Dive Brief:
- Legacy retailers are borrowing strategies from online sellers to reduce inventory on hand in their brick-and-mortars.
- Macy’s recently displayed single items of each style in its swimwear section, for example, asking shoppers to use its app to alert a staffer that they want to try an item on.
- Buy online, pickup in-store has helped large stores cope with more nimble e-commerce players, but inventory reduction saves space and encourages interaction.
Dive Insight:
Retailers such as Blue Nile and Bonobos—e-commerce specialists that have made the transition into physical store locations—are teaching big brick-and-mortar heavyweights such as Target and Macy’s how to keep inventories low while still allowing shoppers to see and touch the merchandise.
Macy’s, for instance, has experimented with a system that displays only one example of an item, keeping its racks less jammed while still allowing shoppers to try on items in their size. Denver-area Target stores recently employed a similar strategy, only showrooming bulky patio furniture sets before asking customers to complete their orders online. And Boston Proper employs a “tech table” in stores to offer its full range, while only stocking about half the available options in-store.
While inventory-reduction strategies tend to downplay the instant gratification of walking out with one’s purchase, they can increase customer engagement in stores by encouraging interaction with sales reps. Speed sells online, but brick-and-mortar stores still have the edge in personalized service.
