Despite long-standing predictions that digital commerce would render physical stores obsolete, brick-and-mortar retail remains a vital component of modern commerce. While ecommerce has reshaped how consumers discover and purchase products, physical locations continue to play a critical role in millions of customer journeys.
To stay relevant in an increasingly digital landscape, however, physical stores must evolve. This means becoming more connected, data-driven, and seamlessly integrated into omnichannel strategies that bridge the gap between online and offline experiences.
“You might start your journey online but then finish it off in-store – and you should be able to switch from one mode to the other seamlessly,” says Amit Mehrotra, vice-president and head of UK & Ireland at Tata Communications, a leading global communications technology player that powers a hyperconnected ecosystem for enterprises, including omnichannel retail experiences.
Modern consumers also expect the same personalisation and convenience they enjoy online while shopping in-store, as well as consistent branding across physical and digital channels. Indeed, the barriers between digital and physical retail experiences are becoming increasingly blurred.
Consumers who start their journey online might receive tailored offers on their smartphones as they walk past a store, for example, followed by an experience underpinned by the latest digital technologies upon entering it.
“If you can deliver a personalised in-store experience where you have more product information, you’re able to see online reviews…where you might see discounts as a frequent visitor to the store – that results in a great customer experience and more share of the wallet for the retailer.”
Indeed, research by McKinsey shows that personalisation can deliver a brick and mortar revenue lift of 10–20%, for example, with 72% of shoppers expecting the businesses they buy from to recognise them as individuals and know their interests.
Technologies like in-store beacons can support these personalised experiences by pushing relevant information and discounts to customer smartphones. Leading retailers are also experimenting with everything from digital signage that adapts content based on customer demographics to smart mirrors for virtual try-ons of clothing in-store. This could also have a significant impact on revenue, with approximately 65.6% of consumers reporting that the presence of digital in-store media formats increases their spending.
Smart shelves that use weight sensors and RFID to track inventory in real-time, preventing costly stockouts and improving operational efficiency, are another promising technology. Endless aisle solutions also allow in-store ordering of out-of-stock items, while unified customer profiles are helping retailers to recognise shoppers across both digital and physical channels.
Smarter networks
These cutting-edge solutions and experiences can be challenging to implement successfully. Autonomous checkout, for example, demands precise, real-time systems to detect scanned items and verify purchases. Gaps in network coverage, known as ‘dark spots,’ can create major vulnerabilities.
“There’s the potential for a lot of fraud, a lot of issues,” says Mehrotra. “Different retailers are taking different approaches to the problem.”
Some are using cameras and computer vision to both prevent theft and manage queues and inventory. But regardless of which approach they take, retail leaders that want to implement frictionless checkout experiences – and indeed any other promising in-store technology – must ensure that it rests upon reliable, secure and scalable network infrastructure.
To stay relevant in an increasingly digital landscape, physical stores must evolve
Modern infrastructure also supports the hyper-connectivity essential for delivering great omnichannel experiences. “When we talk about hyper-connectivity, we mean always-on, seamless collaboration in real-time,” Mehrotra explains. “As long as the connectivity provides you with all three elements, then you’ll have a hyperconnected ecosystem.”
Some retailers are exploring hybrid connectivity models that combine Wi-Fi with 5G to balance performance and cost. Indeed, reliable WiFi is still essential for delivering real-time information on products, promotions and specs, for example. But whichever approach they take, compute capabilities ideally need to be as close to the store floor as possible – which is where edge computing comes in.
Rather than sending data back and forth to a central cloud, edge systems process information locally. This means smart mirrors can respond instantly, autonomous systems can detect motion in real-time, and checkouts can still function well even at peak times.
“You see a lot of investment going into edge computing, as you don’t have to take everything back to the cloud,” says Mehrotra. “That local compute capability allows you to be more contextual for the customer in real-time.”
Retail leaders will need strong change management processes to get the most from their network infrastructure and smart store technologies. Indeed, well-trained staff who can quickly access product information, inventory levels and customer data are a vital part of personalised in-store experiences.
“For any change to happen effectively, it’s important that you have strong sponsorship at the executive level,” says Mehrotra. “Some of the most successful retailers are also the ones where the execs are close to the ground…where it is almost mandatory that you spend one day of your working week in the store, living and breathing it. That’s the best thing you can do to deliver hands-on change.”
There are other challenges when it comes to successfully transforming stores. The cost of integrating newer technologies with legacy systems is often underestimated, for instance. Data may also need to be cleaned up for use by AI, and strong cybersecurity measures are of course a vital part of any hyperconnected ecosystem.
“In terms of making the switch from one channel to the other, the contact centre also has a strong role to play,” Mehrotra notes. AI systems that can understand and respond to customer sentiment in real-time, across voice, video and chat, can further enhance customer experiences, for example. Along with other emerging technologies like digital twins and in-store biometric payments, this will only add to the need for intelligent, always-on hyper-connectivity.
An experienced partner like Tata Communications can help retail leaders successfully navigate all of the challenges around smart stores and seamless omnichannel experiences. It provides both the network infrastructure and deep industry expertise needed to connect the entire retail ecosystem, as well as securely deploy data-intensive in-store technologies and unify customer profiles across channels.
The result is an omnichannel shopping experience where every interaction feels personal, every journey is seamless and every visit to the store is supported by real-time insights. Retailers that achieve this will soon find that the physical store isn’t on the way out. In fact, it may just be entering its prime.
To find out more please visit tatacommunications.com
Despite long-standing predictions that digital commerce would render physical stores obsolete, brick-and-mortar retail remains a vital component of modern commerce. While ecommerce has reshaped how consumers discover and purchase products, physical locations continue to play a critical role in millions of customer journeys.
To stay relevant in an increasingly digital landscape, however, physical stores must evolve. This means becoming more connected, data-driven, and seamlessly integrated into omnichannel strategies that bridge the gap between online and offline experiences.
"You might start your journey online but then finish it off in-store – and you should be able to switch from one mode to the other seamlessly," says Amit Mehrotra, vice-president and head of UK & Ireland at Tata Communications, a leading global communications technology player that powers a hyperconnected ecosystem for enterprises, including omnichannel retail experiences.
