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Retailers investing in tech to improve brick and mortar proves to be a win

Wednesday, Jun 24, 2020

Technology has drastically transformed throughout the years, creating waves in the retail industry. Some retailers aren’t quite sure how to adapt, but for others who are willing to experiment and invest in tech, it pays off to have an omnichannel approach to meet constantly changing consumer demands.

With automated technologies becoming more prevalent, the demand for an elevated shopping experiences rises. When retailers take the time to bring new technologies into brick-and-mortar stores, they can then enhance their in-store experience and allow consumers to experiment with these new capabilities first-hand.

A study from CB Insights in 2019 found that investment in in-store tech spiked nearly 60% to $3.7 billion. Fast-growing retailers and investors understand the potential value of in-store technology, and it’s going to continue to grow and evolve. Pure-play online-only retailers, such as Casper, Peloton and Warby Parker operated about 1,700 stores in the US at the end of last year. JLL Research forecasts that these digitally-native brands will open another 850 physical stores by 2023.

Right now, consumers are more receptive to technology than they have ever been before. But, the rise of online-only capabilities isn’t enough for growing demands of shoppers. Brick-and-mortar stores will always be at the forefront of retail, when combined with other channels they become that much more powerful. Almost 70% of US consumers use some sort of buy online, pick up in-store shopping method, and 85% of those shoppers say they’ve completed additional in-store purchases while picking up an online order.

When incorporating tech into brick-and-mortar stores, consumers are looking for a quick and seamless shopping experience. Retailers will need to use the powerful capabilities of technology to track execution and make sure it fits in flawlessly with the in-store experience.

“In-store technology, such as navigation apps and Bluetooth-enabled shelf labels, can transform in-store experiences, helping shoppers find what they need in guided, useful and entertaining ways. These technologies can draw shoppers to products, convey real-time information, provide reviews and promotions, all based on shopper preferences and habits, and combine function with fun to entice purchases,” said Ailsa Wingfield, Executive Director, Nielsen Global Intelligence.

If used correctly, technology can completely enhance the in-store experience for consumers. To continue to revolutionize the industry, retailers will need to explore all tech options in order to place a renewed focus on the in-store experience and shape it for the better.

Source: How Retailers are Using Tech – Total Retail, In-Store Tech Boosts Brick and Mortar – Nielson, Majority of Consumers use BOPIS – BusinessWire
Photo Credit: The Role of Retail Technology – Samsung Insights

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Article Topics: Editorial | Insights
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