Understanding Retail Dynamics
Number of companies in diverse retail segments are upgrading their physical stores into smart stores. Thus shifting the retail dynamics once again. The ongoing momentum towards online shopping, coupled with the flourishing experience economy, is having an impact. Grocery retailers are experiencing robust growth due to an inflationary environment. Purely-online businesses are continually expanding their share of the market.
Digital holds monumental potential and is likely to be critical in determining the fate of the retail sector. Digital transformation is encouraging, with many positive implementations into business models. Now is the time for retail businesses to prioritize technological advancements in order to stay competitive.
In the near-future, retailers are going to be increasingly reliant on AI. Big Data, machine learning and AI-powered assistants which once were only leveraged by larger organizations, can now be implemented. AI-powered retail assistants can give you personalized advice based on your point of sale data.
A personalized voice search strategy could also be hugely beneficial for the SME market. This may allow brick and mortar properties to optimise their listings for voice search. Ensuring that they appear when nearby customers search for their shop or products.
Retailers are utilising AR technologies to close the gap between the physical and digital. With the AR marketplace expected to reach £105 billion by 2021, smaller retail business are following suit. The process of paying for products remains a crucial component of brick and mortar retail. Emerging payment processes, including mobile payments and “buy now, pay later” are likely to grow in popularity. Research indicates that fast-growing businesses are more likely to accept mobile payments, than slower-growth businesses.
As the retail industry moves towards a more integrated omni-channel world, it’s crucial for retailers to work out how to effectively. By measuring the impact on both the physical & digital channels.