Retail thought leadership
Retail grocery technology and shopper behavior took a five-year leap into the future due to COVID-19 with the demand for no and low-touch services jumping 100+ percent overnight. But the change is just beginning.
We see retailers investing heavily in no-touch technology, such as cashier-less checkouts, apps, website enhancements and additional virtual services. They’re testing add-to-cart in-app scanners, touchless payments, and driverless delivery.
The size of the dark store—the backend operations where retailers manage their delivery and curbside pickup orders—is growing rapidly as even more floorspace is shifting from traditional retail toward fulfillment centers.
Here’s a look at what else is coming:
Wi-Fi 6 and 5G
Imagine a future where every device you own, including your car, fridge, computer, speakers, microwave, thermostat, and mini blinds, is connected and knows when you need milk.
Wi-Fi 6, 5G, and the Internet of Things are coming to a world near you. Soon, we’ll have the bandwidth to make that final shift from the real world to the virtual world. The increased mobile data transfer rates alone will be like going from dial-up internet to fiberoptic—lifechanging.
This enhanced technology will enable more reliable virtual reality, 3D video, and augmented reality, which will further enhance the shopping experience and attract more users. Shoppers will begin to let their devices decide when to replenish the milk while they do other things.
The Amazon Effect
First, Amazon created Prime memberships and proved consumers not only wanted convenience but were willing to pay for it. Then, they reduced shipping from two days to two hours, and shoppers wanted that so badly they were willing to pay even more. Other retailers are now following suit.
Many believe connected devices and all-senses search will be critical in the next wave of shopping, and Amazon is poised to lead the way.
Recently they’ve ventured into brick and mortar grocerywithAmazon Go – where, through an app and many cameras – you can take merchandise out of the store without ever interacting with another person.
Digitizing the Supply Chain
Streamlined supply chain inventory management is about to get digitized, too. We’re on the verge of behavior-based real-time pricing adjustment that will make shopping even more personalized, relevant, and convenient.
Imagine a system that uses machine learning and artificial intelligence to manage dynamic pricing, which is adjusted in real time to changing consumer behavior while considering inventory and profit requirements and communicating with suppliers.
5G and Wi-Fi 6 upgrades, paired with connected shelving, will make it possible.
Why Does it Matter to the Shopper?
Shoppers want personalization, and data shows that targeting communications nets better returns.
Imagine if you could talk directly to a shopper while they’re standing at the shelf making a purchase decision.
5G will give us device tracking so precise that we’ll know when a shopper is at a specific shelf in the store. Using digital shelves and signage, machine learning and artificial intelligence, we’ll know their purchase preferences and be able to immediately serve a unique message: “Sally, Awesome Vitamins are $1 off for you today.”
Shopping is Social
Pinterest, Facebook, Instagram … shopping is being built into social media, with all of the major players now partnering with retailers to add their products to virtual shops directly on the platform.
You can start to see a future where you can add products to your carts while scrolling through different social media platforms as you see and engage with them. On some platforms, you can already watch a video of a recipe demonstration and add every product to your Instacart.
Soon, shoppers may not even have to go to one retail website to shop; they’ll be able to add products to their “cart” whenever and wherever.
Retail Isn’t a Place They Have to go, so Make it a Place They Want to go
While shoppers love the speed and convenience of online shopping, they also want to slow down and enjoy retailtainment at other times.
The fashion industry has been experimenting with inventory-free stores, where customers can experience products rather than store them. These stores ship purchases to your home, offering a couture experience at an off-the-rack price.
Consumers are putting more importance on mindfulness and mentally slowing down, too, and savvy retailers like Lululemon are experimenting with ideas like “Zen Pods” to give them space to relax. There also happens to be some suitable merchandise for sale nearby.
The Future Store
Envision stores as the places shoppers go to explore, taste the newest coffee, talk to brand hosts, feel the merchandise, participate in wine tastings, and have it all shipped to their homes.
Or maybe it’s like this virtual reality from Alibaba where we use VR goggles and never leave home. We could virtually walk down store aisles, view and learn about merchandise, chat staff questions, and discover related products just like being in a real store, but … not.
One thing is sure: The retail future is upon us; what do you think it holds?