, and reducing fraud risk.

Social media platforms have evolved into powerful retail channels and will continue to grow in 2025. Social commerce enables brands to sell directly through platforms like Instagram, TikTok, and Facebook, where consumers can browse and purchase within the app. This fusion of social media and e-commerce is redefining how consumers discover and buy products, driven by authentic influencer marketing and user-generated content. Brands in 2025 are prioritizing community building through social platforms. Retailers can cultivate a loyal customer base by fostering authentic interactions and engaging content. Live shopping events and interactive sales broadcasts are becoming popular, blending entertainment with purchasing opportunities.

Blockchain technology is making strides in retail, providing a tamper-proof ledger of transactions. Brands are using blockchain to enhance transparency in their supply chains, allowing consumers to verify the origin and authenticity of products. This level of transparency builds trust and loyalty, particularly among younger consumers who are increasingly demanding ethical sourcing practices.

IN CLOSING:

Shaping the future of retail business is a reality and will grow quickly in 2025. A dynamic interplay of technology, sustainability, and consumer engagement characterizes the retail sector in 2025. As retailers adopt innovative practices and invest in technologies that enhance customer experiences, they meet and exceed evolving consumer expectations. The future of retail is bright, driven by continued innovation and an unwavering commitment to adapting to the needs of the modern shopper. As we move forward, the lessons learned during this transformative period will likely set new standards for retail for years to come. However, keep in mind that behind all these ideas, technology, and advancement are people: store owners, company owners, managers, sales staff, cashiers, and live interaction with customers. Even "Walmart Greeters." With all these advancements, people are still people, and the five basics should apply first, as technology should be built around them.

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