Over the last decade, we have seen an incredible amount of technological growth across nearly every industry. Retail tech is changing the way consumers shop, and the way store owners conduct business. As a global economy, we are shifting away from a “seller-centric” mindset and moving deeper and deeper into a “buyer-centric” world. This means the focus is more on the consumer and on improving the buying process each step of the way.

There is no sign of technology slowing down, and during 2019-2020 we expect to see this “buyer-centric” mentality take center stage in our retail economy.

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Artificial Intelligence

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AI is nothing new to the retail community as we have seen a dramatic growth in computer technology taking over the routine and simple jobs of many employers across the country.Artificial intelligence refers to the smart machines that speak, act, comprehend, and learn to allow them to accomplish more in a shorter amount of time than humans.

There has not only been a moral dilemma surrounding AI but an economic one as well. Many companies struggle to see the return on investment with AI because the data is inflexible and there is no history to back up that data.

That said, AI has its advantages over humans by being available all the time, providing faster service, and engaging without emotion unless programmed to do so.

In the years to come, we expect to see an even bigger shift towards emotional intelligence which allows the AI to relate to a consumers needs based on their ability to listen and understand the consumer and make a unique suggestion.

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Omni-Channel Sales Experiences

Technological disruptions and the growth of e-commerce is forcing retailers to take on an omni channel sales approach. It is said that omni channel customers spend 15-30% more than a single channel customer.

This approach refers to a business's ability to sell across multiple platforms. We are seeing that retailers who focused entirely on brick and mortar locations are now selling their products online and developing shipping procedures to reduce cost and lengthy shipping times. This is necessary for small retailers to compete with giants like Amazon and Walmart.

Something we have noticed more recently is cross omni channel retail where you can search online for something to see if it is available in-store and reserve it for pickup when you go in.Being able to receive this type of information without having to pick up the phone or drive to the store allows businesses to decrease their labor costs and it provides a smoother sales process for the consumer. We expect over the next couple of years to find retailers utilizing digital touch points like text messaging for marketing. We’ll also see more in-store touch points like interactive shopping and smart shelf technology. Once again, this reduces the need for a human employee while seamlessly improving the shopping experience.

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The Impact of Pop-Up Stores

For decades we considered a pop-up store a lemonade stand. Pop-ups are allowing small retailers and even individual salespeople to grow a scale a business without ever having a physical location. This type of “boutique” sales strategy has caught the attention of large retailers and even supermarkets that are now leasing out small sections of their stores for other businesses to occupy on a rolling schedule. Macy’s was the first to coin the term “pop-up marketplace.

”We’re not sure if it’s a good thing or the last shot at preventing the retailer from joining the restof the crowd in history.

Pop-up stores further the notion of a “buyer-centric” society because they allow consumers to touch, feel, and see something before they make that purchase. With the rapid growth of e-commerce, we have lost touch with reliable purchasing, and we tend to buy something because it looks good in pictures blindly. This advancement also gives a significant advantage to new products that consumers are not familiar with.

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Data to Help Understand the Customer

Retail tech is not all about the consumer. It has a significant impact on the retailer as well by providing more data than most would ever need. Having the right data allows retailers to forecast sales, manage inventory, monitor labor, and much more.

Beyond the simple data metrics we’ve had for a while we’re also gaining more information about our shoppers through personal shopper data and immersive shopping experience. It’s more important than ever to truly understand your consumer so you can create an experience unique to them. That is one of the major advantages brick, and mortar retail has over e-commerce and it always will. Retailers have the opportunity to create an experience when someone walks into their store, and if they understand their consumer, they’ll have a better chance at doing that.

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