Direct to consumer brands restructure retail strategies

Remember when “As Seen on TV” products were only available by calling the number on the television screen? Products such as Chia Pet, The Clapper and even The Snuggie all became pop culture icons by infiltrating TV programming.

But as the internet took off around the turn of the century, companies found less expensive and more strategic ways to sell their products. Enter Warby Parker, Everlane and Casper, which made up the first generation of digitally native DTC companies.

Back then, those brands and others like them were happy selling a relatively niche product online without all the costs associated with brick-and-mortar retail distribution.

Today however, DTC companies are evolving to further expand their market share, joining forces with large, well-known retailers and big-box stores, as well as with holding groups.

Such collaboration is paying off, both in revenue and mindshare.

This expansion requires software with flexibility that allows for organizational intricacies.

The distribution and audience gains require resources through their software that can shift to support the areas that get new stress.

Retail Pro Prism’s flexible software with a vast library of Plugins and omnichannel support provide the necessary visibility and capabilities for brands to adjust their technology according to their strategies.

Embracing Brick-and-Mortar

Partnering with brick-and-mortar retailers has provided DTC brands access to a wider consumer base and the opportunity for more personalized customer experiences.

The ability for customers to experience these products in person is a huge win, and makes a true omnichannel experience possible.

With the integrated inventory visibility afforded in Retail Pro Prism, customers can check in-store stock of an item, place the order, and immediately experience it upon pick up in store.

Entering the brick-and-mortar space as a previously pure ecommerce brand also likely requires the inventory and broader data integration and visibility that omnichannel brings.

Retail Pro Prism provides flexibility in configuring your omnichannel POS system, so you can adjust it as you grow to satisfy your business’s changing needs.

In addition, Retail Pro Prism has a built-in customer management system that enables an associate to access prior purchase history, note preferences and other relevant information that makes for the kind of personalized customer experience shoppers have grown accustomed to online.

Direct to consumer brands Joining Forces with Holding Groups

Holding groups provide financial backing, operational support and expertise to a larger network of retail partners, so brands can scale their operations and consolidate resources more efficiently.

An example of this arrangement is the partnership between Casper, the popular mattress-in-a-box company, and Target Corp. Since 2017, Casper products have been sold on Target’s site and in its stores. The strategy allowed Casper to expand its reach outside of online sales and tap into Target’s extensive retail network, broadening its brand visibility.

Meanwhile, Target could provide its customers a popular DTC brand’s innovative sleep products, which aligned with the big box store’s focus on providing high-quality and trendy home goods.

There are a number of ways a large chain can structure their POS system, and even more configurations could be made to sell these DTC brands’ products within the larger big box ecosystem.

With Retail Pro Prism, vendor management capabilities are useful in these arrangements between specialty brands and big box retail. Subsidiary management capabilities in Retail Pro Prism are pertinent as well.  The connected data and visibility across all levels of operation that Prism facilitates will be valuable in these circumstances.

A connected view of inventory will be necessary for the DTC brand to maintain the seamless online experiences they are known for when venturing into the brick & mortar experience.

The rise of DTC brands has revolutionized the retail industry, prompting brick and mortar stores to reevaluate their perceptions of what customers want.

As brick and mortars look to fulfill those needs, DTCs are seeking to increase the ways in which they can reach new customers.

Collaborations with holding groups have allowed DTC brands to work more efficiently, while their bigger retail partners are able to offer smaller, innovative brands.

The success of those partnerships is evident in the increased revenue and mindshare gained by DTC brands.

And, as the retail landscape continues to evolve, more partnerships between DTC brands and established retailers can be expected, further shaping the future of customer shopping experiences.


How retailers are coping with rising retail crime

Retail crime is on the rise: A National Retail Federation survey released last month estimated that “shrink” — the term for losses in the retail sector — amounted to $112.1 billion in 2022, up nearly 20% from the year before.
But as criminals continue to exploit retailers’ vulnerabilities, stores are investing in measures to safeguard their assets, employees and customers.
Here’s how companies are coping with rising retail crime and some strategies to prevent such incidents, and one way you might increase your employee’s visibility.

