The roll-out of technology in physical retail stores continues to accelerate
There is no doubt that the Covid pandemic has greatly accelerated the development and deployment of retail technology. This has been the case both on and offline.
The pandemic pushed online retailers to streamline their ordering and picking processes. For example, to use chatbot assistants, to leverage e-commerce platforms to quickly scale their supply chain, and to develop virtual showrooms.
Offline many of the physical innovations rolled out in-store were related to keeping customers and staff safe and complying with government guidelines. For example, Lidl´s traffic light entrance system that automatically controlled the number of customers in-store at any given point.
Physical retailers switch back to innovating for profit
Innovation is continuing at a pace. But now the emphasis is different. In particular, in the physical retail space. The emphasis is now on competing successfully with online retailers.
Making the shopping experience better, attracting customers back into stores, and getting back some of the market-share that they lost during the pandemic.
As well as streamlining in store and backroom processes to improve productivity and profitability. That is the tech that this article is all about
Leveraging existing digital display technology
Over the past decade, the use of digital display screens in-store has become far more widespread.
Stores of all sizes and across all industries have gone from using them mainly for their digital and self-serve tills to using them in more innovative ways.
Attracting customers into the store and tailored advertising
Digital sandwich boards are increasingly being used to display in-store offers, as a way of attracting people in.
The fact that what is displayed can be changed throughout the day and that it can be done within minutes is letting retailers adapt the promo to fit in with the demographics of passers-by.
As well as changing the message to reflect what they are likely to be interested in buying at various points in the day. It is common for stores that use them well to increase their footfall by 17%, sometimes more.
Once people are in-store further screens display even more tempting offers. But that is just the beginning. Physical retailers are waking up to the fact that digital display screens can be used for far more than marketing.
This comprehensive guide to supermarket digital signage explains how they are using them, for branding, data analysis, to assist customers, increase sales of high-profit margin products, and much more besides.
Installing new digital screen technology
The emergence of new touch technology is also impacting the way stores use digital displays.
They are starting to locate them at customer service desks to save customers from having to queue to return goods, ask questions and cash out their loyalty points.
Many fashion retailers are now using screens to let people see what they would look like in a certain outfit. Or to browse what is in-store on a screen rather than having to walk around the shop.
An innovation that is surprisingly popular with shoppers, who prefer browsing using a screen, but still want to try clothes on before they buy.
QR codes everywhere
The use of QR codes has finally started to take off. Across the world, retailers are using them to tell customers more about products they are interested in buying.
For example, what they are made of, care instructions, and what sizes they are available in. As well as when an item that is out of stock is due to be back in stock.
The in-store social shopping experience
They are also being used to enhance the new social shopping experiences that some stores are developing.
Burberry has taken the physical shop and blended it with the digital world using a combination of social apps, QR codes, touch screens, and virtual mirrors to produce a unique way of shopping. Elements of which are being taken up and rolled out by other retailers.
In-queue checkouts
At times stores get so busy that they end up with queues at all of the physical and self-service checkouts.
At M&S, in the UK, there is a third way to pay that makes sure that someone who only wants a few items does not have to queue for long.
Those customers can be approached by a member of staff with a handheld device that scans their purchases and accepts payment via their phones. An operation, which in turn reduces the length of the queue for other customers.
Consumers want more in-store innovations
Consumers have welcomed the majority of these innovations.
To the point where many are actively seeking out those retailers who are using tech to streamline the shopping process for them. Something that is likely to further speed up the roll-out of new in-store technology over the coming few years.