- While 2015 was dominated by omnichannel retailing and the digital wallet, retailers are now looking at speedy delivery, beacons, RFID tags and other emerging technologies in 2016.
- ROI is a key factor in the deployment of these innovations, but these technologies are also focused on improving customer satisfaction, especially at a time when retailers, from e-commerce to brick-and-mortar, are losing ground on the biggest disrupter of all: Amazon.
Below, we take a look at eight retail technologies that companies have utilized in 2016.
1. RFID tags
- RFID, or radio-frequency identification, is an inventory tool that more and more retailers have unleashed this year.
- Spanish apparel and accessories retailer Zara began utilizing RFID tags in certain locations in 2014 and plans to complete implementation in all stores by the end of this year.
- While other retailers like Wal-Mart and J.C. Penney initially failed at wide-scale RFID use, Zara made the project feasible by placing the RFID chips in plastic security tags, which are removed at the point of sale and can be reused.
2. Inventory software
- Retail businesses should keep an eye out for new platforms to turn over inventory more effectively and efficiently. Retailers are always concerned with inventory since that is where their working capital gets tied up. Daily deal and flash sale sites offer one way for retailers to quickly liquidate excess goods.
- Another option is INTURN, a software solution that eliminates the need for retailers to email inventory spreadsheets to each prospective buyer. Instead, buyers and sellers can use the software to view excess inventory, set parameters for the sale, and negotiate offers.
3. Beacons
- More companies are expected to deploy beacon technology in their brick-and-mortar stores as smartphones play an increasingly crucial role in the shopping experience.
- Retailers use location-based beacons with Bluetooth Low Energy to communicate with shoppers who have the store’s mobile app and walk near a beacon placed in the store.
- They can provide store maps, alert customers to special deals, offer product information or remind them how many loyalty points they have.
- A July 2015 report from BI Intelligence estimated beacon technology would directly influence some $40 billion in U.S. retail sales in 2016, a 10-fold increase from its 2015 projection. Macy’s, Lord & Taylor, Urban Outfitters, and Kohl’s are among major stores that use beacons.
4. No-fuss e-gifting
- There is a huge market for eliminating the hassle involved with gift giving. For example, Loop Commerce offers an e-gifting service where a customer can select a present for a friend, such as a sweater, but leave it up to the recipient to confirm the size, color, and where to ship it.
- The recipient receives an email and completes the purchase online. That way, gift-givers can still bestow personal items like clothing, shoes, or makeup even if they don’t know the recipient’s mailing address or other details.
5. Easier store pickup
- Apps like Curbside take the convenience of “buy online, pick up in-store” to the next level. Consumers can purchase products from Target or other local stores on their mobile phone and pick up the items later the same day.
- Curbside can track a user’s location so an employee can have the package ready to go when the customer pulls into the parking lot. The service is available at certain stores in Chicago, the San Francisco Bay Area, Philadelphia, Los Angeles, and the New York/New Jersey area.
6. Faster delivery
- 2016 saw an increased focus on technology that enables shorter delivery windows for online and mobile purchases.
- Amazon offers free same-day delivery on certain items to Prime members in 16 metro areas.
- There is also Amazon Prime Now, a standalone mobile app that offers free two-hour delivery or $7.99 one-hour delivery of orders from Amazon and local stores and restaurants in certain metro areas.Instacart, Google Express, and others also are expanding their offerings and service areas.
7. Visual product search
- More retailers are getting into the item recognition space with app features from tech companies like Slyce Inc., which allows shoppers to take photos of a product and then find similar items from that particular store.
- Neiman Marcus, Urban Outfitters, J.C. Penney and Home Depot have all contracted with Slyce.
8. Magic mirrors and smart fitting rooms
- Touchscreen mirrors that allow shoppers to select different fitting room lighting, request different colors or sizes and keep track of what they’ve tried on.
- Polo Ralph Lauren in November unveiled interactive dressing room mirrors at its flagship store in New York with plans to install them in additional locations soon.
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