In today’s fast-paced world, customers are always on the lookout for ways to make their shopping experience easier and more convenient. And that’s where click and collect lockers come into play, providing a quick and secure way for shoppers to receive their purchases without having to deal with the hassle of waiting in long lines or managing home deliveries. Let’s explore the top 7 reasons why retail lockers have become a necessity for retailers who want to enhance their operations and provide an optimal customer experience.
Let’s dive in and explore how click and collect locker solutions can help you take your retail business to the next level
Introduction
After being dominant for 70 years, E-commerce industry is now transitioning back to brick-and-mortar retail stores. However, the love for online shopping hasn’t dwindled, as customers still seek the same level of convenience and ease for essential purchases. This has led to new retail trends such as same-day delivery, fresh produce, and retail-ready packaging, causing E-commerce to modernize their order fulfillment process. To keep up with these changes, store owners are looking for automation solutions to upgrade their delivery systems. Smart storage lockers, package control, and less site visits are just a few of the solutions available for retailers to streamline their in-store operations and improve customer experience.
In this blog, we’ll explore the benefits of retail smart lockers, click and collect solutions, and other smart lockers solutions such as outdoor package lockers, automated package locker systems, and retail pickup lockers to help you choose the best option for your local store.
Are Click and Collect Lockers better or Conventional Store Automation?
As online retail domain continues to thrive, traditional brick-and-mortar stores are searching for ways to stay competitive. Retail smart lockers have emerged as a popular solution for retailers looking to improve their last-mile delivery options.
But why choose click and collect lockers over other store automation solutions?
The answer lies in the convenience and cost-effectiveness of this technology. These automated lockers allow customers to pick up their orders at their own convenience, reducing operational costs for retailers who would otherwise need to manage deliveries. Additionally, smart lockers provide a more personalized and secure option for customers compared to traditional package delivery methods. It’s clear that smart lockers for retail are the key tools for retailers looking to succeed in today’s increasingly digital marketplace.
Retail stores can automate multiple business processes to influence both operational outcomes and customer satisfaction. However, store automation solutions like Goods-to-Person (GTP), Automated Storage and Retrieval Systems (AS/RS), Pick-to-Light and Put-to-Light Systems deal with one problem at a time. Additionally, RFID and Mechanical Robot Solutions do not fit the scale of a common local store chain as they would to a large national retail chain. Obviously, spending millions for such warehousing automation solutions is counter-productive when there are efficient end-to-end storage-cum-delivery solutions to meet customized and modular store needs.
Leverage Click and Collect Lockers to Go Beyond Traditional Store Dynamics
Automation alone won’t cut it for local retailers; they also need to focus on improving the customer experience at the endpoint. As e-commerce continues to offer faster and more convenient delivery options, customers are now willing to pay for similar services at their local stores. According to the State of Connected Customer Report by Salesforce, options like Curbside Delivery, Buy-Online-Pick-Up-In-Store (BOPIS), and Buy-Online-Pick-Up-In-Locker (BOPIL) are becoming increasingly popular, and customers are more likely to switch stores if they don’t provide these options. It’s not a gradual decline either; loyalty can drop quickly.
Hence, it is important for retailers to offer smart lockers solutions to collect parcels as part of their delivery solutions.
7 Reasons Why Retail Stores should Adopt Click and Collect Locker Solutions
- Local Street Shopping Dominance
- The Power of Click and Collect Lockers
- Convenience Driving Retail Purchases
- Need of Hyper-Local Fulfillment
- Multi-Store Retail and Consistency in Store Dynamics
- Short-Term Fragmentation of Monthly Supplies
- Sustainability Matters for Retail Stores too
Now that we are aware of the reasons why retail stores must switch to smart locker technology, let us dive deeper into them.
#1 Local Street Shopping Dominance
Customers have realized that not everything is available online, and they are now looking to their local street shops to fulfill their needs. According to a Capgemini research, customers prefer to order basic amenities and groceries from local stores. However, the same customers also want convenience, and prefer the vendors and stores to come closer to their home or work. Smart Lockers are the perfect solutions for Local High Street Deliveries as they can reduce both distance and hassle for customers.
#2 The Power of Click and Collect Lockers
To expand their customer base, local retailers must keep their regular customers happy while attracting new ones. Delivery fleet partnerships fail to serve this need. Third-party fleets dilute store visibility (up to 39%), as customers tend to see them as the face of their essential supplies (Source: Bringg Barometer 2021). Retail lockers installed as dark stores can help develop a personal connection with new patrons by offering them a personalized delivery and returns experience.
#3 Convenience Driving Retail Purchases
Deloitte’s latest report suggests that 50% of regular retail customers have started to spend more on factors of convenience in their buying experiences. Contactless, 24×7 Delivery/Returns and On-Demand Availability, are being accepted and opted for as paid retail services (premium delivery memberships). Smartbox Lockers cover all such needs and more with two-way alerts, programmable isolation, multi-lingual support, and all-weather safety.
#4 Need of Hyper-Local Fulfillment
Stock availability and schedule of delivery have become major challenges for Hyper Local Retail Stores. Fleet-dependent operations are becoming not only cost-intensive but also inefficient. Third-party fleets are unable to ensure real-time, two-way communication for integrated inventory control. Smart Lockers as Warehouses, in this case, offer a unique opportunity to ensure greater control and cost efficiency in daily local order fulfillment.
#5 Multi-Store Retail and Consistency in Store Dynamics
The demand-centric growth has led to a disparity of cost per delivery between urban and rural stores. The issues of capacity, followed by dispatch and routing issues, have created an unhealthy share of profit between stores. Recent usage of digital lockers in retail chains shows stabilization of same store sales by 11% in major global markets (especially North American stores). Not only does it balance the cost per delivery but it also builds a customizable inventory flow based on user demand and not bulk of supply chain.
#6 Short-Term Fragmentation of Monthly Supplies
Customers, in the last few months, have chosen to re-configure their monthly supplies. Think tanks have termed it ‘Short Term Fragmentation’ of regular purchases. Modular delivery solutions like lockers for retail stores allow store owners to cushion the impact of volatile demand cycles with modular and automated delivery management.
#7 Sustainability Matters for Retail Stores too
The world is moving towards sustainability, and retail stores are no exception. In fact, the adoption of sustainable practices can differentiate local retail stores from their competitors. Digital lockers for retail stores help reduce carbon emissions by minimizing the number of trips made by delivery vehicles to individual homes. They also help in reducing packaging waste as products can be delivered in bulk to the lockers, and customers can collect them in reusable bags. This not only reduces waste but also enhances the customer experience by offering a sustainable delivery option.
Click and Collect Lockers in Retail are Inevitable!
As consumers continue to demand convenience, retailers are turning to smart lockers for packages and click and collect solutions to streamline their order fulfillment process. Smart storage lockers and retail pickup lockers are becoming increasingly popular due to their ability to offer package control and provide a hassle-free experience for customers. Automated parcel lockers and outdoor package lockers are also being implemented to modernize delivery systems and offer a contactless solution. With the rise of BOPIS retail and same-day delivery options, retailers must invest in automated package locker systems to stay competitive and meet customer expectations.
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