1. Increased Staffing and Security Presence

Staffing up is one way to meet the challenge of retail crime.

At Best Buy, for instance, having more employees and security officers on the floor ensures a visible presence of personnel. Having more employees and security officers on the floor deters potential criminals and provides a sense of security to customers.

The increased staffing also provides better surveillance and monitoring of suspicious activities.

Additionally, mobile POS devices easily increase your employee’s presence in different areas of the store.
If your employee is free to walk around and complete sales anywhere in store, this may also be a deterrent to anyone who might try to pocket goods.

Retail Pro Prism is device agnostic enabling it to run smoothly on whatever mobile POS device you prefer to use. This means you can use an iPad, a Google phone, or HP tablet, with no extra effort or download.

Criminals are less likely to attempt theft or engage in suspicious activities when they know more employees are around who can observe and intervene if necessary.

2. Controlled Entrances and Exits

Best Buy and other retailers including Costco have implemented a strategy of having a single entrance and exit point.

By channeling customers through a single point, the flow of foot traffic becomes easier to monitor and control, reducing the likelihood of theft or unauthorized access.

Additionally, having staff members stationed at entrances and exits allows for quick and efficient checks, further deterring potential criminals.

3. Advanced Surveillance Systems

Installing comprehensive closed-circuit television (CCTV) systems is an effective strategy to combat retail crime.

The systems act as a deterrent and provide evidence in case of any criminal activity.

Additionally, advanced surveillance systems may include facial recognition technology, which can help identify known offenders or suspicious individuals.

4. Employee Training and Awareness

Companies are increasingly educating employees on retail crime prevention techniques.

That includes training on how to identify suspicious behavior, how to properly handle theft situations and when to escalate concerns to security personnel.

Empowering employees with knowledge and awareness creates a more vigilant and proactive workforce.

5. Collaboration with Law Enforcement

Companies are actively seeking partnerships with local law enforcement agencies to combat retail crime.

That includes sharing information about known offenders or criminal activities, coordinating efforts during investigations, and seeking advice on enhancing security measures.

As retail crime continues to rise, companies are looking to implement effective strategies to protect their assets and ensure the safety of their employees and customers.

By adopting a multi-layered approach, companies can effectively deter criminals and maintain a secure retail environment.


Tempered supply chain issues and strategies

Female Owner Of Fashion Store Using Digital Tablet To Check Stock In Clothing Store

As 2023 kicks off, there are still vestiges of supply chain shortages that continue to challenge retailers. Big box stores are still dealing with consequences of 2020 bottlenecks and supply chain issues.

Recent business surveys found that a majority of logistics managers don’t expect the supply chain to fully resolve until next year.

Additionally, a healthy unemployment number nationwide coupled with labor shortages and a looming recession has added to an overall disruption for general retail operations.

The bleak forecast has resulted in softer expectations in demand during the first half of 2023, with a possible uptick in the second half, making margins a key focus.

However, because that economic softness is expected to stick around, supply chains may appear to be working better because there’s simply less economic activity. 

The good news, according to analysts, is that the number of job openings, which reached its highest level in 21 years in 2022, is on its way down.

The Great Resignation has lost steam and the average quit rate is slowing.

Furthermore, the unemployment rate, at 3.4% in January, has been relatively stable since early 2022.

Having a good, reliable roster of associates is critical to moving goods.

Here are some tips to help get you through the next six months.

Retail recruitment strategies

Female Inventory Manager Shows Digital Tablet Information to a Worker Holding Cardboard Box, They Talk and Do Work. In the Background Stock of Parcels with Products Ready for Shipment.

The labor shortage is a significant challenge for retailers and will continue to be, well past COVID.

Competition is tough, so retailers are encouraged to look beyond financial rewards and invest in building a brand that focuses on culture, values and career growth.

