In the Store: Retail
Innovation with a Purpose
By
Kim Warne, Vice President & CMO, Sensormatic Solutions
Many innovations have disrupted the retail
industry in the past 20 years, starting with the introduction of the Internet
and e-commerce and quickly followed by the smart phone. New ways for consumers
to engage with brands have reshaped the core of a retailer’s business — from
labor to inventory and fulfillment — ultimately impacting the overall shopping
experience. As the retail industry has adapted to the new normal, it has shined
the spotlight on what would happen to the future of physical stores.
There has never been a time when technology has been more critical to retail
performance than it is today. Technology is enabling omnichannel strategies,
providing supply chain visibility and changing how retailers connect with
consumers through social media and other digital channels. According to a
forecast from Gartner, global retail sector technology spending is expected to
grow 3.6 percent to reach almost $203.6 billion in 2019 — a major increase for
the industry.
While online and mobile are still integral components in the modern consumer’s
shopping journey, a majority of retail capital investments are now being
allocated to store networks. Making smart technology investments can deliver
tremendous value to retail stores, to optimize staffing, increase inventory
turns, enable secure frictionless transactions, and to empower store associates
to become effective brand ambassadors. To achieve strong store performance now
and in the future, retailers must operate seamlessly and efficiently while
delivering unique, differentiated brand experiences. The right technology
investments can help retailers reach both of these goals simultaneously.
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Starting with the basics: optimizing store performance
Retailers might be surprised to see how making small changes in their operations
can drive significant impact. Extracting value from technology is not a
“one-size-fits-all” exercise, and going back to the basics can help retailers
tailor their approach to their own unique challenges and environments. A good
first step in achieving optimal store performance is to identify operational
improvements that will impact their store today. Robots and drones can help
automate functions, but technologies that can help a shopper more quickly find
the red blouse she’s been searching for will result in stronger sales conversion
and greater shopper loyalty.
By identifying the main business areas that have the maximum effect on the
customer experience, retailers can determine where additional connected
technologies can best assist them in their business model. Core retail
competencies such as understanding the consumer path to purchase and conversion,
gaining an accurate view of inventory across the enterprise, and optimizing and
empowering labor are three ways to drive exponential improvements in store
performance through more intelligent deployment of technology.
Leveraging your investment: new insights through connectivity
Insights into store traffic patterns are key to understanding the path to
purchase and conversion. Smart loss prevention solutions deliver real-time
insights to help retailers make effective data-driven decisions that may
positively impact shrink and bottom line results. Inventory intelligence
solutions help retailers gain item-level visibility into accurate and timely
inventory across the enterprise. Combining data across these solutions can
create even more value as the adoption of data analytics and smart, connected
devices can provide retailers a more holistic, precise view of their business.
With a consolidated view, retailers can better understand peak shopping hours
and combine those insights with inventory visibility to identify when shelves
may need to be restocked. This holistic approach can also help align staffing
decisions with times where there is an increase in sales and conversion, along
with the potential loss events due to heavy foot traffic. When different
business areas work in tandem with each another, retailers can better ensure
that the shopper who was looking for the red blouse not only finds the blouse
faster than before, but also that the experience builds loyalty for repeat
visits.
Decisive transformation: redefining purpose
Significant transformation to sharpen customer focus and innovation with purpose
are required to successfully move into the world of “New Retail.” Ultimately,
retailers must have the right information available at the right time for the
right customers and associates, and are looking to technology to make this
vision a reality. Retailers can fast forward their store performance when they
stop to assess their operations and purposefully invest in solutions that
improve the most critical elements of the shopper experience. Retailers that
embrace change with meaningful innovation will solve unmet customer needs and
thrive in the digital age — today and in the future.
Kim Warne is Vice President and Chief Marketing
Officer of Sensormatic Solutions.
Article originally published
on
apparelmag.com
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