Retail is a fiercely competitive market – on and offline – and businesses in the sector are looking for any advantage they can to get ahead of their rivals. Increasingly it is technology that is providing that, which gives resellers opportunities.
Retail continues to be a tough sector for many businesses in 2023. Retail sales volumes are estimated to have fallen by 0.3% in October, following a fall of 1.1% in September, according to statistics from the Office for National Statistics (ONS).
Looking more broadly, sales volumes fell by 1.1% in the three months to October when compared with the previous three months, the ONS reported.
This means competition is intense among businesses, according to Steve Grainger, founder and managing director of Enigma Interactive. “Competition in retail is fierce now, for retailers online and on the high street, but smart application of well-considered technology has the potential to be a real differentiator and generate that competitive advantage,” he says.
“For physical retailers, there are massive opportunities to blend their in-person and digital offerings to create a best of all worlds solution that brings the joy back to the customer experience, while for online only retailers it’s about being smart with the details to ensure that the user experience is attractive enough to get customers coming back and recommending you. It’s less about copying trends of others though, and more about understanding just what technology can do and how it can be applied to support the business strategy and add positive value for customers.
“For e-commerce-only retailers, being creative with technology solutions to offer a better customer experience is critical – because that is the only real key point of difference between vendors selling the same or similar products. There are lots of options out there to enhance the experience, curate products to make browsing easier, support to streamline delivery or make it faster, or even offer personalised products that enhance your offer.”
Steve adds that retailers with a physical presence should think about using technology that will blend the best parts of shopping online with the experience of coming into a store. “A few years ago, there was a real push towards making in-person shopping an experience, but, in reality, people are there to buy things – so technology should be used to make that as easy and as fun as possible,” he says. “These solutions don’t have to be rocket science either – one of the frustrations about the high street is that, often, product lines are shorter and there might not always be the right size, cut or colour a customer is looking for. In-store tech that allows customers to browse and buy extended collections while still in-store, and even ship purchases home so they don’t have to carry the bags is one way to bring the convenience of online shopping to the high street while solving a real consumer issue.
“But whatever is done with technology it should be to move a business forward, not just for the sake of it.”
Point of difference
Henk Ijspeerd, sales director EMEA strategic segment retail at Vertiv, notes that as retail is a very fast moving market retailers need to do all they can to stand out and differentiate in areas such as quality, price, shopping experience or how consumer or environmentally friendly they are.
“The relentless pace of technological advancements – such as artificial intelligence (AI), virtual reality and augmented reality – add another layer of opportunity to differentiate but require retailers to be agile and innovative in adopting technologies that enhance the customer experience,” he says. “To take advantage of these, they must create an IT infrastructure that meets the needs of today and tomorrow because it is this foundation that will enable retailers to act fast to implement new systems and applications and speedily standardise them across all stores and warehouses.”
Henk adds that the escalating pressure on energy grids is also influencing retailers. “Retailers have the potential to become contributors to grid stability,” he says. “By embracing more sustainable energy practices such as the integration of renewable energy like solar panels and wind turbines, strategic storage of energy in batteries (Battery Energy Storage Solutions; BESS) and use of uninterruptible power supply (UPS) solutions with dynamic grid support features, retailers can not only fortify their own infrastructure against disruptions and help to reduce their carbon footprint, but they can also mitigate the strain on the grid, transforming themselves into active participants in the broader energy ecosystem by contributing to grid stability.”
This is increasingly important as every point of sale (including printers) needs to be always operational, Henk adds. “Because the grid is getting less stable, it is essential that retailers install an UPS. If a grid failure occurs retailers need back-up power from a UPS to enable shoppers in stores to always have the capability to pay for their goods and leave the shop safely.”
Labelling technology
Another aspect of technology that retailers are increasingly focusing on concerns labeling. “Retailers are turning to labelling technology to help shore-up cost efficiencies as inflation continues to squeeze margins, and to help provide a first-class customer experience as they compete for subdued demand,” says Simon Brennan, senior end user client manager at Brother UK.
“A recent Brother survey found that 38% of retailers admit to making labelling mistakes on products at least once a day, and 74% of retailers are looking to invest in technology to help them enhance their in-store labelling as a result.
“Mislabeling items inadvertently thins margins, and risks confrontation between shoppers and staff. Resellers have a key role in providing the right technology to help minimise shop floor errors. Handheld mobile devices allow staff to quickly pick and pack goods in the stock room, as well as label price markdowns in the aisle, which is why they’re in high demand.
“Retailers also want to produce banners and signage in-house as it means they won’t need to work with external suppliers for their displays, helping to save time and money. Businesses can react rapidly to promote sales opportunities and keep the design of the store fresh to enhance the customer experience too. We recently launched our first colour inkjet device to support these efforts, which has been designed for retailers looking to create high-quality signage and banners up to 2.7 metres.
“Retailers’ quest to boost efficiency and improve the experience on the shop floor will continue to offer new opportunities for resellers to engage with customers. Meeting these needs will mean working with experienced vendors that are creating the new tech that will deliver the gains firms are looking for.”
Smooth operators
Nick Delis, senior VP of international and strategic business at Five9, says that the challenge for brands is to make all customer interactions as smooth and seamless as possible, and tech solutions are key to achieving this. “Returns, in particular, can sour an otherwise positive online purchasing experience – especially if customers are forced to return an item via the post office when the very reason for shopping online was to avoid crowds,” he says.
“Effective tech solutions that increase efficiency and save time can make all the difference in creating a positive customer experience that leads to repeat business. Investing in the necessary infrastructure to provide an efficient and reliable purchasing experience now can help avoid the risk of being overtaken by competitors in future.