Technology, too, plays a larger role inside the store. Omnichannel retailers encourage shoppers to order use multiple channels for a single order.

Associates receive, track and present customer orders – as well as deal with the inevitable returns.

Tools such as RIOT RFID can make these processes much smoother, faster and more accurate by taking care of the entire time intensive process of tracking products and updating counts upon return or order placement.  

This is a much broader scope of responsibilities, which requires a more advanced set of skills from the managers and staff.

A more transparent and connected system for retail management and point of sale leads to happier and more efficient staff. Retail Pro Prism provides total visibility across channels, saving your business and associates time so they can be more thoughtful, present resources for customers.

Streamline offerings

Supply chain troubles seem amplified when a retailer’s shelves are empty because several products are unavailable simultaneously.

Streamlining the types of products you offer and partnering with a number of suppliers to provide those specific types of items helps focus investment on high-impact areas.

You’ll be delivering a more consistent customer experience as well.

In addition, consider alternatives to what you currently offer without cutting back on quality of service. For example, florists may not be able to reliably source plastic vases for every order, so they might offer creative bouquet wrapping instead.

Map your supply chain

Ensure you have supply chain visibility. Surviving a supply chain shortage requires a steady flow of parts and materials.

Supplier mapping includes locations, details of what supplier provides and how critical each product is.

Understanding their inventory levels as well as your own is also crucial. Consider tracking your vendor’s supply chain as well.

Having the visibility of connected retail management across channels helps you in accounting for every order in process, giving you peace of mind.

Finally, as suppliers continue to feel the squeeze, be quality conscious.

It’s tempting for manufacturers to cut corners to meet demands quickly.

For designer brands, counterfeit goods can be a big problem when supplies are scarce.

Support your suppliers by investing in them, insisting they only accept first-rate work and authentic products, and offering credit terms if appropriate.

After all, if your biggest, most critical suppliers go out of business, you will too.


Retail – What’s causing tension in your customer experience?

Portrait of a man in the bicycle store | Portrait of a handsome bearded man as bicycle store owner or manager standing with laptop at the bicycle workshop

Get Retail Pro Prism!

Powerful POS & retail management platform for better retail experiences

✓ Replenishment & inventory management

✓ Customer & employee management

✓ Available on iOS, Android, and Windows

✓ For mobile, laptop, and desktop devices

✓ Robust pricing & promotions

✓ Store operations & back office

✓ Performance & KPI reporting

✓ Intuitive, tailorable POS


Visit Retail Pro and our partners at NRF!

4 Important Ways the Retailer-Vendor Relationship has Changed

Asian woman shop owner - young Asian woman store owner carrying shoe boxes at store

The last two years have seen dramatic changes in the retailer-vendor relationship. Supply chain shortages caused by the pandemic are still reverberating throughout retail operations.

While the online channel unsurprisingly grew in response to imposed lockdowns, the less-popular hybrid shopping model known as “click and collect,” also gained tremendous momentum.

Retail Pro’s customer ACFC was able to make BOPIS a reality early on in the pandemic thanks to Prism’s data integration and total inventory visibility.

And, although shopping has returned to pre-COVID routines, supply chain issues remain. Here are some ways retailers are handling post-pandemic challenges.

The Product Journey to the Customer

delivery man holding box up as person receiving it signs an ipad

Dropship is more popular. Published statistics show that the global dropshipping market is forecast to reach $196.78 billion in 2022, a substantial increase of  23.7 percent from 2021.

That number is expected to continue to rise, reaching $243.42 billion next year.

The uptick in retailers needing to fulfill online orders during the past two years is a big reason for the dropship surge.

Retail Pro’s ability to streamline inventory visibility across all channels and give retailers a single view makes it easier for them to reduce the margin of error in fulfilling online orders.

