Variety stores are popping up everywhere, gaining increasing popularity worldwide. Brands like Miniso, Daiso, Flying Tiger Copenhagen, and others have become favorites thanks to the fun, convenient, and cost-effective shopping experience they offer customers. However, managing stock in variety stores is one of the biggest challenges in retail due to their high turnover inventory.

In this blog post, we’ll dive into the world of variety retail: what it is, how it differs from multi-brand retailing, the challenges it faces, and the best strategies for achieving stock accuracy in these challenging stores.

What Are Variety Stores?

Variety retail stores refer to shops that offer a wide range of products across multiple categories, usually, household goods, stationery, DIY items, toys, and more all in one convenient location. Their popularity stems from the convenience of finding everything you need in a single place, often at budget-friendly prices.

These stores have gained immense popularity in recent years, offering an affordable, approachable, and enjoyable shopping experience that appeals to a broad range of consumers. This includes pet owners stocking up on supplies, parents buying toys, artists purchasing craft materials, and many more.

Another key feature of these stores is their fast inventory turnover. This creates the exciting feeling that every visit offers something new—products that weren’t there the last time and may sell out before your next visit.

Examples of Variety Stores

Some popular variety stores include Miniso, Daiso, Flying Tiger Copenhagen, Don Quijote (Donki), and Kenji. These stores have become so popular that customers often find them irresistible, walking in even when they don’t plan to buy anything.

Variety Retail vs Multi-Brand Retail

Variety retail refers to stores that sell multiple types of items, which may include private-label products or those from various brands. On the other hand, multi-brand retail focuses specifically on combining products from multiple brands within the same store. These products can be from a single category, such as clothing or shoes, or span across different categories.

At a high level, variety retailers can also be multi-brand, but this isn’t always the case. The distinction lies in the scope and focus of the inventory—variety retail emphasizes a diverse range of products, while multi-brand retail centers on showcasing offerings from different brands.

Challenges Faced by Variety Stores

Variety retailers face unique challenges due to their fast inventory turnover. New collections often arrive weekly, with items selling out within a matter of weeks. This rapid cycle makes it extremely difficult to keep track of everything and maintain stock accuracy. The challenge is further compounded by the sheer variety of products, including many small-sized items that are tedious and error-prone to count manually.

Adding to this complexity are issues like theft, loss, and process failures. These problems are common in the high-turnover environment of variety stores, where inventory moves quickly and the chance of human error is high.

Another major concern arises when customers are drawn to stores by promotions or the promise of new arrivals, only to find the items they desire are unavailable. Even worse, store employees might be unfamiliar with the advertised items, leading to a disappointing customer experience.

To avoid situations where products remain unsold due to poor visibility or stores are frequently out of stock, close inventory tracking is a must. Effective stock management not only maximizes sales but also enhances customer satisfaction and builds long-term loyalty. In this competitive industry, staying on top of inventory accuracy is not just beneficial—it’s a necessity.

How to Achieve Stock Accuracy in Variety Retail

Variety retailers can significantly enhance their stock management by taking advantage of technologies like RFID. This technology allows retailers to automate inventory processes and gain real-time visibility into their stock across all locations.

By tagging individual items, boxes, and pallets with RFID tags, variety retailers can count, validate, and track their inventory effortlessly. Unlike manual stock counts, which are time-consuming and prone to errors, RFID enables quick and accurate scanning of all items without needing to handle them individually. Shipments can be validated quickly and seamlessly, ensuring there are no discrepancies between records and actual inventory.

This technology helps retailers prevent overstocking and understocking by providing a clear and accurate view of inventory levels. It also optimizes distribution and allocation, ensuring products are available where they are most needed. Furthermore, labor costs associated with manual stocktakes and shipment processing can be significantly reduced, freeing up staff for other critical tasks.

The benefits of RFID extend beyond inventory accuracy. With streamlined operations, variety retailers can improve the customer experience by ensuring that the right products are always available when customers want them. This supports the implementation of seamless omnichannel strategies, such as click-and-collect or ship-from-store models. Additionally, the increased efficiency translates to higher sales and reduced operational stress, all while saving time and effort through advanced technology.

By implementing RFID, variety retailers can transform their inventory management processes, ensuring they remain competitive the ever-changing retail environment.

Achieving stock accuracy in variety retail is no small feat, given the fast inventory turnover and diverse product range. However, with the right tools and strategies—like leveraging RFID technology—retailers can overcome these challenges, improving operations, and delivering a better customer experience. By keeping track of inventory in real time, minimizing errors, and optimizing distribution, variety stores can not only meet customer expectations but also stay ahead in the competitive business.

Investing in effective stock management isn’t just about solving immediate challenges—it’s about building a foundation for long-term success.