The Future of Retail – How the Shopping Experience Is Changing
Today’s shopping experience has changed radically from how we shopped even ten years ago. Advancements in technology are already reshaping the retail industry, so it’s easy to see how shopping in the future may be completely different than it is today.
New and exciting technologies will change how retail stores operate, but shoppers will want an easier, less time-consuming, and more convenient way to shop.
How Is the Shopping Experience Currently Changing?
Before we get into the distant future of the retail industry, let’s look at some ways things have already changed.
The mainstream acceptance of online shopping was one of the biggest changes the retail industry ever had to adapt to. Before the rise of e-commerce, the biggest changes in retail were the introduction of credit cards and financing options. That does not mean that the retail industry has stopped changing.
The Rising Importance of Social Media Advertising and Commerce
Retailers understand that one of the most effective ways to entice potential customers is social media advertising and commerce. While online shopping is old news, advertising and selling products directly on social media is a relatively new trend showing no signs of slowing down.
Retailers use social media platforms to advertise new products directly to their customers. While many retailers pay to promote advertisements on these platforms, many shoppers simply follow the accounts of their favorite retailers and brands.
The shopping experience is now more casual than ever before. While browsing through posts from friends and family members, shoppers can now view and purchase products that appeal to them.
Shoppers can now simply tap an image of a product they see on social media, then buy it directly through their smartphones without ever having to visit a physical store or even the retailer’s online store!
The Increasing Demand for Rapid and Free Delivery of Purchased Items
Now more than ever, shoppers demand fast delivery of in-store and online items. Same-day delivery has become an increasingly common option, changing the shopping experience.
With zero-cost shipping that arrives faster than ever, shoppers do not have to venture out to physical, brick-and-mortar stores to purchase items they need in the near future. Even when shopping and buying in-store, many shoppers now expect there to be an option to have items shipped directly to them.
Retailers that do not offer free and fast delivery on items are now struggling to hold the attention and loyalty of their customers. With this trend becoming increasingly popular, it will slowly become the standard for successful retailers.
The Growing Preference for Sustainably-Made Goods and Ethical Manufacturing Processes
In the past few years, shoppers have become incredibly conscious of how their purchasing decisions affect the environment and society. Not only are retailers beginning to focus more on offering sustainable and ethically-made goods, they are now implementing these practices throughout the shopping experience.
Retailers are doing everything from displaying recyclable and eco-friendly packaging and shopping bags to purchasing carbon off-setting credits to counteract the environmental damage of shipping goods to customers. Some retailers are making greater efforts to demonstrate their willingness to focus on diversity in their hiring processes while increasing employee pay and benefits.
Labels once used almost exclusively by the food industry, like organic and locally made, are now becoming more prominent in industries that previously showed no interest in how sustainable or eco-friendly their products were.
Sustainable production practices and a more ethical shopping experience are increasingly important for shoppers and retailers. More people than ever recognize their impact on the world around them; this trend is unlikely to stop.
A Greater Expectation for a Personalized Shopping Experience
Shoppers expect a more personalized shopping experience, so many are now favoring retailers that can customize products and how they are purchased to their unique preferences.
Customized product suggestions can take the form of in-person recommendations by a retail employee, or they can even take place during the online shopping experience. Thanks to advancements in data analytics technology, retailers can now analyze a significant amount of customer data, which means recommendations can be made for products that match a customer’s unique needs, past purchases, habits, and preferences.
Many retailers are now relying on customer loyalty cards and invite-only sale events to reward specific customers for their shopping habits. By doing so, the individual shopper feels the retailer values them and is willing to reward them for their unique shopping behaviors.
The Rising Importance of Data Protection and Privacy
As retail becomes more and more intertwined with the internet, cyber security is becoming even more mainstream.
Consumers expect that their data will be protected from hackers and third parties. Retailers that intentionally or unintentionally leak or sell consumer data are often exposed, which can drastically damage their brand and reputation.
Not only can a retailer’s reputation be destroyed, but consumer protection laws also make data security a government issue. Lawsuits and expensive government fines can cripple a retailer financially if they do not adequately protect customer data.
For retailers that want to stay competitive, protecting their data and that of their customers must be a priority. After several high-profile data breaches from major retailers woke the public up to these concerns, it seems unlikely that shoppers will stop valuing data protection and privacy.
How Will New Technologies Shape the Future of Retail?
Just like the internet and the ability to process payments online altered the entire retail industry, emerging and advancing technologies will almost certainly change the retail industry and shopping experience of the future.
While it is almost impossible to predict the future with any certainty, most retail industry experts agree that the following types of technology will significantly impact shopping in the near and distant future.
Artificial Intelligence (AI) and Machine Learning Systems
Artificial intelligence software is growing in sophistication with each passing day. As a greater variety of industries choose to adopt this exciting technology, it is no surprise that the retail industry is one of the earliest to embrace it.
AI software and machine learning programs are already used to give shoppers personalized product recommendations. Behind the scenes, the technology is even used to find efficiencies in the retail industry’s manufacturing and supply chain sides.
Most retail industry experts agree that this technology will play a significant role in retail in the future. Personalized advertisements, product recommendations, and so much more could all be made more efficient and effective with the aid of AI systems, so it is safe to say that will be the case going forward.
