Is retail dead?

Is retail dead?How technology is transforming the shopping experience and offering retailers new ways to interact with their customers. How technology is transforming the shopping experience and offering retailers new ways to interact with customersContents

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Is retail dead?

How technology is transforming the shopping experience and offering retailers new ways to interact with their customers

Recently, I was asked if the physical retail experience will disappear in the future and be taken over by the online experience. Taking some time to think about this, weighing up all the evidence for and against both physical and digital retail experiences, there are several things that need to be taken into consideration.

Since 1979, when Michael Aldrich first invented online shopping using videotex, some would say the writing has been on the wall for physical shopping. Momentum started to really gather pace in the mid 90’s, with the launch of Amazon and the like, but still only accounted for about 6% of all retail sales.

COVID-19 has a lot to answer for. The global pandemic kept shoppers at home and drove us to having to accept the online retail experience, which will equate to 22% of all purchases by 2023.

But is the online digital experience the same as going to the physical shop?

22% of all purchases will be made online by 2023, compared to about 6% in the mid-nineties

Although there’s no doubt that online retail is here to stay, the physical stores are fighting back. Nothing can replace the experience of a day out shopping and interacting with potential purchases, especially when it comes to building brand loyalty. Shopping must be more than just purchasing - it is all about the whole experience, and how it makes you feel.

70% of shoppers are craving a return to the in-store experience, and so retailers must embrace the impending ‘retail reset’ and prepare to deliver a better immersive experience, ensuring their customers have good reason to keep coming back, time and time again.

Through the intelligent implementation of new technology, retailers can create true ‘smart stores’, delivering an enhanced in-store experience for customers, staff, and investors alike. Here are a few good examples of how this can be achieved, and how it will change the way in which we shop:

Digital cameras
create actionable data streams

Consider a coffee shop. The purchase habits of a young professional versus an elderly person with their grandchildren
are very different. Imagine if you could capture this information
as they walk through the door and adapt your digital
marketing accordingly…

Being able to identify different personas and their associated purchasing habits can open the door to numerous marketing and sales opportunities. A digital camera can identify the difference between a young or old, male or female customer, as well as many other traits that influence shopping habits. Take that data stream, combine it with the right AI, and transform your digital marketing content.

Customer Wi-Fi
access for effortless browsing

Seamless, user-friendly Wi-Fi services that can unleash the power of wayfinding and geolocation, augmented and virtual reality (AR/VR), digital endless aisles, wireless self-checkout, and advanced stock replenishment, will help streamline the shopping experience. Imagine, if you cannot find an item that you are looking for, being able to ask your phone if it is currently in stock and, if so, where it is located.

The Internet of Things (IoT)
drives efficiency

The interconnection of physical devices shows no signs of slowing down and offers retailers a range of advantages when it comes efficiency of labour, stock control, and pricing, providing a holistic view of the entire ecosystem through a single pane of glass, ensuring routine processes such as restocking tasks can be automated where possible, reducing time spent on administration. This, in turn, will open the door to data-driven decision making, utilising the insights generated to identify new opportunities for service improvement.

These advantages can then be passed on to customers, helping them enjoy a more streamlined shopping experience. For example, shoppers can be directed to the items they want, for the best possible price, by connecting to the shop’s technology ecosystem via their phones, with helpful suggestions provided, based on their purchase history.

Contactless solutions
help staff deliver their best

This includes digital mirrors in fitting rooms,
virtual shopper assistants, click-and-collect, and contactless payment. Collectively, these technologies will allow retailers to redeploy labour from mundane, repetitive activities to customer-facing roles. This will drive better engagement and brand loyalty with customers and staff alike, which - in turn -increases staff retention.

Automated
theft reduction

In 2020, retail theft was up by nearly 20% from 2019, but technology can offer a solution. Replacing legacy CCTV systems with smart camera technology allows retailers to reduce theft through automated notifications and advanced behaviour detection, coupled with other forms of artificial intelligence and machine-learning tools. These systems can also detect and generate actionable data streams at the point of sale, cross reference with the ERP/POS system and confirm or red flag the accuracy of the transaction.

Bespoke
digital coupons

With the cost of living increasing on a daily basis, digital
coupons will remain a staple of the shopping experience. Digital coupons are rapidly outpacing the traditional coupons and are easier to target towards specific groups of people, utilising the personas described above, providing shoppers with bargains tailored to their purchase histories and preferences.

Data-driven
decision-making

Online retailers know everything they need to know about their customers and use that data in targeted marketing campaigns, as well as predicting buying behaviours. But how much do physical retailers really know about their customers? Currently, not a lot… But through the data streams generated on-site, this is changing, allowing for tailored customer experiences and more informed decision-making at all levels.

This is just scratching the surface of the different ways in which leading-edge technology can enhance the customer and employee experiences. With all these potential benefits, retailers simply cannot afford not to consider the impact it could have on their businesses’ viability. After all, no retailer wants to go the way of Blockbuster!

Conclusion

While the cries that ‘retail is dead’ will likely persist, the sector has repeatedly demonstrated its resilience in the face of an evolving digital landscape, a global pandemic, and customers’ changing shopping habits. While the high street has certainly changed forever, the creative implementation of new technology is ensuring that, far from approaching its end, it is getting ready to enter the next phase in its existence, where the convenience and efficiency of online shopping meets the tactile experience and bespoke touches that only an in-person visit can provide. However, to bring this about, equal measures of innovation and investment must be applied to the five pillars that form the foundation of a successful strategy:

Customer experience and satisfaction
Management data output, analytics, AI and IoT
Cybersecurity
Ecosystem partners
Workplace innovation and employee experience

Get the balance right, and ‘brick and mortar’ retailers can look forward to a bright and prosperous future.