“When customers purchase items, they don’t want to be left guessing when they’ll hear from the retailer again. Instead, they want consistent and up-to-date information to be provided on their purchases, refunds, or exchanges. From there, retailers can understand why a customer returned an item and suggest similar alternatives.
“The same approach should apply to resellers. Consistent conversation with retail clients is vital to truly understand their needs as they evolve. Only with this deep customer understanding will resellers be able to suggest the right tech solutions that address their client’s unique opportunities and challenges.”
Reseller conversations
James Clarkson, CEO and founder of Adventoris, adds that resellers’ conversations with customers need to be honest. “Technology providers and resellers can only truly try to solve a problem if we know the nitty gritty details and pain points,” he says. “There is often a solution out there, but we need to know what the problem is
in depth.
“Technology is also an industry where one size does not fit all. What worked for your peers might not be suitable for your business, your strategy and your goals, that’s why it’s super important that we know where you are, and where you want to be, so that we can help you achieve those goals effectively.
“While out of the box solutions can deliver amazing results, the same will go for many brands, but with our B2B sales platform SwiftCloud we can create bespoke developments to suit your needs. For example, we’ve created a range of language options for global workplace solutions innovator, Fellowes, based on its need to operate in multiple markets.
“Being open and honest with your tech providers is the best way to achieve success.”
Rob Cottrill, technology director at ANS, adds that resellers’ conversations with retailers need to focus on one question in particular: how are they using technology to improve their customers’ experience?
“If retailers understand this, they can work with resellers to implement the best technologies to achieve success,” he says. “This can be anything from an AI chatbot to a virtual reality fitting room. They also shouldn’t forget that having customer experience at the heart will still ultimately lead to increased profit margins.”
Henk adds that retailers are mainly driven by data today. “It is the meticulous creation and storage of comprehensive data profiles for each customer type that will make the critical difference to whether a retailer is successful or not,” he says. “These data profiles empower retailers to gain precious insights and make informed, data-driven decisions to propel their businesses forward. One element that will help resellers is if the partner/vendor has proven expertise in the realm of AI. This invaluable knowledge will strategically place resellers at the forefront of retailers’ minds at a time when AI is poised to thrive and realise its full potential.”
AI influence
AI is becoming more of a factor for retail businesses. says that in terms of trends, AI is dominating conversations with resellers, given the significant opportunities these solutions offer their retail clients, Nick says. “The immediate availability of AI-enabled chatbots, for example, makes it possible for retail brands to be available 24/7, ensuring that customers can place orders and seek assistance at any time of the day,” he says.
“This level of accessibility is a game-changer in today’s fast-paced world of retail, meeting the diverse needs and schedules of consumers while handling large volumes of inquiries simultaneously. This is fast becoming a customer expectation, so we’re seeing increased demand from resellers for more reliable and efficient AI chatbot technologies as they become a key part of the online customer journey.”
Barry Grange, chief executive officer at Retail Express, adds that the rise and popularity of AI tools like ChatGPT has fuelled an explosion of interest within the C-suite. “This, in turn, has added impetus to the digital transformation of retail and fostered a growing appetite for algorithmic retailing – the use of AI to create more intelligent retail and merchandising practices, helping to drive automation and secure competitive advantage,” he says.
“In these difficult economic times, the introduction of AI technology offers retailers the one-time generational change they need. Properly planned and managed, algorithmic retailing provides improvements to the cost and effectiveness of planning, the execution of merchandising, and collaboration with suppliers. Moving to an AI-backed retail model is a must, particularly for proactive larger retailers for whom the most significant opportunities exist.
“AI technology brings automation and optimisation into end-to-end retail and merchandising processes. Traditionally, retailers have found this difficult, partly due to siloed foundational legacy systems. Prioritising the creation of integrated systems and common data infrastructures unlocks the potential of AI to make meaningful change.
“The transition to algorithmic retailing is a marathon, not a sprint. We are only in the first innings of retail AI. But some business areas can make major moves now, particularly the under-invested and underappreciated areas of merchandising and supplier negotiation. Retailers negotiate with thousands of suppliers to build joint promotional plans, a process which is rife with spreadsheets, phone calls, emails and siloed systems. The opportunity to replace these challenging systems with a guard-railed AI model offers incredible optimisation to one of the most important processes in the retail sphere.
“Retailers must address process change and embrace digital transformation in the next several years or they will fall back badly. So why not now? Remove silos, refine system infrastructure, and invest in AI for that strategic first-mover advantage.”
Differentiation demand
James adds that technology will continue to be the differentiator for retail businesses, which gives resellers ongoing opportunities.
“The pandemic led many to adopt new technologies, whether that be customer-facing ecommerce or behind the scenes trade channels, to simply keep operating,” he says. “This meant that for many firms, these technologies quickly became the norm. Any retailers who didn’t adopt new technology are now behind their peers, no matter the reason for onboarding this technology.
“Those who did adopt are now reaping the benefits and growing from there. What was an urgent fix is now being used to improve efficiency, deliverability and processes across the board.
“Now more than ever, customers are demanding differentiation from their retailers, whether that be sustainable choices or customer experience, and technology can be a huge driver for this. This can be through point-of-sale displays, shorter wait times or better offers.”
Rob adds that retailers that embrace and invest in technology are more likely to stay relevant and continue to gain a competitive edge over their rivals. “Ultimately, retailers are using technology to improve customer experience and increase profit margins to try and outrun inflation,” he says.
