As Retail Doubles Down on Technology in 2023, Stretched IT Teams Will Demand More from Their Network
Aruba, a Hewlett Packard Enterprise company, shared insights at NRF 2023 on how retailers will adopt technology to enhance customer experiences in the coming year. As consumer preferences shift, retailers must create personalized shopping experiences while managing operational costs. The report highlights five key trends:
- Immersive in-store experiences via AR/VR.
- Diverse delivery options, including hybrid models.
- Smarter in-store technologies for efficiency.
- Intelligent inventory management using predictive tech.
- Livestreaming to connect with customers.
Retailers are encouraged to consider Network-as-a-Service (NaaS) as an agile solution to support these innovations.
- Predicted growth in immersive technology to enhance customer experience.
- Trend towards diversified delivery options aligns with consumer demand.
- In-store technology advancements could lead to operational efficiencies.
- Increased use of predictive analytics for inventory management may drive sales.
- Livestreaming initiatives could enhance customer engagement.
- None.
New predictions from
Against an uncertain macro environment, and growing consumer desire for ever more personalized brand treatment, customers are going to be increasingly selective with how and where they spend their money in 2023. As retailers compete for wallet share, they will have to deliver flexible, tailored shopping experiences to attract new footfall and keep both online and in-store customers loyal. This will put a heavy burden on IT teams to support the pace of technological change and deliver the seamless running of operations.
To help retailers as they enter the new year,
1. RETAILERS BRING IMMERSIVE DIGITAL EXPERIENCES TO IN-STORE SHOPPERS
As retailers fight to re-engage customers with physical spaces, they will look to invest more in technologies to deepen and differentiate the immersive experience of in-store shopping trips. Expect AR and VR that allows shoppers to get a better feel for how products will fit into their lives before they reach the point of sale to become fully embedded in a retailer’s user experience (UX).
2. DELIVERY OPTIONS BECOME MORE DISPARATE AND DIVERSIFIED
Consumer expectations for on-demand, time-shifted, and location-flexible delivery options are rapidly growing. Retailers and grocers will take an increasingly hybrid approach to fulfilling orders, offering up traditional delivery solutions alongside dark stores, micro-fulfilment centers, grab and go “pop-ups”, and on-demand couriers. The use of enhanced geolocation services and even mobile stores will give retailers the chance to bring the point of sale directly to the consumer’s home or place of work.
3. IN-STORE SMARTENS UP TO DRIVE DELIGHT AND EFFICIENCY
With e-commerce offering ever more sophisticated competition, in-store spaces will be redefined to not only focus on enhanced customer satisfaction and personalization, but also more efficient business operations. Physical stores will become more connected, with innovations like smart fitting rooms and cashierless exits serving to delight customers, while IoT sensor capabilities provide real-time insights to support operational savings and sustainability ambitions.
4. INTELLIGENT INVENTORY INSIGHTS WILL MAINTAIN CONSUMER LOYALTY
In today's age of instant gratification, consumers expect retailers to deliver what they want, when they want it – with any deviation from what has been promised not tolerated. Expect a surge in automation and predictive technologies to help more accurately track inventory and meet consumer demands in real-time. Smart robots deployed in warehouses and distribution centers will also make operations more intelligent, shifting made-to-order retailing into the mainstream, and reducing waste and excess inventory as a result.
5. SHOWROOMING TURNS TO STREAMING
Livestreaming from physical stores will become more commonplace as brands look to create the next stage of showrooming, giving customers a glimpse behind the scenes. Delivering such experiences will help feed consumer appetite for a local touch and allow retailers to make the most of their remaining physical spaces.
“Whether it’s immersive experiences, livestreaming, or new delivery methods, the technology requirements for retailers are becoming denser and more complex as they continue to battle for business. And while vital, new and modern technology will be dependent on having the right infrastructure to support it,” said
“To achieve this, retailers need to reconsider their network approach – looking at alternative consumption models like
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clare.loxley@hpe.com
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