Lightspeed Commerce CEO Dax Dasilva believes that the traditional model for inventory management is outdated and inefficient, comparing it to a bike ride on a sandy beachfront. With increasing customer demands, he sees endless aisle as a way for smaller retailers to compete. Endless aisle allows consumers to order from a virtual store while shopping in person, bridging the gap between in-store and online shopping and removing the limitations of physical inventory.
Dasilva, who leads a commerce platform providing independent retailers with solutions like inventory management, has seen how these tools can be combined into an endless aisle model to help businesses compete with big-box stores. To effectively leverage endless aisle solutions, companies can establish direct connections between high-value brands and retailers through a streamlined supplier network, as well as implement robust inventory management systems for optimized distribution channels and efficient order fulfillment.
Small retailers have historically struggled to compete with big-box stores in terms of inventory management, with 91% of SMB retailers feeling that larger companies have an advantage in procuring inventory. To address this issue, businesses need to find ways to directly connect suppliers, brands, and retailers. Providing access to suppliers’ full digital catalogs can facilitate deeper collaboration and real-time visibility of inventory, allowing stores to offer a complete range of products.
Sophisticated value-adds like drop shipping, same-day delivery, and personalized recommendations were once exclusive to larger corporations but can now be accessible to smaller businesses with a robust endless aisle system in place. Companies like Bonobos and Best Buy have successfully implemented endless aisle technology to improve customer service and supply chain management. As smaller retailers look to adopt these technologies, they should focus on defining their goals and tailoring the adoption of technology to suit their specific needs.
Looking to the future, Dax Dasilva envisions an easy-to-tailor, “out-of-the-box” endless aisle solution that connects thousands of independent retailers with top brands, manufacturers, and products. While larger enterprises have experimented with these technologies to determine best practices, the goal is to scale these innovations for the broader industry. Once implemented, these systems should be closely monitored and adjusted as needed to measure their impact on the business.
Innovating an “out-of-the-box” endless aisle network will likely involve lessons learned from larger enterprises, such as kiosks and showroom approaches, to allow customers to view and touch products at smaller retailers without sufficient space to stock them. The key to success lies in connecting brands, suppliers, retailers, and consumers within one network. As endless aisle technology provides smaller retailers with similar tactics as big brands, it is important to maintain unique elements that create a localized appeal to customers.
