The retail industry is facing a critical juncture where consumers are experiencing a disconnect between their shopping expectations and the in-store reality. As global retail markets continue to evolve, the industry grapples with the challenges of rolling out in-store technology and integrating advanced AI technology while optimising the supply chain and addressing growing security concerns.
According to SOTI’s new global retail report, Techspectations: Consumer Demand for Digital Transformation in Retail, retailers are grappling with the heightened expectations of consumers anticipating seamless in-store interactions, personalised recommendations and instant access to inventory online and in-store to ensure their continued loyalty.
Emerging Technologies and the Consumer Experience
While consumers crave technology to improve their in-store shopping experience, those offered by retailers do not always meet expectations. The study found that while 93% of Australian consumers have used an in-store device, many believe these devices make the shopping experience worse. Consumers cite challenges in-store such as a lack of staff to assist with issues relating to self-serve machines (35% of users) and as many as 38% of users complain about poor Wi-Fi connectivity when using an in-store device.
The report suggests that consumer expectations have risen, largely due to the sophisticated personalisation and seamless processes available online, which in-store technologies currently fail to match. To address this, retailers must invest in AI-driven solutions and device management to provide consistent, personalised and convenient shopping experiences in both physical stores and online.
Retail Supply Chains Must Meet Real-Time Demands
Supply chain optimisation in the retail industry is critical, as consumers now demand real-time information, efficient product availability and rapid delivery in-store and online. The report reveals that 57% of consumers expect to be able to pick up an item ordered online from a physical store on the same day. Further, 77% of consumers expect to always know the status of their orders, highlighting the need for efficient supply chain visibility.
“Acknowledging the pivotal role of AI in unlocking advanced capabilities in devices is essential. Using AI for predictive diagnostics and proactive support enables retailers to address potential problems before they affect customer interactions,” explained Michael Dyson, VP for Sales, APAC at SOTI. “AI’s ability to combine data such as location, signal quality and speed with vital business metrics, including stock levels and shipment updates, ensures that the convenience and tailored experience offered by online shopping can be mirrored in physical stores.”
Consumer Trust and Data Vulnerability
Security is a significant concern in the retail industry. More than three-quarters (80%) of consumers express concerns about entering personal details online or through in-store devices, indicating a pervasive lack of trust in the data collection and payment technologies used in retail. Security concerns extend to fraud, with 42% of Australian consumers worrying about becoming a victim of financial fraud and another 39% expressing concerns about identity fraud.
Additionally, the report emphasises the importance of in-store device security, as 42% of consumers have concerns that the retailer will not keep their details securely, including the potential exposure of personal details (31%) and the risk of the next user seeing personal information (30%). Despite this, 34% of consumers view in-store devices as tools to enhance shopping convenience and speed, highlighting the need for retailers to balance convenience and security while building trust among those making purchases in the retail space.
“In the next few years, our priorities should be establishing trust, ensuring data protection and crafting integrated experiences that seamlessly connect digital and physical retail spaces,” said Dyson. “Progress towards digital sophistication in the retail industry has been gradual. Advanced operational intelligence tools like SOTI XSight Live View are pivotal in offering real-time visualisation of retail operations and supply chain. Live View offers immediate detection and reaction to operational challenges by integrating device data and operational data. Retailers need to be aware of how devices are being used and be proactive in resolving any issues. The future of retail is not about rapid adoption of technology; it is equally about strategic planning and enhancing scalability through thoughtful implementation.”
SOTI’s latest report, Techspectations: Consumer Demand for Digital Transformation in Retail, can be downloaded here.
Report Methodology
SOTI’s research was conducted between September 3 and September 14, 2023, via 11,000 self-completed interviews from nine markets around the world. All interviewees were consumers aged 18 to 65. The markets represented were: The U.S. (2,000), Canada (1,000), Mexico (1,000), UK (2,000), Germany (1,000), France (1,000), Sweden (1,000), the Netherlands (1,000) and Australia (1,000). In addition to presenting global, overarching trends, the results were broken down into these individual market tables and regional sets for Europe and North America.