New technology drives big change at retail
Retailers are increasingly using new technology to protect profits and improve store operations. Over the past few years, new innovations in shrink reduction, point-of-sale (POS) payments and customer engagement have changed how many merchants run their stores, Retailing Today reports.
How technology is impacting retail
Loss prevention technology has traditionally been the primary solution merchants have used in the past. Security cameras, alarms, anti-theft tags – these solutions help ensure companies don't lose stock to criminals, which would force them to raise prices for their honest customers. As the news source notes, loss prevention and shrinkage is a $100 billion dollar issue that retailers have tried to address with a variety of technologies.
However, many merchants are using other technologies now as well. For example, American consumers have become obsessed with the prospect of the personalized shopping experience. They want specific items that are tailored to their needs. This extends beyond products as well – Americans are taking to social media as a way to get answers to their problems.
"Customer relationships are shifting towards a one-to-one model instead of a one-to-many approach that was used in the past," the news source explains. "The emergence of trends such as omnichannel retailing gives retailers the opportunity to address the shift and offer their merchandise to shoppers at the moment of interest, and sell at the moment of decision, but it also raises shoppers' expectations with a promise of availability."
Finally, new technology is being applied to the point of sale as well. Contactless credit and debit cards are one such solution that expedite the payment process, meaning consumers are spending less time waiting in line and more time enjoying the shopping experience. Additionally, mobile technologies – both in terms of accepting mobile devices as a payment source and using smartphones and tablets as a point-of-sale terminal – have also created new opportunities for businesses.
Retailers need to consider these new technologies as a way to not only keep pace with but also gain a leg up on their competitors.
"Retailers of all sizes need to capture, interpret, report and intelligently respond to real-time operational data from stores, employees, inventory and shoppers," Retailing Today added. "That data can be collected from existing store systems as well as a number of sensor devices – from traditional EAS tools and newer RFID-enabled solutions, to traffic counting and video analytics."
