Similar to other parts of the world, the UK retail industry is struggling to handle the negative impacts of the COVID-19 pandemic. The pandemics also prevent a large number of potential UK retailers from entering the industry. Is it really a bad idea to open a retail location in the UK now?
Although lockdown regulations pose an interruption in trade in most sectors of economic activity, the UK retail industry still reported an increase in total retail sales by 2.2% in 2020. The brick-and-mortar retail industry in the UK is not dead. Yet, in order to fulfill customers’ requirements in the modern-day and stay competitive, brick-and-mortar retailers need to change their approach. Here are some notes for new retailers if you are considering open a retail location in the UK.
Have a specific business plan
Opening a retail business in the UK is a long and challenging journey with loads of things to consider. A business plan will not only give you an overview of what you are heading toward, but it will also guide you how to keep things on track. A good business plan can be used for funding and finding your business partner.
In addition, it is important to bear in mind that things on your plan might be different from what actually is in your stores. Hence, when writing a business plan, you should also predict possible problems as well as prepare solutions to the worst scenario.
Choose your wholesalers
The vendor is a key factor that can make a significant impact on your business. To be more specific, vendors are wholesalers that take responsibility for supplying products and developing a flawless supply chain. If your vendors can not ensure a continuous supply for your stores, the whole business process will be interrupted.
Although there are various vendors in the UK industry now, choosing the right vendor may take ages. You will have to consider the quality of their products, the delivery costs of that vendor, and terms of guarantee when any problem arises.
Calculate your finance budget
Accounting app vector illustration. Professionals working on financial reports, analyzing data sheet. Team of accountant using bookkeeping software
Another major determinant when it comes to opening a location in the UK is to effectively calculate and allocate your in-hand budget. There would be an array of different costs to consider, especially in a top priceiest market such as the UK.
Carefully calculating your financial budget will help you to pay down debt and build your savings. You can consider having a long-term plan for allocating your finances to closely monitor your spending and track each of your expenses.
Adopt modern technology in your stores
Being a newly established retailer in the UK’s modern retail market, adopting advanced technology for your business is definitely a great idea. For retailers, an all-rounded point-of-sale system might be everything you need.
A POS system can not only facilitate your brick and mortar stores in the UK but also bring you huge opportunities to develop an omnichannel retail business in the future. With the help of powerful features, retailers can somewhat shed their burden on opening a new retail location and quickly grow their stores.
Take ConnectPOS as an outstanding example. This POS solution can automate many different inventory tasks to avoid unexpected human mistakes. Also, ConnectPOS can automatically gather business data and produce insightful reports on your performance and the changing UK market. These reports will tell you how to adapt to particular situations and stay competitive.
As mentioned above, the UK market offers retailers various chances to gain more profit and grow their business. However, there are more challenges to opening a retail location in the UK. If you are still thinking about starting your stores at this time, please know that you are not alone. Don’t hesitate to contact us, we are always willing to help new retailers realize your business plans.