Technological Advancements in the Retail Industry

Retail Business Review | Tuesday, October 18, 2022

Physical channels are improved by digital technology, while digital channels turn more human.

FREMONT, CA: A shopping journey in which physical experiences and digital technologies intertwine to enhance one another; this phenomenon is known as phygital. Physical channels are improved by digital technology, while digital channels turn more human. The net outcome is a more personalized and engaging experience.

Here are five technological advancements in the retail industry:

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1. Facial recognition

Identifying customers by facial recognition method provides your staff visibility into the types of products customers might buy and how much they are likely to spend – so they can roll out the VIP treatment for those high-value shoppers. 

Facial recognition technology can even support your sales staff in better responding to customers' needs, deciphering any modifications in your customers' emotions, and then notifying them so they can attend to distressed or confused shoppers immediately.

Still, Many stores don't have the luxury of recognizing every face that comes through the door.

Scanning thousands of referral points across a person's face to identify their unique 'face-print.' Shoppers could sign up for the scheme and use their smartphone to perform the facial scan or visit a dedicated booth in-store. Whatever the mechanism, its active retailers retain trust by placing shoppers in control of the experience.

2. Autonomous delivery robots and store assistants

Robotics has already changed Distribution Center (DC) operations, with retail giant Amazon reportedly utilizing more than 100,000 robots to drive stock around warehouses and group items for order completion, leading to a 20 % drop in operating costs. In addition, technological advancements in the retail industry are also starting to robotize last-mile delivery.

3. Cashierless stores

The concept of queue-busting cashier-less stores has been provided extra impetus by social distancing measures imposed on the back of COVID-19. For example, one survey examining shifts in shopping habits due to the pandemic found that 87 % of customers would probably choose stores with contactless or self-checkout options.

The capacity for customers to simply leave the store with their items being scanned mechanically and the total debited from their account will probably soon become widespread.

Taking this approach further, it's possible to develop an almost completely touch-free shopping system. With COVID-19 concerns possible to stick around for a while, we may see customers scanning barcodes and QR codes to pay for products and receive information about those products right into their smartphones, too. This will reduce direct product handling and address sustainability and accountability concerns by being more transparent about production methods.

4. Augmented Shopping

The flagship technology for creating a phygital future may come in AR/VR. And it feels like customers are on board with it. As per one report, nearly two-thirds (61 %) of U.S adults surveyed said augmented reality has influenced where they shop.

COVID-19 measures have played a key role in increasing the demand for AR systems, enabling customers to adopt a "try-before-you-buy" method in absentia, and supporting replicating, and even building on, the in-store experience online.

AR promises to drastically change the in-store experience, too. In fashion retail, smart mirrors will bring earlier unthinkable levels of interactivity. Customers won't need to get undressed to try out a new wardrobe. Instead, virtual changing rooms allow them to superimpose items and outfits and gather friends' opinions by sharing images on social media.

5. Voice Commerce

Voice assistant technology has exploded in renown and has even begun to break free of smartphones and spread into other devices. One survey showed that 60 million people have at least one smart speaker home. For many, product research, price comparison, and even product purchases are just a few utterances away. 

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