South African retailers have reasons to be positive after a tough few years. Consumer confidence has surged back to pre-pandemic levels, driven by increased optimism about personal finances, and retail sales are starting to bounce back after a long period of flat growth. 

That means that now is the ideal time for retailers to start investing in their growth again, says Steven Heilbron, CEO of Capital Connect, a fintech that offers fast and flexible unsecured business funding to retailers. With today’s fintech lending options, they can get up to R5 million in quick financing, without jumping through hoops, to capitalise on the revival in consumer spending and confidence, he adds. 

According to Heilbron, some of the opportunities you should consider include: 

1. Flash inventory buys:  Quick access to capital allows you to stock up fast, take advantage of bulk discounts at reduced rates and ensure you have inventory to meet customer demand. Purchase inventory at time-limited prices when your suppliers need to move inventory. Or stock up ahead of price increases to sell goods at a higher margin or run aggressive promos. 
2. Store revamp: Get an edge by investing in high-impact store upgrades, such as new signage, layout enhancements, or lighting. This can help make your shopping environment more efficient. Even small physical changes can boost customer experience, foot-traffic and increase wallet share per visit.
3. Pop-up shops: You could leverage quick financing to set up a pop-up store in a high-traffic area or at an event such as a concert to capture new customers and drive brand awareness. 
4. Add a containerised shop: Think out of the box with a containerised coffee shop or takeaway to boost revenue and footfall. A containerised shop is a fast and cost-effective way to scale your business. It requires minimal approvals and can be relocated when needed.
5. Diversify your offering: Diversification can help your business maximise revenue growth in good times as well as protect your bottom-line in slower periods. Consider adding additional profit centres (APCs) like new product or service offerings to expand your customer base. Options range from adding organic foods to your supermarket offering to adding new product lines such as clothing. Research* shows that the general dealers sub-sector is one of the fast-growing categories with growth for 2024 forecasted at nearly 8%.
6. Invest in omnichannel: Offering customers a choice of online and in-store shopping options is a major driver of growth. Let customers choose whether they want to get products delivered or pick them up in store; offer the same choice for returns. With opportunity capital, you can invest in your ecommerce presence and logistics. 
7. Consider high-margin convenience offerings:Retailers are growing revenues by offering grab-and-go meals or coffee to busy consumers. Bakeries, fish shops, cheese bars, and delicatessens are other options. Using some floor space in this way can be a highly efficient way to attract customers and add a new revenue stream.
8. Prepare for seasonal events:You can use fast financing for marketing campaigns and promotions ahead of seasonal events such as back-to-school, back-to-work, Valentine’s Day, Easter and the festive shopping season. Another idea is to leverage the capital for shopper-tainment experiences like Easter chocolate tastings or in-store product demos and workshops. 

Says Heilbron: “Fast, fintech short-term funding tailored to retailers’ unique needs is key to capitalising on opportunities to grow your business. Capital Connect offers short-term retail business funding of up to R5 million, with funds in the retailer’s bank account in just 24 hours. 

“You can apply for a smart loan by clicking and borrowing from an app, with minimal red tape and no need for audited financials. We offer repayment in easy daily instalments to help you manage your cash flow. Our opportunity capital means you never miss out on growth opportunities due to slow loan approvals.”

*Research conducted by the Bureau of Market Research, on behalf of Capital Connect.

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