With 2024 just around the corner, we caught up with Sam Panzer, Director of Industry Strategy at Talon.One, and Simon Suarez, Director of Enterprise Architecture at AbsoluteLabs, to hear what they see as the biggest opportunities for retailers going into the new year: which technologies in retail they're happy to ditch, and which brands are currently killing it.
What are the latest retail technology trends you're seeing in brick-and-mortar shops?
AbsoluteLabs: Brick-and-mortar shops are no longer just a sales channel, but a curated space to showcase products and enable customer interaction. According to retail technology expo, the rise of true mobile POS (enabled by new features like Tap to Pay on the Apple iPhone) is also changing the way retailers lay out their shops, as there is no longer a need for static, bulky checkout areas. Instead, this is providing more room for visual merchandisers to be creative and hopefully find space for innovative and exciting customer-facing technology. This is also in line with Forrester's Predictions 2024: Payments Report
which states that "the businesses that will play a role in 2024 will be those that offer more value or utility around payments - those that recognise the payment experience rather than the payment itself".
What's an amazing experience you've had recently with retail innovation? Who's killing it at the moment?
Sam: I love what Harry Rosen, a luxury Canadian menswear shop, has done, namely digitising the one-to-one customer advisor relationship they are known for. For years, shop employees would select products based on previous purchase history and preferences before a customer visited the shop.
According to retail technology expo, employees are now replicating this in-store experience online. Text has become the first point of contact for employees to communicate with customers and learn about their needs, preferences and sizes. Using an app on their phones, employees can create complete looks for customers and present each look on a personalised web page. The app connects to Harry Rosen's CRM, real-time inventory feedback, and an AI-based product recommendation system - a great example of how the brand is redesigning its technology stack to deliver a better omnichannel experience.
Absolute Labs: we're biased, but we have to applaud athletic apparel retailer Footasylum here for its frictionless in-store payments - a project we recently partnered with NewStore and Talon.One and launched in less than 90 days. As part of the project, customers can now pay for products using NewStore-enabled iPhones carried by sales associates, enabling sales associates to reduce the number of devices they carry in the shop, simplifying the customer journey while increasing security. Whilst the technical aspects of the project were no small task, the success was certainly felt during shop visits and the sales staff were very appreciative of the work that had been done. They embraced the change, which is not always common when replacing a system that is the user's only point of contact. Paws. One of them is an important part of this puzzle, and although not consumer-facing, it has been initiated behind the scenes.
Who is killing it at the moment? Fast fashion brands and mid-tier luxury brands as one. With the recent resurgence of the new crown epidemic and huge uncertainty across the retail sector, it's been amazing to see the resilience of our customers and the innovative and cost-effective ways to disrupt and reinvigorate their businesses.
What's your pet peeve when it comes to retail technology or outdated retail practices you'd like to see behind it?
AbsoluteLabs: For many retailers, the inventory process is still an antiquated scan-and-hang process. It would be great to look for a model where RFID-based receiving and inventory counting is commonplace everywhere. Another vexing issue is the disconnected and disjointed nature of cross-channel loyalty programmes and promotions, especially because consumers want the same deals no matter where they choose to shop.
What do you see as the biggest opportunity for transformation within retail shops in 2024?
Sam: I think there's a big opportunity for retailers to use their point-of-sale systems as a driver for data collection opportunities or loyalty programme sign-ups. I recently returned to the US and every local coffee shop and restaurant is running Square, Toast or similar lightweight POS with a clear process to sign up for a newsletter (usually with a coupon attached if I do so) or sign up for a loyalty programme.
(source: https://www.10100.com/article/35555)