2. NEED FOR TECHNOLOGY
Earlier Days Number of
Alternatives in each
product was minimal.
So Selection of
product was not a
problem
Retailer used to know his
customers along with his family
members by their first name.
The contact was very personal
and frequent. Thus the retailer
was like a member of the
family.
In the
present day
numerous products to satisfy
specific needs and numerous
brands in each category
the number of customers as
well as the retailers has
increased manifold.
Personal relationship and interaction led shop
loyalty has been replaced with sales
promotions schemes, and purchase scheme
led loyalty.
In this backdrop the business process as well as store management have become
more challenging and complex. With such complexities backed with scarcity of time, it
became important to implement some mechanism. Any such mechanism should not
only save time but should also be accurate. Here comes the role of technology.
3. Large retail chains like Wal Mart have used technology to gain competitive advantage.
Wal Mart has established satellites to track the movement of goods across the entire
supply chain from trucks that carry the goods from vendors to the distribution centers,
the movement of goods across the distribution center and from distribution center to
the stores. This enables these chains to order as per customer requirements and plan
the movement of goods. This helps in reduction of inventories. It also reduces
possibility of stock outs. Wal Mart has also used technology to automate its
warehouses which enables movement of goods across warehouses on conveyer belts
saving on personnel costs and improving speed and efficiency.
1. Mobile upgrades
7 ways Walmart is innovating with technology
New features include integrated store maps, now in 165 locations and rolling out
soon to more stores, according to Mark Matthews, vice president of digital
acceleration. And while the thousands of Walmart stores in the U.S. may appear
identical, particularly supercenters, many are unique in terms of layout and
services offered. Mobile updates will now show shoppers these details, even
allowing them to access available in-store services, make appointments, see if a
movie is available at their local Red Box or rent a carpet cleaner for pickup.
4. 2. Lists
Roughly 80% of shoppers make paper lists before heading to the store, attempts to
translate this to digital tools haven't been widely embraced by shoppers.
3. Returns
Walmart is integrating shopper purchase data into the app so that
both items bought online and in stores can be accessed by the
customer, who can scan a paper receipt to utilize the feature for non-
digital transactions. Shoppers will be able to initiate a return within
the app, selecting an item from this digital history and creating a
barcode on the mobile device. Once at the store, they can go to a
designated area at the customer service counter, present the code to
be scanned and simply drop off the return. The customer then gets a
message that the return was received.
4. Robots
Restocking shelves, finding and returning misplaced products, and
tracking inventory levels are among the most time-consuming tasks at
any retail store. Walmart is now using robots to facilitate the process.
A roving robot from Bossa Nova Robotics traverses the store
collecting information, making sure pricing is up to date and shelf tags
are accurate, identifying out of stocks and keeping track of overstock
items that are now kept on the top shelf to reduce backroom trips for
inventory replenishment.
5. 5. Associates
Walmart is laser-focused this year on improving the work experience for associates, New
mobile devices are paired with information from the Bossa Nova robot, which transmits a
to-do list to employees based on its finding. The robot takes photos, points out issues and
precisely identifies the location and item to move or restock.
Walmart is using virtual reality to improve training programs and there's even a video game
that uses avatars in simulated experiences to accomplish work-related tasks and earn
rewards.
6. Automation
In the back room, Walmart has automated the process of unloading trucks and sorting
inventory — a task so disliked the company could hardly keep associates in the role. The
aptly named "Fast Unloader" can move a full trailer of merchandise along a conveyer belt,
sort the items and get them to carts for shelf replenishment in a fraction of the time it
took by hand.
7. Online
Then there's Jetblack, Walmart's new concierge shopping service and the first
business to come out of its Store No.8 incubator. The program uses AI backed by
humans to deliver a curated assortment of product recommendations to its members
from Walmart, Jet and a selection of other retail partners including brands like
Pottery Barn and the Gap. Jetblack is focused on high-end consumers in New York
City. Jetblack enabled customers to text almost any shopping request — including
food and groceries — for delivery the same day or the next day for no extra charge.
6.
7.
8. The Importance Of Technology In Retail Industry?
1] Making Tech Work For You
Technology enables a machine to perform tasks that can be executed repeatedly with a
standard set of instructions without getting tired, thus letting the human mind function and
focus on what is more important.
Especially in retail, technology gives you the platform to better satisfy your customers by
helping you concentrate on their needs. And happier customers mean more business.
2] Retaining Warmth In Interactions
Consider a customer at a retail store who is waiting at the counter for billing. The clerk at
the counter scans through the items at the POS (Point of Sale) and gives the final bill.
Now, from this practice, what you get is data about the customer. Over time, this kind of
information helps you have an understanding of the pattern of inventory flow.
3] Efficient Management
Integrated technology in retail is the best way to stay on top of your business, even if it runs
across multiple locations.
As a small retailer, your aims would be stabilization, positive cash flow, and expansion, in
that order. Using technology can give you stability- especially in the retail context where
stock-outs can mean lost business.
9. 4] Better Integration And Communication
Using technology in retail, it is now possible to control all of your business operations
from a single dedicated system or even from multiple systems across locations.
Imagine the amount of time you can save with this practice! With an increase in the
number of stores or/an increase in the inventory, gathering information and managing it
becomes tough. By using the same retail software across stores and channels, your
inventory is now in one place.
10. APPLICATION OF TECHNOLOGY IN RETAIL INDUSTRY
1. Technology Applications in Merchandising
(a) Sourcing
(b) Stocking/Warehousing
2. Technology Applications in Store Management
In Human Resource Management
Finance and Accounting
Store Display
Security.
Marketing and Customer Relationship Management
Data Warehousing and Data Mining
Customer Interfacing Systems
Payment
Internet
11. Factors influencing Technology Selection
1] Is there a Need for Technology Adoption at All?
2] Volume of the Business
3] Nature of the Products Dealt With
4] Availability of Financial Resources
12.
13. TECHNOLOGICAL TRENDS IN RETAILING
1. Point of Sales (POS)software
2. Electronic Retailing
3. Interactive Projection Displays
4. Attention Seeking Display Units
5. Vending Machines
6. Handheld Computer Devices
7. Radio Frequency Identification (RFID)
