Based on our interactions with customers, retailers, industry leaders, partners and inputs from internal industry experts we were to identify some of most popular and powerful retail trends which encompass retail technology, supply chain and customer expectations. What is interesting is that industry leaders with huge retail technology investments have also been responsible for creating many of the retail trends. But other retailers have also been able to enrich their customer experiences by creating innovative customer journeys. Here are the trends which we are seeing in 2022, whose impact will carry into the new year.<\/p>\n\n\n\n
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- Self-service stores<\/li>\n\n\n\n
- Personalization<\/li>\n\n\n\n
- Payment integration<\/li>\n\n\n\n
- Omnicommerce \u2013 be it mobile or social<\/li>\n\n\n\n
- Small format stores<\/li>\n\n\n\n
- Experience economy<\/li>\n\n\n\n
- Supply chain visibility across channel for better customer experience<\/li>\n<\/ol>\n\n\n\n
Self-service stores<\/strong><\/h2>\n\n\n\n
Store self-service is one of the dominant retail industry trends \u2014 and an interesting example of how retail is changing.<\/p>\n\n\n\n
There are now many \u201cAmazon Go\u201d stores where you can grab a product off the shelves and walk out, with the products directly billed to your Amazon account. Of course, most retailers haven\u2019t achieved the same heights in self-service stores.. But they\u2019re still impacted by the instant gratification culture. Scan and go also helps address safety issues post pandemic.<\/p>\n\n\n\n
In grocery stores, there are more self-scanning machines<\/a>, while other retailers have kiosks<\/a>.<\/strong> In eCommerce, the impact of this trend is that it would be good if there were lockers for customers to pick up items ordered online, scan and leave rather than just curbside pick-up or through check out.<\/p>\n\n\n\n
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Figure: Self-service kiosk at retail store (Source: SkillNet\u2019s client<\/strong>)<\/figcaption><\/figure>\n\n\n\n Naturally, there are challenges; not everyone has the same infrastructure or investments as Amazon. To keep up with the self-service culture, retailers need increased transparency and better technology. Retailers need to be able to track logistics and shipping on a granular level \u2014 and provide tracking and shipping information, so customers never feel like they are left waiting.<\/p>\n\n\n\n
Retailers can support customers desire for self-service by partnering with technology vendors to create innovative customer journeys<\/a>.<\/p>\n\n\n\n
Personalization: Getting up close and personal with the customer<\/strong><\/h2>\n\n\n\n
Interactive retail experiences are bridging the gap between the online and offline parts of the store, melding with the omnichannel experience. Customers now expect to get relevant, personalized communications. Additionally, conversational commerce through AI-driven chat bots is becoming a way to engage customers and garner leads.<\/p>\n\n\n\n
To personalize the customer experience, data must first be gathered and then analyzed. This can be done through loyalty programs<\/a>, customer surveys, return data, and purchase behavior. With this data, retailers can segment their customers and figure out what each segment wants. Additionally, it becomes critical to have the technology that can support personalized customer experiences<\/a> and trigger interactions.<\/p>\n\n\n\n
Personalization is becoming harder because less information is accessible through third-party data wells. You need to have the technology in place to collect first-party data. If a customer browses through a mobile device and later comes into the store, you should be able to connect them in a meaningful fashion. If not, it is something which should be addressed at the earliest.<\/p>\n\n\n\n
Payment integration: Easy buy, easy pay<\/strong><\/h2>\n\n\n\n
![\"\"](\"https:\/\/www.skillnetinc.com\/wp-content\/uploads\/2022\/09\/skil6.jpg\")
Retail trends \u2013 payment options<\/figcaption><\/figure>\n\n\n\n Frictionless payment, contactless payment, and additional payment options \u2014 it\u2019s all essential. The last time you purchased anything (from groceries to car parts), you might have noticed a prompt to pay in installments through Affirm, AfterPay, Klarna, or a similar service.<\/p>\n\n\n\n
Payment integration has become more important than ever to streamline the customer experience. Customers want to pay with their preferred method, whether through a mobile wallet like Apple Pay or Google Pay or with a store-branded credit card.<\/p>\n\n\n\n
Facilitating payments means facilitating sales<\/a>. If your customers find that it\u2019s difficult to pay for a product or a service, they may simply move on to a retailer that is easier to use. Again working with a technology vendor who can help address such issues can go a long way in supporting customers.<\/p>\n\n\n\n
Omnicommerce: Complete mobility from channel to channel<\/strong><\/h2>\n\n\n\n
