Retail Tech Fails to Keep Pace with Changing Consumer Habits
A recent study by Retail Systems Research (RSR), sponsored by Jumpmind, Inc., reveals that nearly 75% of consumers believe their shopping habits have changed significantly, but retail technology is not keeping pace.
The report, titled “Why the Retail Store Won’t Survive as a ‘Tech-Free Zone’,” surveyed over 100 U.S.-based retailers and more than 1,100 U.S. shoppers, highlighting the growing divide between consumer expectations and current retail capabilities.
Consumer Expectations
The survey found that 69% of consumers enjoy browsing in stores, yet almost three-quarters acknowledge a significant shift in their shopping methods over the past three years. Notably, 87% of shoppers want the same access to product information in-store as they have online, and 70% appreciate a seamless integration of online and offline shopping experiences. Additionally, consumers value efficiency, with two-thirds expressing a desire to complete their shopping quickly.
Retailers’ Struggle with Technology
Despite these consumer preferences, 36% of fashion and specialty retailers admit their current technology is inadequate for meeting the needs of today’s tech-savvy customers and employees. The report emphasizes the need for retailers to adopt and strategically implement technology to bridge this gap. Brian Kilcourse, Managing Partner at RSR, stated, “Stores simply cannot continue to exist as ‘technology-free zones.’ Retailers must move now to harmonize the physical store with digital channels.”
Operational Challenges and Solutions
The rise of buy-online-pickup-instore (BOPIS) has introduced new tasks for store staff, requiring operational efficiencies to maintain profitability. Half of the surveyed retailers struggle with the additional costs and the need for better-trained employees. Retailers are increasingly recognizing the importance of a store management portal to track in-store events and KPIs, with 65% acknowledging its significance. Moreover, 58% of retailers see “endless aisle and assisted selling” as valuable, while 50% prioritize location-aware promotions.
Investments in in-store fulfilment solutions, real-time cross-channel inventory checks, and mobile point of sale systems are proving beneficial. These tools are helping retailers attract and retain associates by enhancing their ability to interact effectively with customers.
“Shoppers are likely to encounter more tech-friendly options at their doctor’s office than they are at most retail stores, and these consumers are resolute in their message: they want the store experience to level up,” stated Brian Kilcourse, Managing Partner at RSR. “Stores simply cannot continue to exist as ‘technology-free zones.’ Retailers must move now to harmonize the physical store with digital channels to enable access to inventory and customer information across the entire enterprise, and to offer the same level of digital content to consumers in the store as they have during digital shopping, while empowering store associates to be more efficient and able to deliver the type of experiences consumers desire.”
“We are at a critical juncture in retail, where understanding and meeting consumer expectations with the right technology can make the difference between thriving and merely surviving,” stated Joe Corbin, Jumpmind President and CEO. “The research findings are a call to action for retailers to jumpstart their technology initiatives to create the type of in-store shopping experiences that customers and associates value.”
Industry Implications
Retailers aiming to remain competitive must focus on integrating technology to meet consumer expectations and streamline operations. The full report, offering detailed analysis and actionable recommendations, is available for download, providing essential insights for retailers seeking to enhance their in-store experiences.
For further details and access to the complete report, visit: Jumpmind Report.