Top Tech Trends in Retail Sector in 2022

The use of digital technology is the need of the hour and has become the foundation for almost all sectors and industries. The retail sector is facing several challenges, shaped by several factors like eCommerce, omnichannel marketing, evolving consumer behavior, hyper-personalization & supply chain complexity. These factors have become more challenging due to the pandemic.

Retailers can boost their capabilities by adopting a strong technology foundation to boost performance and harness technology as a core enabler across various areas of retail. Technology can support the seamless integration of online and offline channels with digital services that can facilitate customer decisions. Using data analytics, personalized offers can be updated in real-time, supported by relevant and attractive digital content. Technology solutions for the supply chain include real-time management, cross-channel order management, automated logistics, human resources, and finance. A strong technology foundation can extend the retail business model beyond the traditional to generate additional revenues, and expand customer touchpoints.

Some reasons why the retail sector needs to implement technology:

Digital purchase - The pandemic has changed the playing field and so have consumer demands and habits along with the spending habits and ways to shop. Online purchases are now the new normal. A robust tech foundation is necessary to keep this digital channel active and interactive.

Supply chain - Technology in the form of cloud computing makes it easier to access the data which can reside on the cloud and this makes supply chain management easier. It connects different parts of the business and provides better visibility helping in the reduction of stockout issues, optimizing inventory, and capturing real-time location data.

Trends - Technology can help predict trends and also help retailers create new products based on customer feedback.

Inventory management - Inventory management is a challenging task for the retail business and particularly for distributors to maintain, manage and track the inventory. Real-time tracking and monitoring benefits using cloud computing technology help resolve these issues effectively. Some technology integration in the form of the following can also assist the retail sector.

1. POS updates are done in real time by integrating the system and back office.

2. Tracking inventory by using RFID or sensors.

3. Mobile integration

Some technology trends for the retail sector in 2022

• Click & collect - Buy online and pickup in-store (BOPIS) had become a necessity during the pandemic times and is now a part of the retail business. It allows sales without the additional cost of expanding the delivery networks and many small retail outlets can be repurposed as local fulfillment centers. The key to running this effectively is using integrated data analytics, order management tools & inventory management systems.

• Augmented reality - This shopping experience is fast becoming a norm in 2022. Virtual fitting rooms, in-store AR navigation, and other AR experiences are being used in unique ways to enhance the customer shopping experience and are bridging the gap between digital storefronts and physical stores. Some applications like try-before-you-buy offer a simulated experience by showing buyers how the outfit will look on them without physically trying it out or buying it. The same concept is used for products other than clothing, like makeup and furniture. Virtual fitting room tech is being implemented by brands like Sephora, Target etc. Brands like Ikea have developed apps for the iPhone that use LiDAR tech to display rooms, check measurements, etc and visualize interior design.

• Artificial intelligence - AI can help in managing inventories very effectively using data analytics. It can help retailers improve demand forecasting, accurately make pricing decisions & optimize product placement. The result is that customers can be offered the right product at the right price. By analyzing data, AI can help order goods as needed. Amazon has taken this much further by introducing its Amazon Go Grocery model stores which are powered by Just Walk Out. It's a proven, scalable, secure, flexible, innovative and smart way to run retail stores and offers customers effortless, convenient ways of shopping. Such innovative ways help retailers make profitable decisions, drive operational efficiencies, and help deliver the best in-store experience using technology.

• Demand forecasting - Demand forecasting using machine learning is a powerful tool for retail businesses. This technology helps in upgrading inventory planning, logistics, manufacturing & marketing. As demand can be forecasted accurately, ordering and production of items can be done as required, leading to more sustainable consumption and production cycle.

• Automation and robots - Robotics and automation have a wide scope of applications in retail like delivery, inventory management & customer service. The Safeway Cart, a pilot project introduced by Albertsons Companies, a grocery giant, is testing grocery delivery using remote-controlled delivery robots developed by a Silicon Valley startup, Tortoise. This is a great example of how large retailers are adopting tech to deliver goods to customers faster. Grubhub is successfully using autonomous delivery vehicles named Yandex robots to deliver food to the college campus of Ohio State University.

Using such technological tools, the retail industry is slowly but surely replacing legacy systems. The retail industry is adapting and using technological innovations to succeed and grow. By creating custom retail software solutions using experienced software firms, the retail sector can benefit immensely from the use of technology. Businesses that cannot adapt to the rapidly changing customer preferences and new technologies will be swept aside as digital transformation and data-centric take center stage.