Today, consumers are more connected than ever and have increasingly more control over how and where they choose to shop. The new generation of late Gen‐Y to early Gen‐Z consumers are emerging as even more tech‐savvy, relying on Smartphones to do many of the tasks that baby boomers did manually (e.g. grocery shopping, vacation planning, clothing purchases). There is a great expansion in the use of web and mobile applications to conduct research and perform price‐checking prior to making purchases. For many people, using these tools has become so ingrained in daily activities that they do not realize the extent to which their shopping patterns have changed from previous years.
As a result of these changes, the pressure is mounting for retailers to work harder than ever to maintain their loyal customers. The expansion of US‐based stores, such as Target into Canada, anticipates even more disruption through price and product competition, and emphasizes the importance of maintaining volume of sales and customers. This drives discounting, more frequent promotional offers, exclusive brand and product offerings, and other innovative marketing strategies, such as personalized direct to consumer marketing.
At this time in Canadian retail, competition is continuing to increase and the demand for streamlined services is becoming more rampant with retailers investing in digital signage and developing remote web‐apps that are accessible via Smartphones. Retailers are just starting to catch on to what the new the customer value proposition is and how to add excitement to their loyal customers’ shopping experiences. And, these industry changes are not just impacting big‐box or large‐scale retailers, but rather all retailers regardless of size. These organizations face the challenge of not being able to operate in their traditional manners. It is important today to connect and know everything about the people who are buying your goods and wares, and the current system likely is not going to work.
The retail industry has been hit with a series of events which will have a transforming effect over the next 36 months. The power of technology has found a roosting spot smack in the middle of retail needs and requirements. Rarely has the functionality of technology been so neatly dovetailed into the needs of a user community. For many years retail had the concession to avoid doing a deep dive with retail technology preferring to invest in warehouse solutions, supply chain initiatives and inventory management projects. However the wave of Smartphones, tablets and the growing popularity of the ‘app’ world, has made it essential for retailers to embrace technology or be left behind by those who do.
Learn more about the impact of technology on the Canadian retail industry and get your free copy of the latest BDO 2014 Retail Issues & Trends.
By Christopher Johnsen, National Partner, BDO Solutions.
About BDO Solutions
BDO Solutions is a national firm with local practices throughout Canada, a Microsoft Gold Certified ERP and CRM Partner and Reseller of the Year in Canada for 2010, 2011 and 2012.
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