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Retail Business Review | Tuesday, March 15, 2022
Ago the 20th century, store owners and sales executives had less and less influence on the functioning of the store, but AI can reverse this trend and empower retailers.
The retail landscape has undergone a paradigm shift since the early 20th century, presenting unending design progeny each season. Online has been the industry's latest achievement. Shopping is made fun and easy, but mimicking the retail experience in the digital space has presented challenges.
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The new wave of online retail has disturbed many physical retailers; the struggle to compete on price, assortment, and convenience has become a staple. Recently, AI-based advances in the e-commerce industry have also offered refuge in brick-and-mortar stores. It is required to understand the retail brands before determining the applications of AI. The three types of retailers who have caught your eye from being under pressure are:
1. Value-based
2. Experiential
3. Convenience
How can AI influence a transformation over the three critical areas of value, experiential, and convenience retailing?
For those retailers concentrated on the value, AI can enable leaner operating models to realize significant efficiencies. ML and process automation will perform as the main levers of transformation in value retail by providing continuously cumulative, incremental advantages that have a last impact over time.
Speaking of experiential retailers, AI will assist in the delivery of more personalized and immersive retail experiences. By integrating AR and deep learning, newer applications can be unlocked to enhance the in-store journey by processing and interpreting images and texts. Developments like smart mirrors, which assist in trying on the designs digitally with the help of AR, have seen success in the early stages.
As convenience retail spaces encourage consumer friendliness, AI has already craved a mark in this area. Many convenience stores have already installed self-checkout counters and a smart camera system that interprets images captured, predicting the checkout total of the customers. AI also possesses the potential to assist convenience stores in using the limited space available to them flexibly.
On a fundamental level, the most crucial decision a retailer inconvenience needs to make is the location of their stores. Recently, the prediction of revenues for new areas has become more comfortable with AI offerings. It can potentially collect new data sources by segregating the local drivers for store performance.
Regardless of what retailers focus on, whether value, experience, or convenience, AI can provide them with something to make them meet the customers. It assists retailers in executing the systems effectively and will transform the way the store owners work with data.
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