An even more futuristic expectation for AI systems would be their potential to act as non-human sales assistants in physical stores. As these systems become more advanced, they will likely be able to recommend products and answer customer questions efficiently and accurately.
Robotics and Automation Programs
Like most industries, retail already uses robotics and automation systems to streamline everything from production to distribution. Fully automated warehouses and autonomous delivery vehicles are already increasing profits and efficiency by reducing the time it takes to get a product to a customer.
As mentioned above, shopping trends are leaning towards sustainability and a greater consciousness of how a person’s purchases impact the world. Automated systems could cut down on everything from human suffering on the manufacturing side of retail to the environmental impact of using inefficient delivery methods.
Since robotics and automation software can streamline a retailer’s operations and make the entire shopping experience more enjoyable and efficient for the shopper, it will likely continue to grow with the retail industry in the future.
Virtual Reality Software and Hardware
Virtual reality technology is already used in various industries and organizations, including entertainment and medical research. The potential for this technology to be used by the retail sector is incredible.
Virtual reality allows shoppers to visualize products fully before seeing them in person. They could experience what it would be like to have a product in their possession without ever actually seeing the real version.
For example, potential customers could see what a piece of furniture or art would like in their home without going to the store to see it. Why would a shopper waste valuable time and effort driving to a physical store to see a product they were unsure about when they could see a virtual recreation by just seeing it through a VR headset or pair of VR glasses?
Even when shopping in physical stores, customers could have the option to see what products look like without the store even needing to stock the items. Stores could be drastically smaller, radically reducing operating costs and the store’s environmental impact.
Clearly, this technology is going to have a significant impact on the entire retail industry and the shopping experience.
What Should You Do to Prepare for the Future of Retail?
For shoppers and retailers who want to prepare for the future of retail, the main thing is simply paying attention to trends and emerging technologies.
The future of retail will always have a close link to technological advancements, changing consumer behaviors and attitudes, and the state of the economy. Understand that convenience will always be a priority for shoppers, so retailers will continue to adapt to their customers’ shopping experiences.
A sustainable and ethical shopping experience will continue to grow in importance, and retailers should make efforts to practice both environmental and social responsibility. Not only will retailers continue to implement ethical and environmentally friendly practices, but shoppers will expect to see those efforts advertised in-store and online.
Automation and artificial intelligence will also become more prominent in the retail industry, so store owners and shoppers should decide now if they are comfortable with it. Retailers that embrace the technology may do so in subtle ways, so it will have to be something that individuals watch out for. With that said, there are countless advantages that this technology could offer, so it can be something that people are open to.
What Can Store Owners and Shoppers Do About It?
Retail Store Owners
To prepare for the future of retail and shopping, store owners must be proactive by adopting new technologies when they are relevant and paying close attention to new consumer trends and behaviors. Retailers can fall behind and become uncompetitive if they don’t. It does not take long for a store or brand to become untrendy and unpopular in the retail industry.
Retailers also need to embrace social media marketing and the importance of customer engagement. Creating a mobile-friendly shopping experience is crucial; it is a trend showing no signs of slowing down.
To stay competitive, traditional brick-and-mortar retailers must also create a more memorable and enjoyable shopping experience. With online shopping and even social media-based e-commerce becoming the norm, physical stores need to offer something their customers cannot get online to stay competitive.
This could be a more personalized experience for their customers or exclusive in-store benefits, like free alterations and product adjustments when purchased or picked up in-store. Extra layers of customer service can go a long way toward enhancing the overall shopping experience.
Individual Shoppers
Shoppers need to be aware of new trends and technologies. With retailers becoming increasingly bold and intrusive in their advertising efforts, shoppers need to know when they are being advertised to subconsciously and when advertisements are useful and relevant. Don’t spend money you cannot afford on products you had no intention of buying.
Another way individual shoppers can embrace the future of retail is by being more conscious of pricing. There has never been more transparency when comparing prices for retail goods, as almost every brand and retailer has their current prices published on their online store and social media channels.
When shopping in-store or online, shoppers should quickly compare prices to those the competition offers. Some retailers will even offer price matching, so you can secure the same price another retailer offers.
There are even online price-matching apps, like PayPal’s Honey and ShopSavvy, which automatically scan the internet to ensure you pay the best possible price for an item you have added to your cart. Some will also automatically try discount and promo codes for you, ensuring you do not miss out on a deal.
To adapt, shoppers need to be more conscious than ever about subliminal advertising and the risk of unnecessary overspending.
Final Words
It has never been easier for retailers to reach shoppers. An estimated 2.14 billion people shop online worldwide, including 70 percent of Americans. Online shopping and e-commerce are not showing any signs of slowing down.
This trend will continue in the future, as well as online advertising efforts, primarily through social media channels. While the emergence of online shopping has significantly altered the shopping experience and the entire retail industry, it has also presented new and exciting opportunities for smaller brands and businesses.
It is now easy and affordable for small start-up brands to create online stores, advertise through social media, and maybe even compete with much more established brands and retailers. While the future of retail will undoubtedly alter today’s shopping experience, those who stay ahead of trends and embrace new technology will flourish.
To learn more about how new technologies are already beginning to reshape our world, we recommend reading Smart Cities Technology – A Guide to the Latest Innovations.