Retailers Expanding Retailer-Vendor Relationship

Female Inventory Manager shows digital tablet Information to a male worker holding cardboard box, explaining how their retailer-vendor relationships work

Retailers have expanded their footprint to include marketplaces such as Amazon and Alibaba, as well as social platforms including Tik Tok and Instagram.

Miniso’s UK branch was able to experiment easily with selling on Amazon in the face of tough challenges brought on by COVID with Retail Pro Prism, opening their understanding of future operations possibilities

In fact, TikTok has been experimenting with shoppable ads and shoppable livestreams indicate its readiness to compete for retailers’ attention with Instagram and Facebook.

That has boosted brand awareness not only for the retailer, but also for the supplier. As product demand increases, however, shortages sometimes occur.

Expanding selection through third-party relationships. Some large retailers, notably Lands End, Hudson’s Bay and Anthropologie have begun their own marketplaces.  

Those retailers feature channels on their websites that allow select third-party brands to sell products directly to their customers. It increases selection while letting the retailer avoid increasing the number of vendor relationships they must manage.

Automation of Operations

A female Asian retailer looking over her store's automated inventory across channels

Increasing workflow automation. Reducing or eliminating the manual creation of reports regarding orders, stock levels, and sales trends, and automating that process can accelerate the receipt of information regarding potential stock shortages.

That is particularly helpful when earmarking stock for in-store purchases; for ecommerce order fulfillment and for pickup by click and collect customers.

Automation reduces errors and makes data collection more efficient. Retailer Saleem Fabrics was able to automate their inventory to lessen challenges brought on during COVID with the help of their Retail Pro Business Partners at System Plus and Retail Pro’s software plugin capabilities.

The best supplier-buyer relationships require collaboration. Retailers and their suppliers must be committed to the long-term pursuit of value.

Working with Retail Pro and our partners means a retailer has engaged support and help to take any steps necessary for the sorts of modernizing changes in operations mentioned above.

Together, retailers and their partners are employing innovative solutions to offer joint opportunities to create and retain significant value.


Create Better In-Store Experiences with Retail Pro Prism

Good products attract customers.
Great experiences keep them coming back.
Retail Pro Prism’s capabilities gives you the tools to choose where and how you reach your customers, and the POS data to inform your approach.

POS Shopper Data

Shape your CX strategy with pertinent shopper data collected in the POS workflow.

Personalize recommendations

Make personalized recommendations with access to customer details in Retail Pro on mobile.

Inventory Visibility

Give shoppers all the options when you’re out of stock with total inventory visibility for every location.

Let’s Talk About Omnichannel Returns

Female Inventory Manager Shows Digital Tablet Information to a Worker Holding Cardboard Box. In the Background Stock of Parcels with Products Ready for Shipment.

The customer journey may always start with shopping, but it doesn’t necessarily end on a happily-ever-after note. Sometimes, the item just doesn’t meet expectations and the customer makes a return.

The return rate for the retail industry in the U.S. and Canada averages 8% of total sales, according to retail analytics firm The Retail Equation.

Returns are a “reverse logistics problem,” but also a fact of life for retailers, which cost time and money.

Because of that, it seems counter-intuitive to invest in improving the returns process — but it’s absolutely imperative. Having a good returns experience can help retain customers, and gaining a reputation for it can actually attract new shoppers.

It’s estimated that between 25 and 50% of online purchases are currently returned, so making the process simple and convenient is vital.

Retail flexibility for returns is a must in the omnichannel: after all, the customer can buy in any number of channels, so returns should have similar options as well.

In having omnichannel capabilities for customers to make returns, retailers can use the return as an opportunity to immediately offset any costs of returns. The retailer can use clienteling through whatever channel the return process is started; suggesting products in line with the general trends of their purchase history.

With a wealth of plugins available, Retailers can customize their omnichannel operations to offer return processes that are convenient for customers and work seamlessly with their retail and inventory management.

Order Management and the channels for returns

Female seller worker online store holding scanner scanning parcel barcode tag packing ecommerce return post shipping box checking online retail store orders in dropshipping delivery service warehouse.

