The New Retail Reality

It’s not news that traditional, brick-and-mortar retail experience has been disrupted by technology and new consumer habits. In developed countries, companies like Amazon and Netflix have changed the way consumers interact with retailers and their favourite brands. The increase of online shopping, due to better pricing, variety or convenience, has drastically changed the retail landscape. Despite of the increase of on-line shopping, consumers still value the touch-and-feel experience as well as the immediate satisfaction of taking items home with them. Adapting to this new reality and finding the right balance are paramount and on the agenda of every Management Board.

A new breed of consumers is demanding faster, personalised and real-time, accurate information. ‘Experience’ is a key word. Although challenging, this new competitive reality also provides opportunities to retailers, and some are moving from disrupted to disruptor. The increase of usage of technology in the shops is no longer an option. It has become a necessity for survival.

According to a survey from SessionM, more than 90% of consumers use their smartphones while shopping in retail stores, comparing prices, searching for product information or reading reviews. The real-time and accurate information empowers consumers to be better informed than store associates. On the other hand, a survey from Tulip Retail reveals that 70% of consumers rank knowledgeable store associates are ‘important’ or ‘very important’. The same survey reveals that dealing with store associates that use mobile devices to provide product information or availability, proceed with credit card checkout, results in a better shopping experience.

The shopping experience can also be amplified by using available technology: Bluetooth beacons can identify and target individual shoppers with personalised suggestions, coupons or discounts based on their shopping history; smart digital price tags can use dynamic pricing and be more responsive to consumer demand; VR and AR can close the gap by empowering consumers to ‘experience’ items without ever touching them. All of these will also empower better data collection and automation of decision making using artificial intelligence, improving accuracy and response time.

By leveraging the use of smart technology, empowering management to adapt local experience to reflect customers’ needs and demands, and customising the experience, retailers can find the right balance of off-line and on-line interaction, adapting to individuals and their expectations.