With Gartner outgoing With global IT spending set to reach $4.5 billion by the end of this year, it is clear that digital transformation has become a priority for companies across various industries, including retail. However, a common misconception is that digital transformation begins and ends with the shift to e-commerce in retail. While adding a virtual component to business models has helped retailers stay afloat in an age where in-person shopping was not secure or possible, retailers still face daunting and seemingly insurmountable challenges.
Fortunately, innovative digital technologies can help retailers overcome these obstacles and eradicate inefficiencies by optimizing staffing and operations, employee and customer experiences, driving ROI and alleviating supply chain discrepancies. . However, not all innovative retail solutions are created equal when it comes to modernizing retail business models, and many retailers embrace flashy new technologies without considering the value they add to customers and staff.
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So what solutions effectively walk the line between innovative and effective? In a crowded retail tech market, three solutions are emerging as frontrunners: smart inventory management, AR-powered shopping, and smart checkout.
Smart inventory management
Eradicating supply chain gaps has long been a problem for retailers. Fortunately, with many companies turning to smart shelvesor unique solutions that combine indoor positioning technologies and AI to detect changes in an item’s position and recommend product replacements, the digital shopping and replenishment experience is reinvented.
The implementation of smart racks streamlines supply chain management and offers a more refined view of the current state of the market. Retailers can track which products sell out quickly, which ones stay on the shelf for weeks, and even how long shoppers pick up items before purchasing. Therefore, these solutions streamline inventory operations and asset monitoring and help retailers gain insight into customer behavior and forecast trends.
AR powered shopping
As brands digitally transform their businesses to support retail operations, consumers reap the benefits too, as emerging technologies like augmented reality improve in-store navigation, making finding and buying the right shirt, cologne or pair of perfect sneakers faster and easier.
The convenience of accessing AR in the palm of your hand via mobile apps adds an element of gamification to the in-store shopping experience – increasing fun, enhancing the customer experience, and inspiring more in-person purchases. While the world continues to move quickly, convenience must be at the core of every omnichannel retail strategy. Adding an AR element to in-store operations can improve brand reputation with consumers and increase customer retention.
Implementing AR-powered shopping features also eases the workload on employees. Like smart shelves, AR minimizes time spent on menial tasks like tracking inventory, allowing employees to spend their time on more critical retail functions like building customer relationships and investing in the ever-critical human element of the in-store experience.
smart payment
Another way that technology, specifically AI, has digitally transformed the retail space is through smart checkout. These emerging technology trends allow retailers to serve customers with fewer hands on deck.
In recent years, many companies have found it difficult to navigate an increasingly unusual job market. Unfortunately, the current labor shortage has devastated brick-and-mortar businesses more than any other business sector. However, trendy technologies like QR codes and facial and palm recognition are helping to address these issues in ways we never expected.
Example? from amazon just get out transforms retail environments by creating innovative shopping experiences powered by computer vision, sensor fusion, and deep learning. Smart payment technologies like Just Walk Out improve personal safety and reduce the time it takes to shop for items, benefiting both retail workers and customers.
conclusion
As retailers around the world adjust their business models for the digital age, technology is finally a top priority in an industry historically characterized as a digital laggard. However, retail executives need to understand that digital transformation extends far beyond the transition to e-commerce. They must also assess what types of innovation will transform the in-store shopping experience for customers.
Digital retail and virtual shopping will continue to develop and improve as technology platforms advance. Reassessing your company’s digital strategy and implementing omnichannel platforms have become the solution to staying relevant in today’s retail industry. By adopting these three key technologies, retailers are well-equipped with a sure path to successful digital transformation.
— Kevin McCaffrey, CEO and Founder, Tr3Dent.