Once a return happens, being able to make that addition to inventory available soon after receipt increases the opportunity of achieving a full-price sale.

An order management system can provide instant visibility of returning goods, regardless of how they are being returned — to a store, through a courier service or directly to a warehouse.

In addition, having visibility of these items available allows the order management system to develop fulfillment decisions on how and where items should be sold to maximize profits. 

A survey from Inmar found that most shoppers want to return in-store, largely due to the hassle of packing up a return.

Brick and mortars can benefit by enabling in-store returns of online purchases, as that drives store traffic and provides an opportunity to immediately recapture shoppers’ initial expenditures. Approximately 30% of Inmar survey participants said they “usually” or “always” stay in the store and shop with their refund money. 

AppCard for Retail Pro provides a retailer with great tools for building personas for retailers various clients and personalize recommendations for them.

The future of returns and making them easy

A shopper holds up a new dress to decide whether to return it or not.

Some e-commerce retailers such as Amazon make the return experience easy by requiring little to no packaging by the customer, allowing returns in different store locations, including return shipping labels in deliveries, as well as a QR code that can be used at a predetermined courier, which also increases efficiency for the retailer

Returns are an important element of a new online sales cycle: Increasingly, shoppers are employing a “buy and try” approach and they expect sellers to cooperate.

Research has found that much of the returns growth is due to shoppers purchasing more than one of the same or similar products with the intention of keeping one and returning the others.

Retailers must recognize the changing role of returns, understand that they will likely increase rather than decrease due to this new customer mindset, and optimize their processes to adapt and maximize customer satisfaction.


How are you streamlining your omnichannel store experiences? Let's talk.
Request Demo

Scaling Omnichannel Operations for Connected Experiences with Retail Pro Prism

Woman shopping on her phone in front of the same storefront which has omnichannel operations

Customers love retailers with omnichannel strategies. Shopping is on their terms: They can choose the time, the location and – if they change their minds – the way to make the return.

No longer are the channels online stores and brick and mortars; today, a brand can also sell products through pop up storefronts as well as Instagram and Snap Chat.

It’s all about connecting with customers at their convenience.

When retailers give customers the flexibility to choose the way they shop, they are also able to connect and provide personalized promotions and timely recommendations. OptCulture for Retail Pro opens up the ability to create personalized promotions and loyalty programs by unifying customer data across channels.

With so many points of engagement between customers and brands, scaling operations is challenging.

Today’s shoppers don’t consider brick and mortar and online stores separate shopping destinations. Instead, they expect unified experiences across every touch point. Retail Pro Prism makes it possible to offer this convenient, omnichannel buying experience.

Order Management and flexible fulfilment

a woman picks up an order from an omnichannel store with omnichannel operations

Order Management is critical for a holistic commerce strategy. It connects omnichannel demand to omnichannel supply.

Buyers have insight into inventory across all sales channels, accurately and in real time.

Retail store associates, dropshippers, warehouses, distribution centers and third-party fulfillment providers use commerce technology to fill and deliver orders efficiently.

A system that has communication between each channel and allows seamless management of inventory and stock replenishment to take place is important for providing omnichannel and minimizing strain on your supply chain and operations.

Determining the best fulfillment options means finding solutions that shorten the distance to the customer, increase delivery speed, and reduce costs.

The omnichannel model emphasizes shipping from decentralized inventory sources, such as ship-from-store, buy online pick-up in-store, ship from a partner, or drop-ship from a manufacturer.

Making the right decision improves customer service, because delivery is quick, accurate and cost-effective. Ensuring the ‘last mile’ is optimized by collecting the data in a centralized visual analytics tool saves you money, time, and frustrated customers.

In a warehouse fulfillment model, orders are picked using a variety of methods, including discrete, zone, or wave picking or any combination.

Filling orders from a store limits the type of picking that can be done and retailers often use discrete picking and fill one order at a time. The benefit to in-store picking, however, is the proximity to the customer, who may opt for curbside pickup, eliminating shipping charges.

