Services

Future of Retail

The future of retail isn’t what you think.

Over the next several years, some very big forces will hit the retail industry.

From new payment types to variable store footprints, they’ll change how and where goods are stored and sold. Data analytics tools like predictive modelling, and ‘always on’ digital technology will make it possible for consumers to interact with retailers in new ways (and vice versa). More pertinently, here are a few key trends in etailing:

Clientele

Retailers will use technology to help store associates recognise and develop a relationship with each shopper.

Augmented reality

Sophisticated digital displays allow customers to access the full range of sizes, colours, and features for any product using augmented reality.

Social Marketing

Expectations are moving quickly, and retailers will be expected to lead, not follow. Social media will be a favourite destination to spot trends – present and future.

Staff Utilisation

The role of a store associate is changing. This has significant implications for training techniques, competency models for hiring, and even compensation.

Checkout Lanes

The checkout process is changing with the evolution of payment preferences and the rise of cash alternatives. For some retailers, checkout lanes could actually disappear. Mobile technology will enable any store associate to take payment to complete a sale, and it may expand the use of self-checkout tools.

Our perspective

E-commerce will continue to alter the landscape of the retail industry as shoppers will go online with the biggest retail stores in their pocket to buy clothes, merchandise, groceries and services, threatening the viability of physical retail spaces.

The big retail chains with hyper-stores will fight tooth and nail with online retail by pampering shoppers with more consultative services and leading edge technologies like facial recognition, virtual reality with virtual taste, scent and touch becoming an integrated part of the stores.
The ultimate beneficiary will be the shopper who will have abundance of information, perfect price transparency, plethora of special deals and less than 24 hrs delivery times.

The number of employees in retail will be much lesser than one finds today. Cashdesks manned by humans will be the first casualty as shoppers will route their payments through mobile wallets or other technologies. Sales associates, if they remain, will have a much wider skill set. Mere product knowledge won’t be good enough. They shall be able to give higher value , consultative services by having more information about customers’ interests and purchase histories (all aided by technology). Even in mass-market stores, tomorrow’s sales associates will need to be researchers and diplomats, adept at using technology and making connections with customers.

The smaller retailers will have to be uniquely competitive offering niche product to retain any market share and if they do , they will have to outcompete others in service, logistics and technology by providing enhanced shopping experience and value.

Gazing through the crystal ball,

Thus, the retail industry will witness the following transformations:

  1. The army of retail executives will go but a fraction of them will remain and gain at the cost of those exiting.
  2. Each store may be manned singlehandedly by one person with multidisciplinary skills. It’ll give a new lease of life to retailers.
  3. Retailers can use technologies like augmented reality to reduce their inventory too and save cost while increasing service to each prospective customer

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