Ten Disruptive Digital Trends Retailers Need To Know

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TENDISRUPTIVEDIGITAL TRENDSRETAILERS NEED TO KNOW

Oliver GuyRetail Industry Director

“The worlds of “e-commerce” and “brick and mortar” retail are merging with retailers aspiring to deliver a seamlessomni-channel experience for their customers.

Mobile, Cloud, Analytics and Social Media will move towards being fully integrated into a unified merchandising approach that vastly improves customer engagement…

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TENDISRUPTIVEDIGITAL TRENDSRETAILERS NEED TO KNOW

Oliver GuyRetail Industry Director

The notion that “the store is dead” is not, in my opinion, the future – rather, stores will become highly technology-enabled to deliver a super-personalized customer experience and become the hub of omni-channel customer-centricity.

These 10 new predictions highlight my view of the retail industry in the coming year…”

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#1 FEWER STORES

MORESTUFF

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Brick and mortar storeswill add fewer new outlets as they dramatically reinvent themselves to address OMNI-CHANNEL CHALLENGES, and offer more services…

#1 FEWER STORES

MORESTUFF

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① Endless aisle give customers access to ever increasing assortment

#1 FEWER STORES

MORESTUFF

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② Marketplace initiatives increase assortment where retailers don’t carry inventory themselves

#1 FEWER STORES

MORESTUFF

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③ Hub & Spoke approach allows smaller stores to supply broader assortment

#1 FEWER STORES

MORESTUFF

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③ Hub & Spoke approach allows smaller stores to supply broader assortment

④ Home delivery and collection from stores

#1 FEWER STORES

MORESTUFF

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#2 IT’S ALL ABOUT YOU

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Real-timeCUSTOMERCENTRICY

comes of age

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① More data sources will improve targeting


comes of age

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comes of age① More data sources will

improve targeting

② Technology will aid improved context to provide offers at store ingress, rather than the exit

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#3 THE PRICE IS RIGHT

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DYNAMIC pricingwill move from the web to “in-store”

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DYNAMIC pricingwill move from the web to “in-store”

Consumer response models+ real-time inventory

+ real-time in-store analysis

+ connectivity

+ electronic shelf edge labels

= real time pricing capability

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#4 MISSION CONTROL FOR OMNI-EVERYTHING

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Retailerswill need acentralizedmission control


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Retailerswill need acentralizedmission control

① Consumer choice means the customer journey will move across channels even more

② Operations across channels needs high levels of automation along with central visibility and control


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#5 YOU WILL MEET A TALL DARKSTRANGER…

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Predictive analytics will be used to improve operational performance

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Predictive Analytics + Real-Time Analytics = Productivity Potential

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① Manage Queues

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① Manage Queues② Reduce Inventory

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① Manage Queues② Reduce Inventory③ Serve Customer

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#6THEINTERNET

OFTOTALSATISFACTION

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#6THEINTERNET

OFTOTALSATISFACTION

The store of the future will leverage

the Internet of Things to power Customer

Centricity

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#6THEINTERNET

OFTOTALSATISFACTION

The store of the future will leverage

the Internet of Things to power Customer

Centricity

Intelligent use of sensors will enable:① Inventory reduction

② Improved on-shelf availability

③ Queue reduction

④ Streamlined order pick up

⑤ Real-time, personalized promotions

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#7 IMMERSION THERAPY

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#7 IMMERSION THERAPY Augmented

In-StoreReality

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#7 IMMERSION THERAPY Augmented

In-StoreReality

Technologies such as Microsoft’s Hololens and Oculus Rift will enable retailers to show their products in more detail and provide a much more immersive experience

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#8 CLEAN UP ON AISLE THREE

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Retailers willuse technology

to monitor stores

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to monitor stores

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to monitor stores

① Improved associate productivity

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to monitor stores


② Improvedinventoryvisibility

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to monitor stores

③ Focus on in-storeproductivity means

greater use oftechnology



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to monitor stores

③ Focus on in-storeproductivity means

greater use oftechnology



④ Multiple sensor feeds give real-time view of store operations to aid resource allocation

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#9 BUY ME NOW!

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#9 BUY ME NOW!Buy buttons will appear in MORE places

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#9 BUY ME NOW!Buy buttons will appear in MORE places

New shopping apps, on-line news articles, new games and a myriad new venues will create new challenges in understanding inventory and orchestrating orders for these new retail intermediaries as well as the retailers supporting them

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#10 LAST ITEM IN STOCKUnderstanding REAL-TIME Inventory will become REAL

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Consumers want to understand retailer inventory before buying to satisfy their desire for INSTANT GRATIFICATION

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Retailers will need to connect to multiple inventory sources to gain a common view and a complete stock picture so they can DELIGHT THEIR CUSTOMERS

45 | © 2015 Software AG. All rights reserved. For internal use only

About Oliver GuyOliver is Retail Industry Director at Software AG. Oliver advises and supports retailers across the globe understanding retail technology solutions and how they can solve problems, drive growth, minimize risk and reduce cost as the industry transforms.

Oliver has over 20 years experience working with technology; he has spent 15 of these years working with retailers around the world to improve their business through the use of innovative technology solutions.

Learn more about Software AG’s retail solutions: www.SoftwareAG.com\retail.

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