Retailers ramp up tech investment as Covid restrictions lift

79% of high street retailers are planning to implement more technology solutions this year as bosses rely more than ever on insights from their data, according to research from Fourth.

This increases for large retailers (5,000-6,000 employees) at 94%, while 91% slightly smaller businesses (500-999 employees) are also planning to go down this route.

Fourth surveyed 251 HR, digital transformation, finance and operations decision makers at senior manager level or above in retail sector firms of 500-6,000 people.

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37% are likely to implement more in-store technology such as self-checkouts.

Back office technology is an equal priority, with a further 37% looking to invest in it to automate HR and operational processes. 35%, meanwhile, will spend more time analysing data to identify efficiency savings.

Pharmaceutical retailers are most likely to be looking into different tech solutions (76%), followed by sporting goods (69%), and attractions-based retail (69%).

However, 50% of larger businesses and 88% of the biggest retailers are more likely to buck this trend, instead reverting to their old practices.

While 90% of retail leaders are confident they have access to the necessary technologies to capture the data they need for their business to process, analyse, forecast, and evaluate accurate workforce planning, they still face hurdles when extracting those insights.

Staffing has unsurprisingly fluctuated as a direct result of the pandemic, meaning 41% of retail leaders are having to focus on training new staff in using new technology.

Alongside this, one third are facing a lack of relevant talent to manage these technologies. While 34% are further concerned about data security within their businesses.

For larger retailers, a cultural resistance to change internally is the key challenge (41%), followed by a lack of relevant senior talent to manage technology (35%) and having to train staff in using new technology (29%), as well as not wanting to rip and replace legacy systems (29%).

In smaller retail businesses, the top barriers are: having to train staff in using new technology (54%), data security concerns (40%), and a cultural resistance to change internally (38%).

Sebastien Sepierre, Managing Director – EMEA, Fourth, says: “Following 18 months of uncertainty retailers are further embracing digital transformation.”

“By adopting technologies to adapt their retail offering and workforce management, decision makers are ensuring they are able to flex and scale as needed around changing demand.”

“This tech adoption not only allows retailers to evolve the customer experience, catering for a blend of in-store and e-commerce, but also offers a single source of truth for workforce management, leading to better outcomes in employee communication, engagement, retention, and more.”

H concludes: “While tech implementation is a priority for most retailers, it’s not without its challenges.”

“To successfully onboard new technologies retail leaders must prioritise the necessary training, as well as working with their employees to transform company culture as their businesses move away from legacy systems and processes to stay competitive.”