Blog – TOKINOMO

Endless aisles in Retail: How does it work?

Written by Nicoleta | Mar 29, 2023 8:14:31 AM

After the Pandemic changed the way we shop, customers are expecting a lot more from retailers. A lot of consumers got used to online shopping. However, brick-and-mortar is not dead and many shoppers still prefer to buy in-store. One of the biggest issues when shopping in-store is the low stock of products. Due to the finite space, retailers need to have a smaller stock of products compared to eCommerce retailers. 

In this article, we will discuss about endless aisles. This new tactic can help you provide a better experience for your customers when they shop in your store. 

What are Endless Aisles in Retail?

Endless aisles is a term used in the retail industry to describe a marketing or sales tactic. It allows customers who visit physical stores to order items online that may not be available for immediate purchase. This means that even if an item is out-of-stock or unavailable to take away, shoppers can still place an order for it and have it shipped to their home within a few days. This approach is also referred to as "buy in-store, ship to customer."

While online sales make up 22% of total retail sales, most shoppers still prefer to buy in-store. Endless aisles give customers more choices and make it easier for them to find what they are looking for. For retailers, endless aisles help to increase sales by offering a wider range of products and reducing the need for physical store space to hold inventory. 

Advantages of Endless Aisles in Retail

Increased Product Selection

Endless aisles allow retailers to provide a wider range of products for their customers than they would be able to stock in warehouses or physical stores. This can lead to increased customer satisfaction, as they are more likely to find exactly what they are looking for.

Increased Sales

This tactic can also help retailers increase sales because shoppers have more options. Customers who may not have found what they were looking for in a physical store can easily order it, resulting in more sales for the retailer.

Competitive advantage

By implementing endless aisles, retailers can gain a competitive advantage over other brick-and-mortar stores that have limited physical space. This can attract more customers and help the retailer to stand out in a crowded marketplace.

Lower inventory costs

Since retailers don't have to physically stock endless aisle products in their stores, they can save on inventory costs such as storage space, transportation, and handling. This can also result in lower overhead costs.

Customer understanding

Monitoring what shoppers order when they come in store can help retailers better understand their customers' needs and preferences. This can lead to better product development and marketing strategies.

Challenges of Endless Aisles in Retail

Inventory management difficulties

With a large number of products available, it can be challenging to manage inventory effectively. Retailers need to ensure that they have accurate information about product availability and shipping times to prevent stockouts or delays in delivery.

Cost

Cost can be a challenge in implementing endless aisles for retailers. This tactic requires a significant investment in technology and infrastructure to manage inventory, logistics, and customer data effectively. Additionally, retailers may need to work with multiple suppliers or manufacturers to offer a wider range of products, which leads to increased costs.

Logistics

Managing the logistics of endless aisles can be complex. Retailers need to have robust systems in place to track orders, manage returns, and handle customer inquiries. This requires a significant investment in technology and infrastructure.

Implementation and data accuracy

To provide a good customer experience, retailers must ensure that the product data they display online is accurate and up-to-date. This includes product descriptions, images, and pricing. Inaccurate product data can lead to customer dissatisfaction and returns.

How to Implement Endless Aisles in Retail

  1. Identify the products to offer: Retailers should carefully consider which products to offer through their endless aisles. This can include products that are not typically available in physical stores, as well as products that are popular with online shoppers.
  2. Establish relationships with suppliers: Retailers may need to work with multiple suppliers or manufacturers to offer a wider range of products. This requires establishing relationships with these partners, negotiating contracts, and ensuring that products are delivered on time and in good condition.
  3. Invest in technology and infrastructure: Endless aisles require a significant investment in technology and infrastructure to manage inventory, logistics, and customer data effectively. Retailers should consider investing in an e-commerce platform that supports endless aisles, as well as a robust inventory management system, shipping and fulfillment capabilities, and customer data analytics tools.
  4. Ensure accurate and up-to-date product information: To provide a good customer experience, retailers must ensure that the product data they display online is accurate and up-to-date. This includes product descriptions, images, and pricing. Retailers should establish processes to ensure that product data is updated regularly and that errors are corrected quickly.
  5. Monitor performance and adjust strategies: Once the endless aisles are up and running, retailers should monitor performance closely and adjust their strategies as needed. This includes tracking sales, inventory levels, shipping costs, and customer satisfaction metrics.

Endless Aisles strategies

Interactive kiosk

An interactive kiosk is a touchscreen display that allows in-store shoppers to browse through an online product catalog, view detailed item specifications, and place orders to be shipped to their homes. This kiosk is also referred to as a virtual or endless shelf.

 

One of the main advantages of in-store kiosks is that customers can complete their shopping tasks without requiring the assistance of a retail store associate. This can be particularly beneficial for retailers looking to reduce costs as it allows them to serve offline shoppers with minimal physical space and fewer store associates, resulting in lower monthly salaries and higher profits.

Order fulfillment

Operating an endless aisle does not require retailers to maintain stock on hand. Instead of relying on interactive kiosks, retailers can opt to dropship out-of-stock products directly to the customer's address. Essentially, the retailer takes the customer's order at the physical store, but the order is processed through the retailer's e-commerce store. The customer's order data is then forwarded to a third-party supplier who handles the picking, packing, and shipping of the product.

The primary advantage of this endless aisle strategy is the seamless customer experience it provides. Shoppers do not have to interact with multiple suppliers, but can still access a diverse range of products through the retailer's store.

The best part? Retailers can access an unlimited inventory without having to store it themselves. This retail strategy is effective even for small stores with limited space.

Endless Aisles for increased customer satisfaction

The concept of endless aisles has revolutionized the way consumers shop in the digital age. With endless aisles, retailers can offer an extensive selection of products that may not be available in their physical stores. 

Moreover, endless aisles can increase sales and revenue for retailers, as they are able to reach a wider audience and offer products that customers may not have considered purchasing before.

However, there are also challenges to implementing endless aisles, such as the need for effective inventory management and logistics, as well as ensuring a seamless and user-friendly shopping experience for customers. Additionally, endless aisles may not be suitable for all retailers, especially those with limited resources or a niche target market.

Despite these challenges, the benefits of endless aisles cannot be denied, and it is clear that retailers who embrace this concept are likely to gain a competitive advantage.