New Technologies Bring Extreme Digital Disruption to Retail
“Customers are demanding greater levels of contextualization of products and services. Retail CIOs can leverage intelligence to capture deeper insights, anticipate customer needs and proactively deliver across every touchpoint.” – Gartner, Inc. in Predicts 2020: Consumers Determine Retail Success Well Before the Sale
The retail industry is evolving at an unprecedented rate as the customer experience becomes the number one priority. New technologies have brought about total digital disruption alongside the shift of consumer demands. Traditional retail models aren’t working anymore, and a new retail landscape is manifesting as technology continues to develop.
The new retail operational model is a human-machine hybrid, built upon automation and IT technologies with the intention of supporting human workers in their daily work tasks from customer service to inventory management and warehouse picking – all with the goal of enhancing productivity.
Current challenges in retail:
Though retail is currently undergoing a myriad of disruptive technology-related challenges, AI and data analytics are two solutions that can help ease the difficulties through store optimization and product recommendations, consumer personalization and sales predictions. Through prescriptive analytics, retailers can evaluate AI for better anticipating customer expectations for experiences, services and products tailored to personal preferences and always available.
5 Strategic Planning Assumptions For Retail and What You Need to Know About Them
“2018 Digital Workplace Survey findings show that retailer workers want technology to help reduce mistakes, as well as help with physical work. They would like to leverage AI specifically as an on-demand or predictive assistant.” -Gartner, Inc. in Predicts 2020: Consumers Determine Retail Success Well Before the Sale
By leveraging AI, retailers can forecast demand more accurately and maintain inventory flexibility more effectively. Today, many retailers have already, or plan to implement AI across five merchandising processes: product development and selection, planning, buying, demand forecasting, and allocation and replenishment.
“Estimates indicate that dead inventory (that is, inventory of products no longer part of the desired assortment) is costing the U.S. retail industry as much as $50 billion a year. In 2018, H&M was grappling with £4 billion in excess clothing. Creating faster turnover of active inventory can generate ongoing benefits.”- Gartner, Inc. in Predicts 2020: Consumers Determine Retail Success Well Before the Sale
Concurrently, workers want more flexibility, options and technology enablement. Retailers are going to have to keep up to attract and keep the right talent.
“Being much more adept at predicting labor needs to match customer demand is no longer a nice to have.” – Gartner, Inc. in Predicts 2020: Consumers Determine Retail Success Well Before the Sale
“Consumers around the globe have become more deliberate in rewarding retailers with sustainability initiatives that align with their own.” – Gartner, Inc. in Predicts 2020: Consumers Determine Retail Success Well Before the Sale
“Ever-expanding digital footprints are mapping a path to unprecedented knowledge about consumers that can be used by marketers, retailers and manufacturers to customize offerings. This knowledge is creating an expectation that offerings will always be relevant to the context of customers.”- Gartner, Inc. in Predicts 2020: Consumers Determine Retail Success Well Before the Sale
The retail industry will continue to experience major evolutionary changes as digitalization unfolds. To learn the ins and outs of how retail is expected to change in the next five years, get access to the complete Gartner report. You’ll learn about: