As we enter 2024, the retail landscape is undergoing a significant transformation driven by the relentless march of artificial intelligence (AI), changing consumer habits, and economic pressures. In this post, I want to share with you some of the key trends that are shaping the future of retail, based on a recent article by Forbes1.
To make this blog post more fun, I have created an image of me in a point of sales using Microsoft Designer, a graphic design app that helps you create professional quality social media posts, invitations, digital postcards, graphics, and more. You can check it out here and see how easy it is to use. I hope you enjoy it!
I also want to thank my worldwide channel sales team at Microsoft, all my Microsoft stakeholders in the different regions, and our key partners for their hard work and dedication. You are the best!
Shoppable Commerce
One of the most exciting trends in retail is the emergence of shoppable commerce, which is the integration of content and commerce across different platforms and channels. Shoppable commerce allows consumers to discover, browse, and buy products directly from the content they consume, such as videos, social media posts, podcasts, and more.
For example, Walmart2 launched a new scripted shoppable series called “Add to Heart” that debuted across TikTok, Roku, and YouTube. The series features products from Walmart that viewers can easily purchase by clicking on the screen or scanning a QR code. This is a smart way to leverage the power of storytelling and entertainment to drive sales and engagement.
Shoppable commerce is not only convenient for consumers, but also beneficial for brands and retailers, as it reduces friction in the purchase journey, increases conversion rates, and provides valuable data and insights. To succeed in shoppable commerce, brands and retailers need to create compelling, informative, and authentic content that showcases their products in relevant and appealing contexts, and distribute it across the platforms and channels where their customers are.
Autonomous Checkout
Another trend that is transforming the retail experience is autonomous checkout, which is the use of AI and computer vision to enable customers to shop in physical stores without having to scan items or interact with cashiers. Autonomous checkout eliminates the pain points of waiting in line, fumbling with cash or cards, and dealing with errors or fraud.
One of the pioneers of autonomous checkout is Amazon3, which launched its Amazon Go stores in 2018. These stores use sensors, cameras, and deep learning to track what customers pick up and charge them automatically when they leave. Amazon has also licensed its Just Walk Out Technology to other retailers, such as Hudson Nonstop, a convenience store at the Chicago Midway airport, and American Eagle Outfitters, an apparel retailer.
Autonomous checkout is not only convenient for customers, but also cost-effective and efficient for retailers, as it reduces labor costs, inventory shrinkage, and operational overhead. To implement autonomous checkout, retailers need to invest in the technology and infrastructure required to track and process transactions, as well as educate and reassure customers about the security and privacy of their data.
Curbside Pickup Innovation
A third trend that is reshaping the retail landscape is curbside pickup innovation, which is the enhancement and expansion of the curbside pickup service that became popular during the pandemic. Curbside pickup is a service that allows customers to order online and pick up their items at a designated location outside the store, without having to enter the store or interact with staff.
Curbside pickup is a win-win solution for both customers and retailers, as it offers convenience, speed, safety, and flexibility. Customers can save time and avoid crowds, while retailers can increase sales, reduce returns, and optimize inventory. Curbside pickup also creates opportunities for cross-selling and upselling, as well as loyalty and retention.
One of the leaders in curbside pickup innovation is Target4, which has added new features and services to its Drive Up program, such as delivering hot Starbucks coffee, accepting returns, and offering same-day delivery. Target has also integrated its Shipt app, which connects customers with personal shoppers, into its Drive Up service, allowing customers to get their groceries and other items delivered to their car in as soon as an hour.
Curbside pickup innovation is not only about convenience, but also about creating a memorable and differentiated customer experience. To excel in curbside pickup innovation, retailers need to leverage technology, data, and personalization to offer value-added services, customized offers, and seamless interactions.
Virtual Stores and Service
A fourth trend that is revolutionizing the retail industry is virtual stores and service, which is the use of digital tools and platforms to replicate and enhance the in-store experience online. Virtual stores and service allow customers to interact with products and staff in a realistic and immersive way, without having to visit a physical store.
For example, Best Buy5 has launched a new virtual store concept that puts its customers in direct contact with Best Buy employees via an online interface. Customers can speak with a Best Buy employee who is standing by, inside a virtual mockup of a Best Buy store, ready and able to assist and answer any questions via video conferencing. Customers can also see the products in action, compare different models, and get personalized recommendations.
Virtual stores and service are not only convenient for customers, but also profitable and scalable for retailers, as they increase conversion rates, reduce return rates, and expand reach and accessibility. To offer virtual stores and service, retailers need to invest in the technology and talent required to create and manage realistic and engaging digital environments, as well as train and empower their staff to deliver exceptional customer service online.
Smart Stores
A fifth trend that is impacting the retail sector is smart stores, which is the use of AI and IoT to create intelligent and connected physical stores that optimize operations, enhance customer experience, and generate insights. Smart stores use sensors, cameras, RFID, and other devices to collect and analyze data from various sources, such as inventory, traffic, sales, and customer behavior.
One of the innovators in smart stores is Schnucks, a regional grocer based in St. Louis. Schnucks has deployed various technologies and solutions to create a smart grocery store of the future, such as robots roaming the aisles, electronic shelf labels, GS1 barcodes, mobile order ahead, and single-line queuing. Schnucks uses the data from these technologies to improve product availability, pricing accuracy, customer satisfaction, and operational efficiency.
Smart stores are not only efficient for retailers, but also enjoyable for customers, as they offer a smooth and personalized shopping experience. To create smart stores, retailers need to integrate and leverage the technology and data available to them, as well as collaborate with partners and vendors to deliver innovative and value-added solutions.
Conclusion
These are some of the key trends that are defining retail in 2024 and beyond. As the retail industry continues to evolve and adapt to the changing needs and expectations of customers, brands and retailers need to embrace and harness the power of AI and digital innovation to create differentiated and compelling value propositions that drive growth and loyalty.
What do you think of these trends? How are you preparing for the future of retail? I would love to hear your thoughts and feedback. Please feel free to leave a comment below or contact me directly.
1: 5 Real-Life Examples That Show Where Retail Is Headed In 2024 And Beyond 2: Walmart 3: Amazon 4: Target 5: Best Buy : [Schnucks]
Md Consulting 
Leave a comment