The retail sector is experiencing ongoing transformations due to the growing demands of customers and the rapid advancement of new technologies. A quick summary of the forces of change for this sector is as below:

1. “Phygital” Retail: Consumers are demanding unprecedented integration and simplification of their online and in-store buying experience. Hence retailers are designing seamless integration of the online and in-store experience, using data and technology to deliver omnichannel experiences. Subscriptions, partnerships, buy online pick up in-store, quick and simplified returns, personalized shopping and recommendations, intelligent self-checkout, voice ordering, etc. are all seeing different levels of adoption.
2. Technology change from AI, AR, VR, and IOT: Ai-driven AR and VR solutions are seeing increasing traction in helping customers with an immersive experience. These technologies, along with IOT, are also helping retailers streamline their supply chain operations and bring transparency to inventory and shipped customer orders.
3. Insights from Customer and Supply Chain Data: Retailers are creating increasingly sophisticated data and insight solutions using AI and ML to get a better understanding of buying behavior, preferences, demand forecasting, pricing sensitivity and profitability, and micro-targeted sales promotions. All these solutions allow retailers to provide just the right quantity of products at the right location, promoted by the right customer incentives.
4. Importance of Loyalty programs: Repeating customer purchases with a sustained, synergistic relationship between the customer and the retailer has become critical to reducing the cost of new customer acquisition, achieving high brand loyalty, and rewarding and retaining faithful customers. Retailers with dynamic, personalized rewards programs help create a loyal community of customers, reducing advertising and other marketing costs and allowing trial and adoption of new products through targeted test customer panels.
5. Sustainability: Transparent, Equitable, Supply Chains from Cradle to Grave: Sustainability is increasingly becoming a key differentiator and decision criterion for a growing eco-conscious, green customer segment, with tightening of regulations and reporting requirements around the sustainability of how products are manufactured, sold, consumed and disposed of. Increasing focus on equitable supply chains, traceability of emissions, especially Scope 3 emissions, and higher societal expectations of sustainable product use and recycling at the end of life, is driving new market segments and an ecosystem approach for recycling and reuse of discarded, end-of-life products.  

    Please review our solutions and case studies page to see examples of our work in helping our clients navigate these industry transformations.