The global brick-and-mortar retail industry has been more resilient in recent years than anticipated. From the rise of e-commerce to the shockwaves of the global pandemic—and shoppers choosing or being mandated to stay away from stores—retailers have faced more than their fair share of challenges. But the industry has remained stronger than ever.
After the height of the pandemic, in-store experiences became essential as shoppers returned to stores in large numbers—and with equally strong spending power. One Mastercard SpendingPulse Report saw consumer spending in U.S. stores increase significantly in 2022. Retail spending (excluding auto) rose 10 percent in February compared to the same month the previous year and 8 percent compared to pre-pandemic levels.
Strength and resilience continue to grow, but industry challenges are mounting at an equal pace. The lingering effects of the pandemic, inflation, and economic uncertainty have significantly wounded retail and impacted the supply chain.
To be efficient, competitive, and profitable, you need new strategies and solutions to help you get there. Retail technology can help, and we’ll show you how.
Exploring Machine Learning (ML) and Artificial Intelligence (A.I.)
A.I. in retail is instilling flexibility in the face of supply chain disruption. Retailers need an approach underpinned by A.I. to adapt to rapidly changing markets and operational challenges—and increasingly sophisticated retail technology can build resilience and efficiency.
ML and A.I. provide several benefits and applications in brick-and-mortar retail. Many retailers are using A.I. to transform in-store customer experiences and automate core operations. Customer demand fluctuations impact everything from supply to service needs, while manual data entry can lead to costly errors. Fortunately, retailers can leverage A.I. to streamline it all, greatly improving operational efficiency in the process.
To meet the growing opportunity and demand for A.I., Optimum Retailing (OR) focuses on automation to help clients compete, increase operational efficiencies, and improve store performance. As indicated in our white paper for the National Retail Federation (NRF) Big Show 2022, ML and A.I. have the power to drive economic and business recovery.—and they’re already doing just that.
Take some of our latest and greatest additions to the OR platform example:
Automated Photo Compliance (APC)
Powered by A.I., ML, and computer vision, APC was developed by the OR team with the view that retail planning and planograms are only as effective as implementation. It provides confidence that visual merchandising strategies and campaigns are being accurately executed thanks to a “realgram” and visibility into store-level retail operations simply by having an employee hold a phone up to fixtures.
Product-Tracking RFID Integration
Product-tracking RFID and A.I. technologies significantly enhance customer experiences while also improving retail efficiencies for store team members and HQ. How? RFID empowers brick-and-mortar retailers to monitor in-store product displays and maintain compliance across locations seamlessly. With these solutions on deck, retailers can track and locate store products in near real-time with 99 percent accuracy.
Store Data and Analytics
Today’s global environment requires retailers to manage their operations with fewer resources. The OR platform builds store-specific profiles using advanced tools to collect and analyze multiple sources of retail data. With it, we can obtain A.I.-driven behavioral-based insights into each store to help partners plan more intelligently, drive down costs to strengthen store performance, and ultimately reinforce the strength of brick-and-mortar in the face of uncertainty.
By leveraging localized insights, partners can personalize products, messages, and campaigns to drive traffic and conversion rates. Partners can also improve retail operations through workforce management and SKU optimization tools, automation, and store management to optimize go-to-market efficiencies.
Strengthening Customer Loyalty and In-Store Experiences
Understanding your customers and fostering a positive in-store experience has never been more important in the face of ongoing supply chain challenges. These obstacles can easily frustrate customers, and you can’t always fix them.
However retailers can understand customers on a new level and strive to offer a personalized experience. In addition to driving loyalty at a critical time, doing so will help you:
Keep tabs on customer needs.
The retail industry is rapidly evolving, and consumer preferences and habits are changing just as fast. You need to understand these shifts to please customers. Brands that don’t risk losing customers who expect to be understood before they walk through the door.
Personalize experiences.
Retailers must capture customers’ attention once they’ve entered the store. A few ways to do so successfully? By enhancing the in-store experience, implementing personalization, and focusing on localization.
Drive referrals.
Word of mouth is powerful, and loyal customers are your best assets. If a customer trusts your brand, they'll recommend it to friends and family, driving traffic and sales.
Navigate Uncertainty with Effective Retail Technology
Brick-and-mortar retailers can stay competitive by planning intelligently and embracing today’s retail technology. They can mitigate risks, reduce costs, find operational efficiencies, and improve store performance—all while keeping customers engaged and coming back.
Optimum Retailing is an industry leader in localizing brick-and-mortar retail planning and execution. We help you maximize the benefits of A.I. and leverage data to prioritize consumer insights. We’re ready to help your team navigate the industry’s evolving challenges.
Discover the capabilities of our retail intelligence platform and get in touch to drive your brand forward.
