It’s no secret that retail businesses are going through a pivotal phase; an existential crisis triggered by skyrocketing rates of digital adoption and the burgeoning presence of biggies like Amazon and others. The pandemic with its perennial need to follow social distancing and stay-at-home mandates has strengthened the demand for eCommerce. Just about one-third of U.S. consumers were willing to enter shopping malls again in April 2021, while 25-48% of European consumers from different countries were keen on avoiding brick-and-mortar stores even in the beginning of 2021.
The decline in the demand and popularity of physical stores has had a crippling effect on several businesses. Some declared bankruptcy while others closed down a few units to shrink their business. The list of store closings is rather long – a record 12,200 stores in the U.S. alone in 2020.
At a time when profits are becoming elusive and footfall remains uncertain, the retail sector, especially boutiques and smaller businesses, are up for a major upheaval. The decline is evident, but it’s definitely not the end for the traditional brick-and-mortar store experience we’ve so thoroughly enjoyed all our life. As the legendary Mark Twain would have said, “the reports of the death of brick-and-mortar stores are greatly exaggerated.”
A lot can be done to shift the tide in their favor. The onus is on local and boutique retailers to ensure that the gratification continues albeit online for their customers. Luckily, it’s not so difficult if you identify the core areas that draw customers to the in-store experience and leverage the spectrum of retail IT solutions accordingly.
Averting the Retail Apocalypse
A bit of a tweak in your approach and digital adoption, particularly by leveraging retail IT solutions, can put you on the road to retail recovery. See how Nordstrom revamped its business model to serve its customers. Be it a quick fix for a leather jacket or getting pants hemmed in an hour, the sprawling flagship store offers everything from style tips to personal guidance for free to its customers. As Sonia Lapinsky, managing director at Alix Partners, puts it, “Nordstrom is providing a reason for the customer to walk in the door.”
Relevance is the key here, and all the resources, be it time, money, or efforts, should be used to elevate the customer experience. Ultimately, it’s all about the relationships you build with your customers, especially when 56% of customers stay loyal to brands that ‘get them.’ Retailers can achieve this by integrating retail IT solutions that enhance personalization and engagement.
Taking a cue from its biggest competitor Amazon for the digital maturity it has achieved in such a short time, Walmart too has transitioned to eCommerce in a big way. It has witnessed a 97 percent surge in eCommerce sales with total revenues increasing by 5.6 percent to $137.7 billion. With the help of AI and retail IT solutions, Walmart is helping buyers make smarter substitutions for out-of-stock products by suggesting the next available items. Their choices are analyzed and fed into learning algorithms to make more accurate recommendations in the future.
With artificial intelligence (AI) at the heart of all their initiatives, both brands are taking the eCommerce world by storm while underlining the potential of retail IT solutions.
Retail with a Digital Edge
There are 7 areas of retail that are of paramount importance to ensure the most satisfactory shopping experience for buyers. These include:
- Swift digital payments – As consumer faith in online transactions has grown, contactless, digital payments have become the norm.
- Smooth navigation – With better search algorithms and smarter devices, the shopping experience is expected to be omnichannel.
- Centralized inventory – Digital businesses enjoy greater economies of scale and improved turnover due to centralized inventory with smarter technologies and robotics at the helm, powered by robust retail IT solutions.
- Ease & convenience – The craving for something and the convenience to have it right away can translate into greater satisfaction.
- Product experience – Through touch and feel, consumers want to physically experience the things they buy.
- Immersive exploration – Consumers love to be involved in brand journeys and eagerly participate in activities that involve entertainment and engagement.
- Personal advice – It is always heartening to know you are understood, and expert advice is always welcome.
Leveraging the right retail IT solutions to excel in these areas can help you regain strategic momentum and offer a uniquely differentiating customer experience.
Here’s How You Can Win the Digital Game
- Go BOPUS (BOPIS)
A lot of retailers are going the ‘buy online, pick up in store’ way to blend the speed and convenience of eCommerce with the in-store product experience. Nordstrom Local is a great example of a brand leveraging retail IT solutions well to offer pickups and returns along with express alterations and a whole lot of services to ensure customer satisfaction. - Prioritize Personalization
Thanks to AI powered retail IT solutions, retailers now have the data and intelligence necessary to understand their customers’ shopping habits and choices. You can personalize marketing content, customize newsletters, and entice them with relevant ads on social media. - Provide 24/7 Customer Care with Conversational AI
Brands are increasingly leveraging retail IT solutions like chatbots to offer personalized assistance and customer service round the clock. - Bolster the Supply Chain
AI-powered inventory optimization helps businesses increase accuracy and handle sudden shifts in demand. Walmart and Amazon use dynamic pricing based on the data they collect, further showcasing the power of advanced retail IT solutions. - Drive an Omnichannel Experience
To facilitate sustained customer satisfaction both online and offline, you need retail IT solutions that enable omnichannel experiences. Whether customers shop via mobile device, laptop, or a physical store, integration across distribution, promotion, and communication channels is essential. - Evaluate Virtual Fitting Technology
Virtual try-on and fitting rooms enabled using Augmented Reality and Virtual Reality are catching on big time. Retail IT solutions offer brands like Macy’s and Adidas the ability to provide virtual fitting experiences, offering both comfort and confidence to buyers.
Explore Trigent’s Retail IT Solutions
In Closing
Businesses need to leverage AI powered retail IT solutions that will enable the following:
- Ensure convergence across channels and touchpoints as boundaries between the physical and digital worlds blur.
- Customize the delivery format based on changing shopper behaviors through personalization.
- Collaborate instead of competing with other suppliers and retailers to enhance customer value.
- Improve the value proposition through interactions and communication in real time.
- Facilitate self-learning through AI-enabled data to enhance customer satisfaction.
Create a seamless customer experience with Trigent
As you gear up to deliver unique shopping journeys, we can help you with our broad range of retail IT solutions to build a technology stack that’s replete with features and functionality. With an array of pre-built as well as custom solutions for diverse retail use cases, we empower you to offer personalization and delightful digital experiences at scale.
We’d be happy to be your trusted technology partner on your digital transformation journey.
Call us today to book a business consultation.
References
1. https://www.statista.com/topics/6239/coronavirus-impact-on-the-retail-industry-worldwide/
2. https://fortune.com/2021/01/07/record-store-closings-bankruptcy-2020/
3. https://www.barrons.com/news/walmart-profits-jump-80-to-6-5-bn-on-strong-e-commerce-sales-01597749906
4. https://research.aimultiple.com/chatbot-stats/
