6 Types of Retail Stores With Supply Chain Issues
No retail store is impervious to supply chain issues. It can happen in a grocery store as well as a wholesale furniture outlet, but here are six retail stores that have specific types of supply chain challenges that need to be overcome in order for the store to realize a profit.
- Apparel – Clothing is one item that everyone needs and that many people have difficulty finding when they need to purchase. The reason apparel shopping can be difficult is because people have different body sizes and body types. Clothing can come in a so many different varieties, even within the same brand, that the retailer has to figure out how many of each size, color, and style to purchase for its location. And if you order apparel for a chain of retail stores, you have the added challenge of allocation.
- Footwear – Shoes, like blouses and pants, also come in a variety of styles, sizes, and colors. You have to ensure you have the right amount of each variety in stock, or you could lose a customer. But most retail stores have a limited amount of space for stock.
- Sporting Goods – Unless you specialize in a particular type of sport–like hunting, for instance–you have to stock enough of the right equipment to appeal to a variety of sports enthusiasts. Which sports are popular where you live? Start there.
- Jewelry – Jewelry is a luxury item, unlike clothing and footwear. Many people make purchases of jewelry based on price, so you have to make sure your stock reflects all the various price points your customers may be coming from.
- Home Decor – People make their home decor purchasing decisions based primarily on style. Some people like western or rustic designs while others prefer a more polished or culturally postmodern style. You have to decide if you’re going to specialize or if you are going to stock the most popular items of a variety of styles. Appeal to your demographic.
- Department Stores – Department stores have their own challenges. You’ll have to stock a variety of items from jewelry and clothing to furniture and home decor. That means you have to dedicate floor space to demos and showcase pieces while keeping a fair amount of stock on order in your back room or warehouse.
No matter what type of retail business you own, you’re going to have to supply chain challenges. How you overcome those will depend on how profitable you are as a business.