Retail disruptors move on up by blending old and new
Retail disruptors are more willing to sacrifice a faster growth trajectory to achieve the customer experience shoppers expect, with a mix of human- and data-driven insights for the perfect blending of art and science, according to a new JDA and Retail Systems Research report involving 109 global retailers. “Retail disruptors realise that technology is a strategic enabler and not just a cost to be managed. This will be absolutely critical to success in an evolving and turbulent time for retailers,” says JoAnn Martin, VP, Retail Industry Strategy, JDA.
Against the backdrop of the Amazon Go store opening to the public, the report highlights that bricks and mortar retail is here to stay. 87% of disruptors and 79% of non-disruptors have a bricks and mortar presence and will continue to open stores in the future. Elsewhere, disruptors may be more successful at using technology to improve customer experience than non-disruptors. 25% of the former offer seamless shopping experiences across all channels, while only 13% of the latter do so. 66% of disruptors report that they are now profitable and 28% say they will be in the next 18 months.
The findings also reveal that disruptors are likely to be most satisfied by investments that put them in a position to react to customer needs and market demands. 49% were satisfied with investments in end-to-end supply chain visibility (just 23% of non-disruptors were most satisfied with this), and 38% of disruptors were most satisfied with investments in partner collaboration with vendors (just 29% for non-disruptors).
“So, where do retailers go from here, especially if they want to be disruptors? They need to live and breathe the intersection between products and customers, finding the right balance between human- and data-driven insights. Deploying new technologies quickly – while also changing course if they aren’t working – will also be important to keep speed and agility top priority in order to support their stay ahead in an ever-changing retail landscape,” says Martin.
