The rise of intelligent technologies including artificial intelligence (AI), machine learning (ML), and computer vision (CV) is changing the landscape of retailing—enabling immersive experiences, personalized information, frictionless convenience, and rapid access to consumer preferences. No longer is retail success driven by a matter of well-merchandised brick-and-mortar stores; it now calls for the integration of physical locations with digital experiences delivered over mobile devices known as omnichannel or Retail 2.0.
Smart retail is a term used to describe a suite of smart technologies designed to provide consumers with a bigger, faster, safer and smarter shopping experience. A world in which almost everyone uses a smart device today is a smartphone – this is what made this revolution in retail possible.
According to the Valuates report, the size of the global smart retail market in 2019 is $ 12.410 billion and is projected to reach $ 30.730 billion by the end of 2026, with a CAGR of 13.7% in 2021-2026.This extraordinary growth shows how smart retail will become norm in the near future.
This article introduces a variety of smart retail technologies that will transform shopping:
What is Smart Retail?
Smart retail at its most basic is a way to incorporate various elements of technology into retail practice. With everything digital, from payment methods to product search, to the way we provide feedback, build relationships with brands, and find new products to buy, it makes sense to bring this tech element into the store.
Seamless POS Systems
The latest POS trends in retail are caused by a combination of modern technology and changing customer preferences. Now that you are aware of it, embraced it, and prepared for it, your business has a positive opportunity to grow.
As technology advances, a smart point of sale retail system has become important because it is an effective, safe and inexpensive way to improve business operations. You need to make sure that you choose an updated system that takes these new trends and features into account.
ML for Demand Forecasting
It’s actually quite easy to make an accurate forecast in stable conditions, but we all know very well that retail is dynamic by nature and hundreds of factors continue to influence demand. However, machine learning makes it possible to view the effects in detail by individual branch or implementation channel. It should come as no surprise, therefore, that so many retailers are shifting their technology strategy to machine-based demand forecasting.
The augmented reality market has become so large that it is projected to reach $ 61.4 billion by 2023. AR has permeated (almost) every area including healthcare, gaming, entertainment, retail and digital marketing, education, utilities, etc.
The impact of augmented reality on retail is enormous and has brought many benefits to the industry. From simplifying the process to making shopping easier for people (both online and offline), AR is an entirely different ball game in retail.
AI based Personalization
AI takes inventory of all customer actions: views, taps, cart add-ons, bookings, likes, device settings, and locations to instantly customize the experience. Each action creates a profile around the buyer so AI can customize products and categories to suit their preferences. So buyers keep coming back. According to the “Personalization In Shopping” report, 37% of shoppers who clicked on a personalized recommendation on their first visit returned, compared to just 19% who didn’t click on a personalized recommendation.
No Cashier Stores
The 1,800-square-foot Amazon Go store in Seattle is the epitome of a cashless shop. Customers can only enter the store with a credit card without creating an account or installing an application. Once logged in, they can shop like a normal grocery store while an IoT-based system tracks them in a virtual shopping cart. When shopping is complete, all purchases are paid for automatically after the customer leaves the store.
Voice commerce isn’t just a trend, it’s a complete change in the way we communicate and share things with the world. It also helps brands innovate and launch campaigns, which further improves brand reputation and in turn results in better ROI. It also expands the customer base for a newer audience. Many studies and studies show that optimizing for voice SEO search definitely gives you a competitive edge. Because of this, retailers are already using voice commerce to increase their return on investment and keep up with rapidly evolving technology.
Many retailers are likely to use robots in the future to improve store performance, reduce shop staff workloads, and collect customer data. Robots are great for maintaining social distancing, which makes them a great solution during pandemics.
When all of these things come together in retail, you can literally promote a shopper experience you’ve never had before, and you can expect higher sales, conversions, and ultimately higher returns for your efforts.
Have you been inspired by smart retail? Check out our other blogs on retail.