As retailers address dynamic demand patterns, they can flexibly expand their distribution networks to maximize in-store fulfillment and keep fast-moving SKUs close to stores.
Key Takeaways
- “Buy online, pickup in store” (BOPIS) grew more than 500% during the COVID-19 pandemic. Analysts predict BOPIS will top $100B in sales in 2022, a 21% increase year-over-year
- Now, 59% of consumers expect BOPIS as a shopping option and love the convenience it offers. If goods sell too quickly in stores without an effective distribution strategy, customers face stockouts. Stockouts mean lost sales and reduced customer loyalty
- Retailers reassess networks when leveraging in-store fulfillment to hold fast-moving inventory close to stores. Flexe Rapid Replenishment builds network flexibility without slowing retailers down
Retailers accelerated BOPIS strategies amid pandemic disruptions #
To safely meet customer needs amid the COVID-19 pandemic, retailers pivoted to “buy online, pickup in store” (BOPIS). It grew more than 500% during the pandemic. Big brands, like Walmart and Target, capitalized on evolving customer expectations, boosting in-store fulfillment and utilizing store footprints. Target fulfills approximately 95% of its eCommerce orders within its stores. Now, 59% of consumers expect BOPIS as a shopping option and love the convenience it offers.
Retailers can capitalize on in-store fulfillment to meet customer expectations and save on last-mile transportation costs. Plus, retailers can mitigate supply chain disruption by using physical stores as mini-fulfillment centers. Forty-five percent of retailers did so in 2021.
Analysts predict BOPIS will top $100B in 2022 sales, a 21% increase year-over-year. And store transactions will likely exceed $200B by 2027.
Many stores can’t meet distribution and in-store fulfillment demand #
There are drawbacks to in-store fulfillment. Retailers don’t design stores to hold backstock inventory. And small backroom footprints hinder eCommerce fulfillment. Online purchases and traditional store sales destabilize inventory counts—especially for seasonal or high-demand SKUs.
A BOPIS strategy balances in-store inventory with additional inventory in regional distribution centers. Stores then restock quickly through local distribution networks. This means placing the right inventory in the right locations at the right time.
If goods sell too quickly in stores without an effective distribution strategy, customers face stockouts. Stockouts mean lost sales and reduced customer loyalty. Seventy percent of consumers plan to switch retailers or brands to avoid stockouts.
Stop stockouts and maximize in-store sales with the Flexe Rapid Replenishment Program #
When retailers leverage in-store fulfillment, they may reassess their distribution networks, add distribution nodes and place fast-moving inventory close to stores.
Traditional supply chains aren’t designed to adapt fast or cost-effectively. Retailers can add owned warehouse nodes to their networks, but it’s a costly strategy. And industrial vacancy rates sit at record lows.
One alternative creates distribution flexibility without slowing retailers down: the Flexe Rapid Replenishment Program.
A Rapid Replenishment Program:
Drives inventory replenishment within 24 hours via regional distribution centers
Prioritizes speed and flexibility, with site activation in weeks
Provides visibility across the distribution network
Integrates retailers into the Flexe Logistics Network—North America’s largest warehouse network
Leading retailers utilize Rapid Replenishment Programs, avoid stockouts, improve customer experiences and increase sales—online and in-store.
In Action: Global coffee company tackles peak season challenges with a Flexe Rapid Replenishment Program #
One of the world’s largest coffee retailers implemented the Flexe Rapid Replenishment Program to solve peak-season challenges, processing up to 5,000 retail replenishment orders per day. The retailer began processing orders in a matter of weeks—delivering goods into stores fast.
The retailer avoided stockouts and maintained in-store sales amid demand spikes and peak disruptions. All without upfront CapEx investments or long-term leases.
Avoid Stockouts and Lost Sales
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