Technology is transforming the retail landscape. At the rate of innovation, organisations must stay up-to-date with what trends are emerging in the industry. For 2023, Supply Chain Channel has compiled a list of the top 5 retail technology trends predicted to disrupt the year.
The retail landscape is rapidly changing as consumer behaviours grow more unpredictable with the rise of e-commerce. While in-store shopping is not obsolete, retailers are facing new challenges as customers demand seamless and more personalised experiences throughout their purchases.
For retailers, these issues spell out a push for innovation, particularly through embracing technology. With the wave of competition quickly rising, businesses need to move at the speed of consumers to succeed.
Here, we look at the top five retail technology trends poised to shape the industry this year (and potentially for years to come).
Full time visibility
The importance of visibility is not only for customers to track their packages; it extends to retailers being on top of their inventory in store and in the warehouse. Having full visibility on inventory across the entire network allows businesses to better meet customer demand and respond to any issues in real-time, thereby avoiding delays and reducing costs.
In a 2022 study by Manhattan Associates, one in four consumers said they expect store employees to know stock availability/inventory for effective customer service. However, only 6 per cent of retailers believed that they had an accurate overview of their inventory across their entire network (in-store and online) all the time.
This presents a gap in inventory visibility that businesses need to address quickly. With the supply chain becoming more complicated – involving multiple nodes and participants – inventory visibility is key to customer satisfaction and ultimately, bottom line growth.
Automation and Robotics
Automation and robotics have revolutionised the way industries operate, with one of the most notable impacts in the retail space. The boom of e-commerce in particular has exacerbated the need for retailers to embrace automated solutions and robots.
In 2021, Australia Post reported that Aussies spent a record $62.3 billion online, a figure that is predicted to double in the next five years. This puts pressure on retailers to scale in order to meet order fulfilment.
One of the emerging trends to meet this surge is the use of agile automation. Agile automation weaves in automated solutions to provide specific improvements in operations, rather than an overhaul of the entire system. Solutions such as autonomous mobile robots (AMRs) help organisations to improve output and manage risk simply by innovating smaller production areas.
Check out this whitepaper by BPS Global: Automation then and now – Common mistakes and how to avoid them
Contactless and Cashless Shopping & Delivery
With the rise of e-commerce sites and marketplaces, customers are also expecting flexible payment options. This is only poised to grow in 2023 (and beyond), so it will be crucial for retailers to be able to adopt and leverage new technologies into their systems.
Fulfilment trends such as buy-online-pickup-in-store (BOPIS) and buy-online-return-in-store (BORIS) are also expected to be sought after from businesses this year. Additionally, buy-now-pay-later features are becoming more prevalent.
These all culminate in improving customer experience. While in-store shopping experience remains just as essential, businesses also need to focus on the crucial ‘last mile’ of the consumer’s retail journey.
Artificial Intelligence & Advanced Analytics
AI-powered automation and advanced analytics can help drive supply chain efficiencies and deliver long-term growth. AI enables enhanced visibility across every point in the supply chain, which is particularly valuable in warehousing and logistics.
Applications of AI also create better demand forecasting. AI tools and advanced analytics can gather valuable insights from consumers, marketplaces and even competitor data to predict industry shifts and help retailers create proactive responses to their business strategies. Not to mention that this helps businesses develop better personalisation for their customers’ retail experience, which can increase customer satisfaction and repeat ordering potential.
Green Technology
Sustainable solutions are no longer a ‘nice to have’; they are a responsibility that can make or break business value. Consumers are becoming more environmentally conscious of their purchases, which means businesses must integrate green technology to reduce their carbon footprint and show their commitment to sustainability.
Top 5 Retail Technology Trends to Watch Out For in 2023
These retail technology trends promise undeniable benefits that may spell out the business success and at the rate of innovation, these are only poised to improve. However, it is important to know which ones are the right fit for your business.