Navigating Through The 3 Key Challenges in Brick-and-Mortar Retail

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Brick-and-mortar retail faces transformative challenges in the ever-evolving landscape of the retail industry and the strong growth of e-commerce. This article delves into three key challenges that demand the attention of every brick-and-mortar retailer to ensure resilient growth.


Challenge 1: E-commerce Disparity

E-commerce is on a rampant growth trajectory, boasting a 9% Compound Annual Growth Rate (CAGR), while traditional retail lags with a 4% CAGR. This stark contrast underscores the urgent need for innovative strategies by brick-and-mortar retailers to stay relevant and competitive.


Challenge 2: Direct-to-Consumer (D2C) Dominance

The ascent of D2C commerce disrupts traditional retail models, with suppliers increasingly selling directly to consumers. This shift demands that brick-and-mortar retailers redefine their roles and enhance their value proposition to stay in the game.


Challenge 3: Margin Pressure and Evolving Business Models

Traditional retailers grapple with mounting margin pressure as online competitors drive prices down. To thrive, these retailers must explore new business models that resonate with consumers and offer unique value propositions.


Respory’s Solution

By leveraging our technology, retailers can unlock additional income streams through data-driven insights. Respory’s technology provides valuable information on all customer paths, enabling retailers to generate revenue by monetising their sales area. The frequency of predefined zones can be easily measured and hence suppliers can be charged a higher fee for a spot proven to experience more traffic. This can also be utilised to charge flexible rents for store-in-store solutions in shopping malls or department stores.

Furthermore, Respory empowers retailers to navigate marketing challenges by offering precise data on customer engagement with marketing materials and points of interest. This granular information enables retailers to measure the return on investment of their marketing expenditures accurately. As a result, retailers can allocate their budgets more effectively, investing in strategies that resonate with customers and contribute to a measurable impact on their bottom line.


The challenges confronting brick-and-mortar retail are complex and difficult to navigate. But by leveraging accurate customer movement data, brick-and-mortar retailers can not only solve these challenges but also carve out a path for sustainable growth in the digital era.



The Most Frequently Asked Questions About Challenges in Brick-and-Mortar Retail

E-commerce’s 9% CAGR compared to brick-and-mortar’s 4% highlights the need for innovative strategies to remain competitive.
D2C disrupts traditional retail as suppliers sell directly to consumers, forcing retailers to redefine their roles.
Online competition drives prices down, pushing retailers to explore new business models. Respory’s technology offers insights to monetise sales areas and optimise profits.
Respory provides precise data on customer engagement, allowing retailers to measure ROI accurately and allocate budgets effectively.
Accurate data helps retailers navigate challenges, optimise operations, and enhance customer experiences for sustainable growth.

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