The Challenges
E-commerce is hitting the clothing retail sector hard. In recent years, we have seen major brands closing their stores, such as Nordstrom and Foot Locker.
This trend is not going to slow down; on the contrary, it is likely to expand to other sectors of retail, such as the appliance industry, as exemplified by the Centre du rasoir.
Does this mean it’s game over for these stores? I don’t think so. E-commerce will only reshape how commerce establishes itself in a territory. Consumers enjoy seeing their retail stores in downtown areas for exploration. They are increasingly buying online afterward. The current challenge of e-commerce is delivery time. We want our purchases to be delivered as quickly as possible. Just a few years ago, delivery within 72 hours was necessary; now the goal is 24-hour delivery! If this trend continues, we can imagine that in a few years, competition will be based on instant delivery (in less than one hour).
This requires a better network of territories and the existence of mini-warehouses to deliver so quickly. We are talking about urban logistic micro-hubs where the retailer must be at the heart of their customer area. Therefore, the issue is less about store closures and more about adapting these stores into logistic micro-hubs. In other words, it is about rethinking the layout of commercial spaces to keep them attractive for consumers when they visit and allowing them to discover new trends while maintaining ample storage space for delivery.
Thus, in light of changing consumer purchasing habits and the rise of e-commerce, the clothing retail sector must rethink its distribution strategy to remain relevant in the market. The main challenge is to identify optimal locations for these warehouses to ensure effective territorial coverage and rapid delivery to customers.
Never has a thorough analysis of the territory been as important for retailers. It requires finding a location close to roads for quick movement and simultaneously close to customers for prompt delivery while maintaining visibility.
In addition to the specific criteria of the trade, retailers must now consider:
- Access to roads, while also considering a small trend towards pedestrianizing shopping streets (see pedestrianization in Europe or the Mont-Royal area in Montreal during the summer).
- Premises allowing for flexible layouts.
- Understanding their trade area from their location to see how quickly they can deliver to their most distant customers.
The Solution
To meet this challenge, there is a simple method: zoning your trade area not in terms of distance but in terms of time, known as an isochrone map.
The advantage of this method is that it considers both road access and displays the delivery area based on duration!
You can do this manually by measuring travel time yourself on Google Maps. To do this, take the point of your location and at least 4 to 8 other points to estimate travel time. This will allow you to draw an approximate circle to estimate travel time.
Today, there are not many computer tools available for creating isochrone maps. However, if you use CivGEO from Civision, we allow users to create isochrone maps by simply entering their address.
To do this, log into your account. Go to the zoning tool and enter one or more addresses. Finally, specify the maximum travel time (10 minutes, 30 minutes, 1 hour, etc.). Then, based on the number of addresses you entered, isochrone maps will appear.
Result
You can now study your territories and optimize the network of your new urban boutique/logistic micro-hubs.
This will make you more agile in the e-commerce competition by promising short delivery times. By choosing the best location for deliveries, you will enhance customer satisfaction because you deliver to your clients more quickly and do not suffer from the new delivery time standards set by major companies.
You will save by optimizing the number of these mini-warehouse openings by looking at both the location of your customer base and the areas you cover. This will be both a monetary and environmental saving. By optimizing your location, you will be closer to your customers and further optimize your travel time.
