Use of technology from the supply chain to delivery is transforming retail structures and shopper experiences, writes Managing Director Deborah Weinswig
Retailers increasingly will incorporate end-to-end digitalization, including the use of radio-frequency identification (RFID) and blockchain technology to speed the supply chain, in-store price tags that can be changed with a click, mobile technology for store associates, self-checkouts and new equipment such as drones to expedite package delivery, the report says. The trend will continue beyond 2017, writes author Deborah Weinswig, Managing Director of Fung Global Retail & Technology.
“As 2017 is expected to bring a more uncertain global trade environment, we expect retailers to explore ways to create speed and agility in their supply chains,” Weinswig writes. “[Meanwhile,] we expect retailers to collaborate more, use more technology and adopt new delivery models as they cater to consumers’ near-insatiable demand for immediacy and convenience.”
Weinswig discussed the results of the international think tank’s latest research report, released today in conjunction with the National Retail Federation’s Big Show, as part of the free-flowing discussion of “Retail Disrupted: Hear from the Retail Experts,” at the luncheon. Also leading the discussion was Joe Jensen, Vice President and General Manager Retail Solutions of Intel Corp. The event began with a discussion of “Retail Disrupted: A Global Perspective from 300 Retail CEOs” by Lee Gill, Group Vice President, Global Retail Strategy for, JDA.
Among other trends discussed in the report were: expected rapid growth in online grocery in countries as far afield as the U.S. and China; the revival of the wearables industry with specialized devices such as Snap’s Spectacles camera glasses; and ongoing development of marketplace e-commerce formats (third-party sellers using conduits such as Amazon) in the United States.
Faced with growing competition from online (such as Amazon’s entry into apparel) and entrants from overseas (including German grocers Aldi and Lidl), U.S. retailers must be creative in controlling their brand experience (including using popup stores, mobile trucks and temporary spaces), the report adds. Those that cannot meet the challenge will see more consolidation in an overmalled, overstored environment.
“We think that U.S. retailers, particularly department store and specialty store operators, are likely to close more stores in 2017 than they have in the past, and that the bulk of the closures will be mall locations,” Weinswig writes.
To learn more about the joint solutions being offered by Intel and JDA to help combat these challenges and profit from today’s digitalization, retailers can learn more about store optimization solutions offered by these companies in JDA booth 2817 and Intel booth 3125.
The report is available here. Previous reports issued by Fung Global Retail & Technology include: “Online Grocery Series: France–Where Click-and-Drive is King,” “The UK Apparel Handbook–2017 Outlook,” and “Deep Dive: International Retailer’s Guide to Cross-Border E-Commerce in China.” Fung Global Retail & Technology’s reports and analyses can be found at www.FungGlobalRetailTech.com and www.deborahweinswig.com. Subscribe here to Deborah Weinswig’s daily news and analysis on retail, fashion and technology.
About Fung Global Retail & Technology
Fung Global Retail & Technology is a think tank whose research team, based in New York, London and Hong Kong, follows emerging retail and tech trends, specializing in the ways retail and technology intersect, and in building collaborative communities.
The team, led by Deborah Weinswig, former top Wall Street and retail tech analyst and startup advisor, publishes ongoing thematic and global market research on topics such as the Internet of Things, digital payments, omnichannel retail, luxury and fashion trends and disruptive technologies. Subscribe here for Deborah Weinswig’s analyses of retail, fashion and technology. More information can be found at www.FungGlobalRetailTech.com.