The retail landscape is constantly changing. Businesses in this sector are always looking for ways to improve efficiency and maximize profits, which keeps this industry on the cutting edge. Companies that hope to maintain a competitive edge and stay relevant in the new technology landscape should embrace these new paradigms.
These days, digital platforms and technologies are redefining and revolutionizing retail operations. This should come as no surprise, considering that the retail sector is no stranger to technological innovation — e-commerce, self-checkouts, and more have already revolutionized the shopping experience.
However, these businesses also have the opportunity to revolutionize their backend operations with the help of powerful new digital tools. Greg Sugar, President of LineZero, has over 15 years of experience in digital and IT strategy, helping business leaders in a wide array of industries — including retail — optimize their processes by adopting the latest innovative technologies.
“Today, we are experiencing a period of near-unprecedented innovation,” says Sugar. Businesses should embrace these powerful technologies and their potential to improve retail operations.”
Technological innovations in the retail space
One technology that has shown incredible potential to revolutionize the retail industry is artificial intelligence. Through AI automation and machine learning, businesses have the potential to significantly streamline the more monotonous aspects of their operations, from inventory management to customer relations. By automating these processes, retail businesses can improve their efficiency and productivity in spades and offer their customers a more personalized experience.
For example, retail businesses can improve their inventory management process by using AI’s advanced predictive analytics capabilities.
“An AI model can be trained to analyze data regarding the sales performance and demand of a particular product, allowing the retailer to order the proper amount of inventory for their needs,” Sugar explains. “Thanks to these analytics, retailers can save money on overstock that won’t be sold and storage space while reducing the risk of shortages that also cut into profits.”
However, these predictive analytics help retailers in more than a financial sense. With better inventory management through AI, retailers can further improve their sustainability initiatives and reduce their environmental impact.
“Producing and shipping products contributes significantly to greenhouse gas emissions,” Sugar asserts. “With the help of AI-powered predictive analytics, retailers can order what they need with greater accuracy than before.
Some have expressed concern that artificial intelligence could create significant job displacement. While it is true that AI will likely phase out some lower-level employees by replacing them with much more efficient automated processes, there are also opportunities for reskilling and upskilling. Many workers will find that their positions are changing to encompass duties where they are overseeing automated processes rather than manually completing them.
How technology will impact the employee and customer experience
Those who work in the retail sector will also see an increased investment in the employee experience thanks to advancements in AI and other technologies. Companies are beginning to understand and embrace the fact that employee satisfaction has an interconnected relationship with the customer experience.
Studies show that engaged workforces are 21% more profitable and 17% more productive. Happy employees translate into happy customers, as another Gallup study shows.
So, how can retail businesses integrate innovative technology into their operations to improve employee engagement and the customer experience?
“We have seen great success in using digital tools for training and development,” says Sugar. “Traditional methods of training include reading manuals, sitting through presentations, and watching videos. These are very passive forms of learning, but digital tools have been created to give employees a more hands-on approach to training.”
Sugar points to tools like virtual and augmented reality (VR/AR) and the metaverse as having particular potential for training applications. In the retail sector, VR/AR technology can give employees, no matter where they might be located, an opportunity to “experience” the retail location virtually without having to travel to the physical storefront, providing significant cost and time savings.
Innovations have also been introduced that allow businesses to drastically improve communication. Cloud platforms facilitate seamless employee connectivity regardless of their geographical location, granting real-time access to uniform information across the organization. This shared access empowers employees to deliver a consistently exceptional experience to their customers.
With the help of new technology, retail businesses have the potential to revolutionize virtually every aspect of their operations — from inventory management to internal communication — which will profoundly impact not only their efficiency and productivity but also the customer experience.
