Is it possible to run more stores without increasing operational costs?
Sooner or later every store reaches its maximal profitability level, and from the owner’s perspective expansion is the only way to grow and increase revenue. Opening more stores requires large investments. On the one hand you need to cover the cost of opening a store and setting it up. On the other hand you must also be prepared for increased operational costs. Is it possible to cut the costs of expansion?
The cost of opening a new store goes well beyond the actual property and shop equipment. If you want to expand, your investment will have to be substantial. Budget-wise you must always take into account operational costs which can be quite a burden especially early on, after opening a new store. In general the owner should be financially prepared to cover the first few months of running a new store. Is there a solution that could ease the financial burden of expansion?
Data gathered by Europe’s first autonomous store chain Take&GO shows that it’s not only the customers who can benefit from state-of-the-art technology. According to Take&GO implementing autonomous solutions without staff reductions makes it possible to manage up to 50% more stores without increasing operational costs.
How does it work? An autonomous store does not need cashiers, so all employees can be re-assigned to restocking other stores. This means flexible working hours, reduced work complexity and a higher level of safety during a pandemic. Those who fear a world in which robots have eliminated the demand for human labor, can breathe a sigh of relief.
Autonomous stores offer a 50% reduction in losses thanks to merchandise tagging and algorithm-based restocking. Another advantage is the possibility of creating a central warehouse with logistics centers serving stores located in the same city which makes it possible to increase store size by eliminating the need for storage space inside the stores. Also, an autonomous store runs 24/7 with no shift work required.
If you’re planning to grow, you must assume the investment will bring substantial revenue compared to the costs. In order to stay competitive and achieve stable revenue in the long run, you need to invest in future solutions today. Looking at the data gathered from first autonomous stores and taking into account current technological trends it is clear that the role of autonomous retail will become more and more important. If you’re planning to expand your chain, you should invest more in autonomous solutions which will bring you substantial and stable revenue in the long run.