Curbside pickup has its advantages for shoppers in a rush but for retailers, enticing customers inside to make additional purchases has bottom-line benefits.

However, Pick-up-in-store customer personas are different from an online-only or in-store-only customer personas: They want immediate gratification — they can’t or won’t wait for shipping. 

This is a demanding group that generally has little tolerance for friction during pickup. Therefore, clear, precise messaging about when the order will be ready and instructions for pickup are imperative. The pickup process can be made even more streamlined and convenient with Retail Pro Prism mobile POS.

And the pickup purchase process should be quick and easy for customers and employees. Customers’ perceived value of in-store pickup will evaporate if they can find the item on the floor faster.

Inventory management strategies and shipping

asian woman shop owner - young asian woman or shop assistant with shoe boxes at store

Shipping from the store can get customers their orders delivered more quickly. But other times, the warehouse is closer to the customer.

Having the option to ship from one location or the other is critical for flexibility and to keep customers satisfied.

In-store cycle counting can help by keeping inventory counts up to date and confirmed, so at fulfillment time products are where they are expected to be.

When they aren’t, sometimes items have simply been misplaced: an RFID system can help locate them very quickly. With RIOT RFID for Retail Pro, retailers can locate items out of the line of sight and complete inventory counts in a matter of minutes at an affordable price.

Customers have high expectations of how their shopping experiences should unfold, and retailers have a full plate managing and fulfilling orders while recognizing the unique characteristics of every consumer.

What delights one customer may not work for another. Retailers must be flexible and willing to implement customer feedback to create an efficient, intuitive customer experience that, ultimately, is profitable.

Retail Pro Prism POS gives you the flexibility and customization needed to connect your physical and digital store experience: offer customers fulfillment options, empower associates to order specific products from another store, discover shopper insights, and more.


Meet stock availability expectations across channels with Retail Pro Prism

In the shopper’s mind, your website reflects your store, so they look online for stock availability.

Some may complete the purchase online, but others may want to see the products in store first or pick it up as one to-do item on a longer list.

Save your customers from the poor experience of showing up at your store with the website’s promise of having the product they need – only to find that you’re out of stock.

Request your consultation now >


Unify inventory information across channels with Retail Pro Prism

a sales woman viewing stock - inventory of a certain box of teas using a mobile POS tablet
  • See inventory in the warehouse, in transit, in the back room, or on the sales floor
  • Update in-store inventory counts online by integrating ecommerce with Retail Pro
  • Keep accurate inventory counts with integrated, affordable RIOT RFID for Retail Pro
  • Leverage in-stock items from your other locations to save every in-store sale

Request your consultation now >

NRF 2022: Connecting your physical and digital store experience

Building an omnichannel strategy brings up myriad details to think through:

  • Can customers see store stock availability online?
  • Do both e-commerce and in-store purchases score points for loyalty?
  • Can we tap into our inventory sold elsewhere for an in-store endless aisle?
  • What is the process for restocking returns from online purchases?
  • How will we handle picking and fulfillment for orders placed in-store?
  • How do we improve shopper experiences with what we’re learning from our data?

Request your consultation now >

Request your consultation now >


Retail Pro Prism: Platform POS & retail management technology

tablet and desktop POS

Take control of omnichannel store operations with flexible Retail Pro Prism POS and retail management software.

  • Get total data visibility across the enterprise worldwide
  • Centrally manage and regionally tailor all your subsidiaries and locations
  • Go global with localizations for any world language, currency, and tax structure
  • Dig into integrated POS & ERP data to get the right products to the right stores
  • Empower associates to get answers for customers with lookup and orders on mobile POS
  • Discover shopper insights with unified POS, ecommerce, website, and social media data
  • Act on insight with AI-powered personalized marketing and promotions
  • Get full POS functionality on the desktop or mobile device of your choice

Request your consultation now >