Technology has significantly influenced numerous aspects of modern shopping, both online and offline. Since the introduction of barcodes in the 1970s, the retail industry has continuously adopted and adapted to ongoing technological advances to streamline various aspects of their operations, from in-store processes to inventory management, procurement, warehousing, distribution channels, and payments. Yet when we talk about retail technology today, what is often meant is the deployment of emerging technologies like A, IoT, and immersive experiences such as AR and VR in retail operations. Over the past years, the
received a total funding of almost 300 billion U.S. dollars. The majority of these deals took place in
Automation, automation, automation
Automation powered by artificial intelligence is infiltrating every aspect of the economy and business, and since the retail industry impacts millions of people, it is particularly exposed to these developments. However, the retail industry also has the potential to benefit from these advancements in automation. In 2021, the
global market for retail automation was estimated to size up to four billion U.S. dollars, with a projection to reach 33 billion U.S. dollars. Other new areas in the retail industry that make use of emerging technologies are
self-checkout and
virtual fitting rooms. These markets are estimated to grow to around 14 billion U.S. dollars by 2030. The
three main benefits of AI retail executives highlighted in recent survey were increased productivity, cost reduction in operations, and faster time to profitability.
What technologies retailers are planning and prioritizing for investment?
Retail companies already acknowledge the importance of emerging technologies in their business operations. Although the full deployment of such technologies is a long way off, some consumer goods and retail companies are testing the waters. In a 2022 survey, a quarter of respondents from the industry said they were piloting immersive technologies that allow shoppers to
virtually look up and place products such as furniture or home décor. A more personalized customer experience comes forward as another key area. In the U.S., the leading
technology retailers said they were prioritizing for 2023 was customer experience. UK retailers are also focusing on
creating a seamless customer experience, and they are currently exploring innovative solutions in this area.
Are consumers ready for AR-shopping?
In line with this, consumers have expectations from retailers to deliver a more hassle-free shopping experience. In a survey,
easy mobile payments and smart vending machines were found to make consumers’ shopping experience much better. That said, consumers seem to be less enthusiastic about some of the technologies that are being innovated right now. This is particularly true of AR and VR experiences in shopping. Around 55 percent of consumers said they would not be
interested in trying out fashion items virtually. In another survey, the impact of AR-powered smart fitting rooms on
consumer likelihood to shop for fashion items in physical stores was found to be low. Only 18 percent of consumers said a connected fitting room would make them go to the physical store.
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