CEO at Raydiant, creating a market-leading offering that brings brick-&-mortar locations to life.
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Retail leaders must continually evolve their spaces and operations to deliver quality products, services and experiences. It's obvious that brick-and-mortar stores still have a place in the retail landscape, but how will they evolve their offerings and experiences to keep up with changing customer demands?
Our company has been tracking retail technology since 2017, and we talk to retail leaders every day about what they see on the horizon. Look for these 10 trends to impact the retail industry in the next year.
Technology-Driven In-Store Experiences
The future of retail will be tech-driven, and the global smart retail market size is expected to grow at a CAGR of 29.1% by 2030. The pandemic spurred many retailers to invest in technologies like buy-online-pick-up-in-store (BOPUS) and self-checkout. We'll see the continued acceleration of technologies to streamline operations and enhance the customer experience.
I believe digital, dynamic signage will increase, as will the use of AI to personalize the shopping experience. We'll see even more use of augmented and virtual reality in stores as retailers explore ways it can enhance the customer experience through product interactions or virtual try-ons.
Enhanced E-Commerce Integration
Retailers today are conducting omnichannel business through both online and in-location offerings. In 2024, we'll see more integrations between the two. Retailers will strive to make the online and in-store experiences feel the same through consistent branding. Customers will be able to move from the online browsing experience to in-store through tech capabilities that can bring up their online lists or offer personalization based on their online behavior.
Sustainability At The Forefront
Sustainability is on the minds of both retailers and customers these days, and 93% of consumers are looking to make sustainable purchases either at the same rate as they have or even more. Retail leaders can capitalize on this trend by making their products more sustainable or featuring products from sustainable companies. Look at sourcing from sustainable partners in the supply chain as well, and audit your operations to find more eco-friendly approaches, from energy-efficient lighting to recyclable packaging.
Personalized Customer Experiences
Customer demand for personalization has only been growing, and 71% of consumers expect the businesses they buy from to get to know their individual interests. Retailers can offer personalized experiences through in-store technology where customers can bring up accounts and carts on digital screens and receive specialized suggestions or offers in the store. Retailers can provide multiple options for how the customer wants to drive their experience, like self-service kiosks, BOPUS options and self-checkout alongside traditional methods. Of course, personalized customer service from friendly associates goes a long way as well.
The Growth Of Cashierless Checkout Systems
Not only will we continue to see an ongoing desire for self-checkout options, but we'll also see more customer demand for various types of touchless payments by waving a smartphone or watch. Retailers need to be ready for a future of mobile payments or even sensor payments where Internet of Things (IoT) devices ring out your products as you choose them, like at the Amazon Go stores.
Emphasis On Local And Community-Centric Retail
Customers will continue shopping at small businesses and seek out local and specialized products in 2024. Retailers can draw customers in by focusing on unique local goods and using their physical spaces to build community and connection among their customers. Collect and analyze your customer data so that you can provide hyperlocal personalization for those who shop in your community as well.
Rise Of Experiential Retail
Customers are looking for the retailers they shop with to offer them unique in-store experiences they can't get online. According to Salesforce data, 80% of surveyed customers agree that the customer experience a business provides is just as important as its products and services.
There are several different experiential options retailers can offer: digital, interactive screens and signage; self-service kiosks and self-checkout options; AR and VR experiences to learn more about products or for virtual try-ons; entertainment, classes or events or even ambient lighting or music.
Integration Of Smart Devices And IoT
As tech integrations increase, so will the use of IoT technology in inventory management and customer interaction. One example is smart shelves, which can track if products are on the shelf and automatically place orders if they're not. Smart shelves can also use dynamic digital displays to tell customers about the products or show personalized offers for them. Look for IoT and smart device-enhanced stores to make retail management more efficient.
Shift In Retail Workforce Dynamics
Retailers have seen massive shifts in the workforce over the past few years and will need to plan for the same in 2024. Take steps to make sure your workforce is engaged and satisfied. Do this by providing them with the tools and technology they need to do their jobs well, as well as providing training through apps or roleplaying. Create a supportive environment by listening to employees and taking action to resolve issues, and use rewards and recognitions to boost engagement. Studies have shown that happy employees result in happy customers.
The Social Media Influence
Social media has been an ongoing channel for brand and product discovery, but it's also recently become a place for product purchases. Social media platforms like Instagram and TikTok have integrations that allow retailers to create in-app browsing and purchases, reducing steps and friction in the e-commerce shopping experience. We'll only see this trend increase, with U.S. consumers expected to spend nearly $80 billion annually on social commerce by 2025—5% of total e-commerce.
Retail’s Continued Evolution Into The Future
Enhanced by technology to improve the customer experience, retail will continue to have a bright and interesting future as it evolves and transforms its spaces and operations to deliver great experiences to its customers. However, if retailers expect to grow with the industry, they must stay on top of tech and consumer behavior trends so they can give customers what they seek in 2024.
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