Increased use of consumer mobile devices in-store drives retail technology

Retailers across segments are accelerating technology deployment plans to enhance the customer experience and drive operational efficiencies, but there are significant differences between planned technology rollouts in the grocery/general merchandise and specialty/department Store segments, according to the 2022 Connected Retail Experience Study by Incisiv, sponsored by Verizon.

“As more mobile and IoT technology is deployed in stores, it will drive the need for more robust network connectivity,” said Jerri Traflet, managing partner, Global Solutions at Verizon. “It is not surprising that the greatest expected increase in in-store technology — consumer devices — is the No. 1 driver for retailers to consider adopting 5G deployments.”

The study highlights the pressure that store networks will be under as respondents have indicated that customer mobile device usage, the number of technology applications and percentage of technology that will be deployed in the cloud will all increase significantly in the next 12-24 months. This, combined with the fact that less than one-third of retailers are currently satisfied with their application response time and their ability to manage network traffic, shows a clear disconnect when it comes to in-store technologies.

Related:Omnichannel top of mind in grocery retailer technology investment

Key findings of the study include:

While retailers are satisfied with their overall store experience and operations, they are dissatisfied with their store’s digital maturity, according to the study. “There is a disconnect between how retailers assess their overall store experience and their digital store experience,” says the report. “While they are satisfied with their overall store experience and operational efficiency, they don't think their digital experience meets shopper expectations. Over the last 18 months, we've seen a rapid acceleration in shoppers' digital adoption and, consequently, a rapid digital transformation for retailers. We've seen the store experience become more contactless, shopper-associate engagement has become digital and the store's role has evolved to become a hub of omnichannel fulfillment. The store's digital fabric (engagement and operations) needs strengthening because it will be the critical determinant of future performance.”

Related:Wakefern to pilot autonomous store technology

Among retailers:

• 62% are satisfied with their overall store experience

• 66% are satisfied with their store's operational efficiency

• 39% are satisfied with their store’s digital experience

• 47% are satisfied with the effectiveness of their store associates

Overall, Grocery & General Merchandise retailers are less satisfied with their store performance than Specialty & Department Stores. The smallest gap between formats is in store operational efficiency (62% for grocery vs. 70% for specialty). The biggest gap is their satisfaction with the store's digital experience (22% for grocery vs. 55% for specialty). The report notes that the sample's higher percentage of grocery retailers is driving these gaps. “The complex operational challenges faced by grocers during the pandemic and their slower digital adoption are the primary reasons for these gaps in satisfaction,” says the report.

“While it is great to see retailers truly looking at how technology can help them improve customer experiences, operational efficiency, and associate effectiveness, they aren’t as clear on the network requirements to implement these technologies,” said Gaurav Pant, chief insights officer, Incisiv. “We found that priorities are different for Grocery/General Merchandise retailers vs. Specialty/Department Store retailers, but the need for a robust network won’t change.”