Europe Catching Up to Retail Technology Revolution

Rhea-AI Summary

ISG Provider Lens™ report reveals that European retailers are embracing digital transformation to enhance omnichannel experiences following changing consumer behavior post-COVID-19. However, they still lag behind their counterparts in the U.S. and China. Sectors like grocery and fashion are leading in implementing new technologies. The report emphasizes the importance of resilient supply chains and highlights that retailers are increasingly using data to personalize marketing strategies. Major players like Accenture and Capgemini are recognized as leaders in retail services across the region.

Positive

• European retailers are rapidly adopting digital transformation strategies to support e-commerce.
• Significant investment in new technologies for grocery, fashion, and apparel sectors.
• Retailers are utilizing data to enhance customer loyalty through personalized marketing.

Negative

• European retailers are still lagging behind U.S. and Chinese counterparts in digital capabilities.

Digital transformation allows leading European retailers to create unified omnichannel experiences, ISG Provider Lens™ report says

LONDON--(BUSINESS WIRE)-- European retailers are modernizing their IT capabilities to adapt to changing consumer behavior in the wake of the COVID-19 pandemic, but still lag behind retailers in the U.S. and other markets, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2022 ISG Provider Lens™ Retail Services report for Europe and the U.K. finds companies in the region are engaging in digital transformation to support growing use of e-commerce and demand for channel-agnostic shopping experiences. The region is still catching up with markets such as the U.S. and China, with retailers based in northern and western Europe moving more quickly than those in eastern European markets, ISG says.

“More European retailers are creating new sales channels, and we expect this trend to accelerate,” said Sunder Pillai, director and leader, Retail and CPG, at ISG. “Service providers are helping companies create a unified shopping experience across all channels.”

The grocery, fashion and apparel sectors are implementing new retail technologies most aggressively, the report says. Digital transformation allows them to launch popular new shopping experiences incorporating social commerce, voice commerce, curbside pickup and home delivery. European retailers are also updating the technology in their brick-and-mortar stores, where customers have started to return, expecting new features such as cashless and checkout-free shopping.

Digital transformation and a unified customer experience require resilient supply chains, so retailers are working with service providers to integrate supply-chain systems for a free flow of information, ISG says. Europe has fewer warehouses and distribution centers than other regions, so service providers are helping retailers use stores as mini fulfillment centers for digital orders.

The growth of digital business is also generating unprecedented amounts of localized data on customer behavior and preferences. Retailers are consolidating this information in structured data platforms that allow them to build a unique profile for each customer.

“With help from service providers, companies are ready to roll out more personalized marketing campaigns that increase loyalty,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research.

The report also examines other trends among European retailers, including cloud migration and record-setting growth in the adoption of managed services.

The 2022 ISG Provider Lens™ Retail Services report for Europe and the U.K. evaluates the capabilities of 23 providers across three quadrants: CX Transformation Services, Platform Migration Services and Managed Services.

The report names Accenture, Capgemini, Cognizant, HCL, Infosys, TCS and Wipro as Leaders in all three quadrants.

The 2022 ISG Provider Lens™ Retail Services report for Europe and the U.K. is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 800 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220624005025/en/

Press Contacts:

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Kate Hartley, Carrot Communications for ISG

+44 (0)20 3457 6403

kate.hartley@carrotcomms.co.uk

Source: Information Services Group, Inc.

FAQ

What does the ISG Provider Lens report reveal about European retailers?

The ISG Provider Lens report highlights that European retailers are modernizing their IT capabilities to enhance omnichannel experiences but are still behind U.S. and Chinese retailers.

Which sectors are leading digital transformation among European retailers?

The grocery, fashion, and apparel sectors are the most aggressive in implementing new retail technologies according to the report.

Who are the leaders in retail services as per the ISG report?

The report names Accenture, Capgemini, Cognizant, HCL, Infosys, TCS, and Wipro as leaders in retail services across all evaluated quadrants.

What are the key trends in European retail digital transformation?

Key trends include the integration of supply-chain systems, use of localized customer data for marketing, and adoption of new retail technologies.

What impact does digital transformation have on customer experience according to ISG?

Digital transformation facilitates a unified shopping experience across all channels, enhancing customer engagement and satisfaction.