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How technology is driving the independent sector


By Henry Morland, chief product officer, Brightpearl


Te number of independent retailers in the UK is at its highest level in four years. Te latest survey by the Local Data Company in conjunction with the British Independent Retailers Association also show a net increase of 432 new independent stores in the first half of 2014, marking a 0.41 per cent increase in the business population and the highest overall figure since 2011.


In fact, independents now account for 66 per cent of all retail and leisure units in Great Britain as a whole – Caledonian Road in North London, for example, had the highest percentage of independents, with such retailers accounting for 89 per cent of the shops. It certainly seems that the momentum is building in favour of the independent retailer and this growth is being driven by a number of factors. Ultimately, consumers are talking with their feet, preferring to spend money locally and in non-chain stores, and independents are using this to capitalise on the struggles of those major retailers that have fallen behind the curve when it comes to customer expectations. Without doubt, a major driving force


in the growth of the independent sector is the availability of accessible technology. Online sales channels extend the reach of retailers far beyond the high street, allowing them to attract customers from around the country and the world. Tese businesses, therefore, have greater growth potential. Living up to this potential, however,


is not easy. Managing a multi-channel operation presents a myriad of challenges – both to small independents and to large multiples. New technology acts to level


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the playing field when facing up to these challenges. Trough software-as-a-service (SaaS), small retailers can access tools over the internet that were previously only available to retailers with huge IT budgets


Taking stock


Take the issue of stock control. It has long been assumed that independent retailers are in a weaker position than their giant competitors, because they simply cannot compete on the reduced prices associated with economies of scale. Te likes of Amazon and Tesco can afford to offer star products at special prices, making up their margins elsewhere, whereas for independent retailers, every penny counts. Te benefit for independents, however, is the flexibility and agility lower levels of stock allow them. Tis season’s ‘must have’ item can change overnight, and independents can use this to their advantage, offering the products their customers want with far greater ease. To achieve this, smart stock control


is essential – with great visibility comes greater power to pivot a buying strategy. However, in a multi-channel environment, visibility of stock becomes increasingly tricky. Tis is where technology comes


into play, allowing retailers to offer the same stock over multiple channels without the risk of double selling.


Return to sender


We’ve explored the ever-changing nature of the consumer and an independent retailer’s need to evolve accordingly. Which leads neatly onto the topic of returns. Returns are having their moment – one in three apparel items sold online are returned as consumers increasingly use returns processes in the same way as they may once have used a shop changing room. Te challenge for independent retailers is to find a way to match the returns offers of the big chains – ASOS, for example, makes returns incredibly easy, providing a paid for return address sticker and easy-to-complete form. Shoppers want returns to be hassle- free, expecting retailers to handle any complexities and costs. Te problem for smaller retailers is the


pressure this places on their inventory management and margins – the costs of return logistics like postage, preparing goods for resale and making them available again on all your channels, can make the difference between making a profit or not.


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