Technology is radically changing the face of retail and the pace of change is getting quicker by the day. Head of retail management software and systems provider, predicts what he thinks the future holds retail technology in the New Year

Technology is radically changing the face of retail and the pace of change is getting quicker by the day. Head of retail management software and systems provider, predicts what he thinks the future holds retail technology in the New Year

The consumer of 2011 will be best known for their ability to call the shots, having more control over their shopping experience than ever before, according to Scott Storey, managing director of CTS Retail.

He said they will decide how, where and when they want to shop and will expect a higher standard of shopping experience to be provided by retailers across a variety of sales channels.

So how will the retail industry evolve to keep up with an increasingly tuned-in customer? Here Storey’s my top technology predictions for 2011.

Online stores will gain greater share of sales

“With reports showing that more customers than ever are turning to the web as their destination of choice, large High Street retailers through to small independent chains will need to embrace the online world by having an effective and functional online webstore,” Storey said.

“Electronic point-of-sale (EPoS) solutions that include embedded webstore technology mean that in 2011, retailers can have at their disposal everything they need to reach a wider online audience, sell more effectively to existing customers and keep online inventory information up-to-date.”

But the High Street store is here stay

“Despite the growing demand for the online shopping experience, the High Street store is certainly not dead,” he continued. “Moreover, customers want to engage with a hybrid retailer that is able to combine the experiential benefits of the bricks and mortar store experience with the flexibility and 24-hour nature of the web.

“Today’s consumer is informed and has access to various sources of information via the internet to research and buy products, but the bricks and mortar store will always exist. Having researched the item customers prefer to ‘want it now’ so whether this is reserve and collect or just drive to the store and purchase, immediacy will drive bricks and mortar sales. Also, some products are very personal and therefore the product’s condition needs to be seen and considered in person even if it has been researched previously. And speaking to a member of staff in a store will still instil confidence in the customer purchase.”

Multichannel integration will remain king

“In the current environment, a seamless integration between online and bricks and mortar offerings is key to building customer loyalty and truly understanding your target audience. If your customer does not receive the same level of experience through the various shopping channels available, then the retailer runs a significant risk of losing market share.

“Retailers will therefore focus their efforts in 2011 on striving to consolidate systems and maximise return on investment through the integrated use of all sales channels. Tesco, Next and Homebase are all examples of retailers who have truly embraced the cross-channel service model and are clearly reaping the benefits. Retailers will continue to realise the benefits of integrating online and offline sales and creating a single customer experience, regardless of which channel the customer chooses to use and will look to invest in solutions in 2011, which enable seamless integration of multichannel and multi-store sales,” added Storey.

Contactless will attract early adopters

Contactless payments are the next step in electronic payments revolutionising the way consumers will interact with retailers, according to Storey. “Contactless payments will enable goods of £10 or under to be purchased using ‘touch n go’ credit or debit cards,” he said.

“Some experts believe that by the end of 2011, 70% of debit cards and 45% of credit cards are expected to be contactless-enabled in the UK. Personally, I do not see the majority of retailers adopting contactless payment systems for at least three to five years. The retail world is now very consumer led and delivering the complete user experience across all channels will be the primary driver for the next 12 -18 months.”

Capital investment under scrutiny

According to new reports, retail chains around the world have changed their main focus in the last 12 months and are now investing heavily in inventory and technology. The 2010 Global Retail chief financial officer survey by consultancy PricewaterhouseCoopers found that retailers are now typically focusing on improving strategy execution and merchandising effectiveness.

“Other reports have also shown that investment in ecommerce is the leading priority for non-food retailers, with many now planning to replace ageing infrastructure that is deemed no longer fit for purpose, with store management systems a particular target for investment,” concluded Storey.