Social commerce (social networks), mCommerce (mobile commerce), traditional eCommerce (online portals), conversational commerce and Metaverse commerce (virtual reality) \u2014 they all build into and connect to the modern omnichannel experience<\/a>.<\/p>\n\n\n\n
An omnichannel experience<\/a> is now more than just being able to buy however you want; it\u2019s about having a unified experience throughout the multitude of commerce options. Buy online, pickup in-store is one of the examples. Follow a brand on social media and make purchases on Instagram. Receive personalized recommendations for products based on past behavior. According to Jun 2022 PWC study<\/a> \u2013 \u201cAmong consumers who use virtual reality, a surprising 32% reported using it to buy physical products as a result of testing\/browsing stores via VR at the same time 19% reported purchasing luxury goods\u201d.<\/p>\n\n\n\n
Small format stores<\/strong><\/h2>\n\n\n\n
What is the future of retail stores? Small!<\/p>\n\n\n\n
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Retail trends \u2013 small format stores<\/figcaption><\/figure>\n\n\n\n In the last few years, there\u2019s been a renewed interest in small format stores. Retailers like Best Buy<\/a>, Macys, Bloomingdale\u2019s (Bloomie\u2019s), Target and Walmart are all experimenting with smaller stores that are easier to build and staff and require less inventory. Even inside Target, other stores like Ulta are emerging, creating a mall-like ecosystem that can still thrive.<\/p>\n\n\n\n
What\u2019s driving this trend? In short, it\u2019s about being closer to the customer. Smaller stores mean retailers can open more locations without too much overhead. This creates a top-of-mind presence for the customer. Being closer to the customer also supports BOPIS.<\/p>\n\n\n\n
But with more locations also comes greater levels of complexity. Without the right technology, managing these prolific small format stores can become tremendously difficult. With the right technology, however, retail stores and eCommerce both become exceptionally scalable.<\/p>\n\n\n\n
Experience economy: the customer experience<\/strong><\/h2>\n\n\n\n
Omnichannel tools are creating more meaningful shopping experiences. Customer experience (CX) is becoming essential to developing a strong customer journey.<\/p>\n\n\n\n
CX is the combination of all the interactions<\/a> a customer has with a company. This can include everything from customer service to social media to in-store experiences<\/a>. This means that retailers need to focus on creating positive experiences at every touch point.<\/p>\n\n\n\n
Technology is playing a big role in the customer experience. Augmented reality (AR), virtual reality (VR), and AI are all being used to create more immersive experiences. Retailers are also using beacons and other location-based technologies to send personalized messages to shoppers while they\u2019re in the store.<\/p>\n\n\n\n
The customer experience has to be a positive one, though \u2014 not just one that \u201cwows.\u201d Every interaction that a customer has with a company should be tracked in terms of satisfaction, and companies should always strive to improve the experience the customer had. Customers are likely to come back to a store \/ retailer that provides a good experience even if they are neutral about the product. Today\u2019s customer is all about connection.<\/p>\n\n\n\n
Supply chain management across channels for omnichannel retail<\/strong><\/h2>\n\n\n\n
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Retail trends \u2013 omnichannel retail with cross channel supply chain management<\/figcaption><\/figure>\n\n\n\n With supply chain issues continuing, same-day delivery gives retailers a clear advantage. Supply chain transparency is increasingly important. Customers expect their products the next day. Sometimes, they expect it the same day.<\/p>\n\n\n\n
With artificial intelligence\/machine learning, supply chains can be fine-tuned. Autonomous delivery and fulfillment packages make achieving effective supply chain management<\/a> easier than ever.<\/p>\n\n\n\n
Supply chain management must be entirely integrated into each supported channel; if not, inventory management <\/a>and logistics will swiftly become a problem.<\/p>\n\n\n\n
Technology is accelerating Retail trends<\/strong><\/h2>\n\n\n\n
Automation is becoming more popular, from testing a product to delivering<\/a> it to the customer. Smarter services through AI deliver better, faster experiences, but companies must have the strategic focus, technology<\/a>, and talent necessary to incorporate these services. Companies are finding themselves using headless tools for utilizing infrastructure through MACH architecture (Microservices, API, Cloud and Headless), and they are focusing on creating seamless customer experiences with omnichannel tools and payment integrations.<\/p>\n\n\n\n
\n\n\nReview your existing technology stack and find economical ways to upgrade your systems.<\/strong><\/h4>\n<\/div>\n\n\n\n
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