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A Journey into the Specialty Store

30/09/2023

As highlighted in the 21st edition of the Non-Food Observatory by GS1 Italy, the non-food sector in Italy recorded an annual turnover growth of +4.3%. In 2022, with the full reopening of physical stores, the Non-Food retail landscape shifted once again. Retailers resumed investing not only in new store openings, but also in the refurbishment of existing shops and in streamlining their store networks. Customers returned to shopping in brick-and-mortar stores, particularly specialty stores, which continue to lead in many segments thanks to their know-how, personalisation, and high levels of service.

How can this trend be sustained and how can retailers remain attractive to consumers? How are specialty retailers adapting, including through the use of technology?

Some key areas to focus on are:

  • complete assortment: consumers entering a specialty store expect a full range of products within a given category—far more comprehensive than what they might find in a generalist superstore. For this reason, it is essential for specialty retailers to adopt retail management solutions that enable close monitoring and control of product turnover, while minimising out-of-stock situations. This can be achieved through accurate insight into both sell-out data and inbound stock flows. Other key elements to monitor include product facing and price consistency, ensuring that shelf prices are updated in real time and aligned with the checkout system;
  • dedicated sales assistants: efficient in-store operations allow staff to focus on building personalised relationships with customers—an essential element in creating the kind of engagement that encourages them to return to the same store;
  • Consumer interaction before and after the purchase experience: a physical store alone is no longer enough. The lockdown period accelerated the growth of e-commerce and got even the most reluctant consumers used to shopping online. Now more than ever, it’s important for a specialty store to be present before the purchase—through dedicated apps and targeted promotions—and after, to understand the customer’s experience, measure their satisfaction, and offer them new opportunities to engage.

The emerging landscape is defined by the integration of physical and digital channels—an essential step in creating a smooth, memorable shopping experience capable of attracting and retaining customers.

Visiting a store is becoming more of an option than a necessity.
This means that the physical shop can serve both as a convenient collection point for items purchased online (click & collect), but also as a space for offering enriched experiences to customers. For example, it can become an educational hub where customers attend workshops on topics of interest—from cooking and DIY to plant care and pet wellbeing.

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