Hot new models!

Business models, of course.

Business models in the now economy are changing faster than the breakfast menus at your local fast food restaurants.

The challenge for today’s retailers is to accept the new retail revolution and become the chameleons they will have to be in order to succeed.

This does mean embracing the change of how today’s consumers are shopping and understanding new buying habits and expectations. Like it or not, the customer is king or queen and can vote for where they decide to spend their hard earned cash. It’s important you stay current with how the majority of people are shopping or the royals will leave your business in search of modern offerings elsewhere.

So let’s talk about trends in business models for current and future growth.

1.  Know this, live this, breathe this – It doesn’t matter what you retail or what your own stubborn personal beliefs are about this. You had better be selling your products online. Open up your eyes and take a look at what’s going on around you. Every single consumer demographic you can think of is fixated on their phones, tablets, laptops etc. – this is becoming part of the day to day lifestyle for many and it’s not going away. I’ve said it before and I’ll say it again, shopping online is for the most part safe, easy, relaxed and cost saving. Trust me, shoppers today are not like those of days gone by, many do not feel the need to talk to a salesperson or see and touch their purchase up close before buying. I can speak from a very personal viewpoint on this.  One of the BMW’s we purchased we had never taken a drive in prior to buying it, and the new stand up paddle boards my wife has bought for us this year were researched and ordered online and delivered to us from New York without ever seeing them. Thousands of dollars spent without ever stepping into a showroom.

2.  Smaller business models. Small is big! Many retailers are finding reducing their size has been the formula to less stress and larger profit. Smaller space stores require less inventory to fill and can be far more specialized and reduced operating costs are just a few of the reasons to go small. The writing is on the wall as many shopping malls, department stores, big box chains and large sized retailers see consumers trending away from the mega shop experience and gravitate to the smaller boutique element. Go small to go big.

3.  Kiosks. Steady growth in retail kiosks is making them a very popular alternative way to retail in North America. Compact in size, shiny and fresh in their offerings, combined with short term leases and high profit margins make these ideal for many entrepreneurs.

4.  Pop up stores. I have seen more and more of these on my travels and they are the magic ticket for many seasonal retailers that focus on specific products during high volume times of the year. Christmas and Halloween are especially profitable for these temporary outlets. Look for more of these popping up in your city as commercial lease space is readily available in most areas.

The business models above represent just the tip of the retail iceberg in how consumer buying habits are changing how we retail. Welcome and embrace the change, it’s what keeps life interesting for you and your customers. Happy selling!