Retail technology trends: reshaping the future

The digital transformation of the retail industry continues to advance, reshaping the entire shopping experience as it goes. Not even a pandemic and its subsequent economic effects could stop it, thanks to several technological advances and trends that are redefining what retail companies can be and do.

#1 Demand Forecasting Through Machine Learning

Artificial intelligence has already established itself as a great ally for all types of industries – and the retail sector could not be an exception. There are many ways AI can help a retailer, but the one that is emerging with the most power is machine learning to help with demand forecasting. This means using sophisticated AI-based algorithms to predict future fluctuations in customer demand.

These results are possible thanks to the combination of data from various sources, including POS information, market data, economic factors and seasonal factors, among others. By analyzing all of this with machine learning, companies can better predict the direction of customer demand and identify patterns to make more informed decisions.

With these insights, retailers can better plan for the future by optimizing sourcing, logistics and manufacturing processes. These insights also work great to create marketing campaigns that meet changing demands, encouraging customers to increase their purchasing spend.

#2: Increasingly Personalized Shopping Experiences

For some time now, the world has been immersed in a trend that leads to more personalized experiences. This is especially true for the retail sector. Its objective is to provide a tailored experience for each of its customers, meeting their particular needs and desires and trying to anticipate their needs. Demand forecasting through machine learning is just one expression of this trend.

The other dominant expression of customization in the retail sector is the recommendation of products and services. Again, machine learning is responsible for analyzing a set of variables to provide suggestions based on each consumer's habits, preferences and interests. This process allows algorithms to create increasingly sophisticated shopping profiles that offer better, more personalized offers over time.

The personalization of the retail experience exceeds the product recommendation engines common in most online retailers. It also encompasses chatbots and intelligent assistants that provide customer service and support on e-commerce platforms and websites.

#3: Immersive Shopping Through AR

One of the biggest challenges of online shopping has always been the impossibility of trying products before buying them. Although this is not possible with certain products, the truth is that technology is bringing a solution to some cases that will certainly increase the popularity of the online shopping experience. The name of this solution? Augmented reality.

Through the use of AR, retail brands can offer their customers the ability to check out products in a more immersive and realistic way than they could ever do with photos. There are already many examples available, with some retailers offering apps where consumers can see what a particular piece of furniture would look like in their homes or what their rooms would look like with a specific paint color.

The best thing about this trend is that an experienced retail software development team can work on an AR solution that can run on many modern smartphones. Therefore, retailers of all sizes can now join this trend that promises to revolutionize the way we shop online.

#4 Seamless Store and Ecommerce Integration

When people think about shopping online, they think about completing the entire transaction through an e-commerce platform and then waiting for the product to arrive. However, this is just one of the possibilities that online retail can offer. There is also the possibility of moving from the online platform to the real store (and vice versa) to complete the transaction.

This means more than just “buy online and pick up in store.” It involves using the entire retail ecosystem to synchronize online and offline transactions. It means sending offers to physical store visitors that can be completed online, a combination of data from online and offline channels for better customer profiling and better inventory tracking across the system.

This integration provides excellent benefits for both customers and retailers. The former can be sure that they will always have the most personalized shopping experience, allowing them to access exclusive promotions tailored to their interests. The latter can maximize the number of transactions by multiplying the number of micro-moments in which customers have purchase intention.

#5 Cashierless stores

Some time ago, Amazon surprised the entire world by introducing Amazon Go. In this physical store without a cashier, people could go, pick up the products they wanted and leave without having to interact with anyone.

The store is equipped with sensors and deep learning algorithms that scan the products each customer picks up and add them to a virtual cart associated with an Amazon account. As soon as the customer leaves the store, the list is closed and the total is debited to the associated account.

This trend provides customers who frequent physical stores with a greater level of comfort, as they do not need to carry cash or cards, while at the same time freeing them from long queues at cash registers. This model can be developed by including an app that can read barcodes and QR codes, so people don't even need to pick up things to find out more about them (like price, ingredients, origin, and more).

#6: Voice Shopping

People are now used to having Siri, Alexa, Google Home and other virtual assistants to help them with everything from checking the weather to listening to music. It's only natural, then, that these voice assistants also offer customers the ability to buy things just by talking.

Thus, voice shopping allows the customer to talk to a virtual assistant and search for products that can later be added to a virtual cart. After completing the cart, the customer needs to place the order and wait for the items to be delivered by the retailer. This is yet another way in which technology can improve customer comfort.

Naturally, there are still some challenges with this type of shopping, as we all like to look at things before buying them. However, voice shopping appears to have gotten off to a good start with retailers like Walmart allowing customers to buy groceries and other items just using their voice.

The future of retail is already here

These are just some of the technology trends that are already reshaping the retail sector. As we move forward, the technological offering relating to shopping experiences will become more sophisticated and refined, thanks to the growing presence of technologies such as AI, AR, Internet of Things and even blockchain. It's only a matter of time before our shopping experiences are completely revolutionized.