Retail
Transformation
A new circular digital retail ecosystem is emerging that meets the demand for more sustainable products and processes as well as delivering seamless, personalized customer experiences whatever the channel used by the consumer at any moment in time, and through the supply chain. The boundaries of “retailer” and “manufacturer” will continue to blur, as companies evolve to meet their customers’ needs.
Personalised Engagement
Data driven & omnichannel
More than 80% of sales occur in a physical location but the focus of personalised engagement has been the customer’s online journey.
Personalisation across both physical and digital channels can achieve a 5 to 15% revenue increase. The challenge is the physical world. 71% of retailers state they lack the ability to deliver seamless customer experiences that integrates ecommerce, in-store retail, and click & collect or virtual consultations. Four of the five retail mobile app features that consumers value the most are those that connect the physical and digital shopping experience [4]. Failure is not an option as one in three consumers have no problem switching brands and half would switch to a different one.
Digital touchpoints, mobile, networking, analytics & AI and security are key enablers.
Online Scale
Seamless & engaging
Online surged to nearly 30% of retail sales in 2020 and while it has reduced slightly as stores reopened it will continue to grow in double digits. Retailers need to continue to scale operations [1] and improve profitability [2,3]
Online marketplaces are also critical. UK respondents state that 41% of their online shopping happens on marketplaces, and in the future, 94% of them expect to use marketplaces at the same rate or more [4].
Social media, ecosystem platforms (e.g. Amazon), delivery options and payment methods are all becoming important. Customer also expect access to a full product range and quick service.
Cloud, analytics & AI, and security are key. Retailers are also starting to explore opportunities in the metaverse.
New Store Role
Omnichannel centre
With sales shifting online and customer expecting a seamless experience, retailers need to right-size and evolve the store estate [1].
Retailers are changing formats (convenience, experience centres, showrooms, micro fulfilment centres, dark stores) as well as deploying digital engagement, flexible skills and automation [2,3,4]. Checkoutless stores are gaining in popularity.
Digital touchpoints, cloud, networking, analytics & AI, and security.
Sustainable Supply Chain
Scaled & resilient
The pandemic exposed weaknesses of over/under supply in global supply chains [1] and delays in last mile fulfilment when the expectation is next day. Global supply chain issues are continuing into 2022.
Retails must build demand-driven end-to-end visible supply chains [2] and profitable last mile fulfilment (delivery, click & collect, micro fulfilment, automated warehouses.).
Sustainability is the next key development with the need to de-carbonise transportation and reduce emissions [3].
Cloud, networking & communications, internet of things, automation, analytics & AI, and security.