Issue link: https://viewer.e-digitaledition.com/i/1518043
18 • Footwear Insight ~ March/April 2024 footwearinsight.com Business Insight By Alan Miklofsky & Kim Miklofsky Bayne T o enhance their profitability, i n d e p e n d e nt s h o e re t a i l e r s must improve their operational efficiency. e utilization of today's emerging technologies should lead to a higher return on investment. e most successful retailers understand the importance of collecting and analyzing information in order to make better decisions in the future. ey already train their staff to effectively use accounting systems, merchandising management systems, email marketing programs, customer facing websites, and social media platforms. A wise owner/ operator aims to increase efficiencies, control costs, and explore new markets and services. Our industry is one where growth is essential for survival. However, there are considerable roadblocks to achieving growth. • Consumer traffic has been declining for many, many years. • Online buying of footwear has been proven successful and pulls traffic from your business. • Expense growth in recent years, coupled with declining traffic count, has negatively impacted abilities to post adequate sales gains. Gains are occurring based on price inflation, but likely the number of units going out the door is declining for many shoe retailers. • Selling shoes online gave many independent retailers hope, but • If you took on the tactic of selling shoes as a third-party retailer, it probably wasn't profitable and was a distraction. • Retailer websites for retailers haven't been successful for every small retailer. It depended largely on that retailer's ability to invest in technology deploying website enhancements, recruiting talent and executing well. • Now, the use of AI by "the big guys" threatens retailers seeking to maintain their market share. Historically, the success of independent retailers has hinged on their ability to cater to customers with timely access to the appropriate products complemented by exceptional service. Service encompasses both attentiveness and expertise, culminating in a customer experience that fosters loyalty and repeat business. Unfortunately, loyalty has oen been compromised by competitors who lure customers way with enticing offers and services. • A properly directed shoe store operation has a social media and email marketing campaign that engages the public and encourages traffic to the retailer's front door. • Without a functioning e-commerce site to show the store's product offerings, the job is only half done. • Without a means to maximize sales on that website, the site fails. e era of AI has already begun, the major retailers are already using it, and it is time for the independent shoe retailers to take on the challenge of employing it in their businesses. Keeping up with these technologies and best practices has already challenged many retailers, but with the introduction of artificial intelligence (aka "AI") staying ahead of the curve will become even more difficult, because the pace of change is so rapid. If internal abilities and systems are insufficient For more information on Alan, visit his LinkedIn page at: linkedin.com/in/alanmiklofsky HARNESSING AI FOR GROWTH A New Era for Independent Footwear Retailers