18/03/2024 The online stores (dark stores) are gradually becoming a trend – opening up a new turning point for the retail chain – an ideal place that will make a significant step forward for this operation. Let’s explore this trend more deeply with Goong.
The success of the “Dark store” model – (online shops) has emerged as one of the crucial determining factors in retail operations, especially post-pandemic and amidst the increasingly modern technological landscape. Dark stores intensify competition by committing to faster delivery, enabling them to provide customers with essential products in the quickest possible time.
Since the advent of the pandemic, ultra-fast delivery services bringing goods directly to customers within 10-15 minutes have emerged in major U.S. cities and are gradually becoming a new global trend, including in Vietnam.
Retail giants, post-isolation measures during the pandemic, have realized that marketing strategies must be adaptable to shift from direct customer foot traffic to online ordering (and sometimes vice versa). Adapting to these changes is essential to promptly and accurately meet customer needs – thus, the concept of Dark stores has been formed.
WHAT IS A DARK STORE?
As a reliance on physical proximity for in-person shopping shifts to a preference for social media engagement and online purchases, dark stores are all the rage. Dark stores mimic traditional supermarkets, department stores, and micro businesses, except shoppers aren’t allowed inside. Instead, employees receive online orders, take requested goods from the shelves, and ship them to the customer.
When direct shopping shifts towards prioritizing online purchases, dark stores become more popular. Many retailers have decided to transition from traditional storefronts to dark stores to improve inventory management processes.
During the prolonged epidemic, consumers’ physical interactions have been restricted, but they haven’t stopped shopping. They’ve adapted to the new normal by switching to online shopping to meet their purchasing needs. This translation is more concise and idiomatic, while still conveying the same meaning as the original sentence. Let me know if you have any further questions!
Retailers have adapted by investing less in brick-and-mortar stores and focusing more on online markets. By establishing “dark stores,” innovative companies have been able to thrive in a volatile time for traditional retailers.
Goong assists businesses in optimizing their store locations using real-time data, geolocation, and demographic information to provide the most efficient delivery routes for customers. This technology is being used by leading e-commerce companies to optimize the location of their warehouses and improve their logistics.
BENEFITS OF USING DARK STORES
Businesses that have established dark stores have been able to reinforce their interaction with customers in the face of rapid changes in the retail market. Here are some benefits of using dark stores worldwide:
Affordable real estate
Dark stores take previously-undesirable store spaces and turn them into convenient distribution centers. Typically, the best storefronts are located in high foot-traffic areas, which are expensive to rent out. Since dark stores can be successful in low foot-traffic or drive-over areas of the city, dark store operators can set up well-placed shops without paying exorbitant rent prices for the hottest street in town.
Optimizing the Efficiency of Store Usage
Dark stores can accommodate a larger workload and generate higher income than the traditional retail stores they replace. With higher production intensity, dark stores can produce more, sell more, and yield greater long-term profits. They can help many businesses enhance productivity by generating data to provide comprehensive insights into sales planning, optimizing the supply chain, and risk management.
Quick and contactless shopping
Customers are increasingly shifting towards more contactless online shopping in the post-pandemic world. Many individuals cannot be without their smartphones, favoring online shopping and using mobile apps to expedite transactions. Dark stores provide the convenience and ease that consumers desire.
Meeting customer expectations in time
Dark stores allow retailers to optimize the order fulfillment process and earn customer trust. Customers will be familiar with the accuracy of placing orders online with your brand, preparing orders quickly at the store, and delivering promptly, thereby increasing the likelihood of becoming long-term loyal customers. With the APIs provided by Goong, retailers can design an optimal distribution network for efficient transportation and on-time delivery.
HOW TO CREATE FOOLPROOF DARK STORE STRATEGIES
Location Analysis: To avoid an overwhelming amount of data, business owners must focus on location analysis. They can utilize location technology to analyze potential locations for dark stores and efficiently utilize each location. Businesses can use data from digital maps for effective location analysis of dark stores, transportation planning, and easier location selection.
Consumer Behavior: Another way to increase success rate is to analyze consumer behavior. By comparing data from online shoppers and in-store shoppers, retailers can bypass much guesswork in marketing and identify the products that customers prefer.
After analyzing the differences in location and consumer behavior, businesses can determine which stores are more suitable for in-person shopping and which are better suited for online shopping. They can identify which areas need to provide what types of goods….
HOW TO TURN YOUR STORE INTO A DARK STORE WITH GOONG
When analyzing the locations of retail stores, business planners can use geographic tools to create a better market plan for dark stores. Here are some ways customers use Goong to implement their dark store strategy:
Utilizing transportation data to identify active and quiet areas in the city at different times.
Using Maps SDK to display order locations in heat maps, identifying hotspots. Also, syncing around each location to analyze gaps between distribution areas or excessive overlap.
Leveraging our Navigation to assist delivery drivers in meeting delivery time commitments and enhancing customer satisfaction.
Goong simplifies every phase of running a delivery business – and is powered by Goong Data. From designing your distribution network to delivering on time to delighting your customers, check out our https://account.goong.io/ page for more information, customer stories, and how to get started.
