While the oft-predicted “retail apocalypse” has not occurred – experts predict that 72% of U.S. retail sales in 2024 will still take place in traditional brick-and-mortar stores – the last several years have radically transformed in-store commerce, primarily through digital transformation. Shoppers are more tech-enabled, and while retailers don’t need to go as far as robot salespeople, they would do well to pay attention to tech trends that shoppers are embracing and demanding. Still, further integrating technology into brick-and-mortar stores already reeling with new gadgets can be intimidating. However, trends are proving that the right investment in the right technology is vital to ongoing success.

technology in Sarasota retail

First and foremost, technology can streamline in-store operations, completing mundane tasks more quickly and allowing salespeople to engage in more high-impact activities. Self-checkout kiosks, for instance, allow salespeople to be on the floor and in the aisles, facilitating sales and answering questions. These efficiencies not only save time but money -research shows that retailers using automation throughout the buying process cut costs due to faster delivery of orders and avoiding stockouts.

Technology Collects Valuable Information: Technology runs on data, creating opportunities to aggregate insightful information about your customer base. But while this information is vital, consumers are becoming more leery of their privacy. Technology that doesn’t require personal contact or interaction is preferred by an increasing amount of consumers. QR codes that take consumers to a subscription page are one example of how stores can collect data about shoppers without stepping into personal space. Some data regarding this subject:

  • 66% of consumers state that automation improves and enhances their shopping experience, solving problems such as long lines and queries as to product locations.
  • Nearly 60% of consumers would prefer to shop in-store with a retailer that utilizes technology to make their experience more fun, engaging, and productive.

Technology weds the online and in-store environments, allowing for online ordering and in-store pickup; or prompting a customer about their online cart that has not been purchased. However, for many smaller retailers, the hesitation in technology implementation is simply not knowing where to begin. The following six areas have been identified by industry insiders as the most impactful strategies for retailers to implement. Small and medium-sized companies who lack the technical expertise to integrate technology can call on local managed services firms to partner with them in the endeavor.

5 Tech Tools for Retail

    1. QR codes: Quick response (QR) codes are small, barcode-like combinations of black squares that, when scanned by a smartphone camera, retrieve specific information. While some innovators may scoff at the slightly outdated QR code as a “trend,” social distancing protocols during the pandemic reintroduced consumers to the technology, with 59% of shoppers now expecting to see QR codes at their favorite stores.
    2. RFID technology: Managing and maintaining inventory is one of the most reviled jobs in retail, taking up hours of time and resulting in frequent human error. RFID technology resolves the issue or at least reduces the amount of time invested in counting store inventory. RFID tags are small chips that transmit product data to a portable reader and update inventory levels in your management system within just a few seconds – streamlining inventory processes and providing 100% restocking accuracy.
    3. Augmented reality (AR): AR is a newer technology, although already widely accepted. The program places graphics over real-world settings, most commonly seen in Snapchat-style filters that add cartoon features to actual photos or videos. AR drives more robust digital engagement and commerce through social marketplaces, and experts report that nearly 50 million people had engaged with AR on social media in 2022. How does this apply to a retail setting? Customers can try on eyeglasses virtually or use virtual dressing rooms to “try on” clothes – interactions that are proving to have a 94% higher conversion rate than just seeing the products online. Applications for retailers are seemingly endless, allowing consumers to “interact” with the store, take tours, browse aisles, and examine products, all from their living rooms.
    4. Smart checkout: The conventional checkout experience is all but gone in 2023. Retailers who don’t integrate mobile point-of-sale technology at their stores – especially at a time when personnel numbers are down – often force their customers into long checkout lines. Unfortunately, 60% of customers report that long lines will cause them to not purchase anything, especially since they believe automation can ease their pain. Features such as contactless payment, ship-to-home options, digital receipts, and self-checkouts are speeding the purchasing process and making the experience more enjoyable for consumers. Some innovative retailers have already made the transition from barcode scanning to cameras and AI that “ring up” multiple products simultaneously, speeding the checkout process by up to 400%.
    5. Store management: As amazing as technology is, your brick-and-mortar store still needs humans – to open the store, answer questions, display inventory, and assist customers. Management can elevate their employees’ experience with technology as well, primarily by automating payroll (including tips and bonuses) so that employees are paid correctly and on time every time. Apps also allow for more intuitive and interactive scheduling, allowing staff to quickly see and react to schedules or block out times they cannot work. Empowering employees to work more efficiently and productively builds morale and loyalty.

Technology has revolutionized the way people shop, and retailers need to meet customers’ expectations to stay competitive. If you are a retail store looking for ways to improve your customer’s experience through technology, call the IT professionals at Alliance IT today. We specialize in retail environments and SMBs in the Sarasota area.