Posts

More than half of retailers look to utilise Internet of Things in next three years, report claims

MarketingTech – A new report released by BRP, retail consulting firm, has argued that in order to offer customers a unique personalised shopping experience in every retail channel, stores must blend physical and digital strategies – including the Internet of Things (IoT) and augmented reality (AR).

Customers are interested in trying new technologies if they find improvement in their in-store shopping experience, the report notes. The results provided by the BRP Consumer Study are therefore interesting. It found 32% of consumers are likely to shop at a store offering an AR experience over a retailer that does not offer the service; 29% would like to experience VR as part of their shopping environment.

The report also noted customers were very interested when it comes to relying on technology rather than human interaction if it makes the purchase process easier and fast. For instance, 55% of customers are more likely to shop at a store with self-checkout as opposed to a store without, and 57% will go to a store that offers automated returns to speed the process.

Read Full Article: More than half of retailers look to utilise Internet of Things in next three years, report claims

What technologies draw customers to stores?

Chain Store Age – Retailers looking to create the “Store of the Future” should include a few key technology offerings. That’s according to a new study from BRP, retail consulting firm, in which 55% of consumers are more likely to shop at a store with self-checkout and 57% will choose a store offering automated returns to avoid human interactions and speed the process.

The study, “Special Report: The Future Store,” also revealed that 32% of consumers are more likely to shop at a store offering an augmented reality (AR) experience and 29% would like a virtual reality (VR) experience as part of their shopping environment. However, only 9% offer AR to their brick-and-mortar customers and another 29% plan to within three years. Even fewer (7%) currently offer VR capabilities to in-store customers and 23% plan to within three years.

“While e-commerce and mobile continue to grow and garner attention, the store remains a key component of the brand experience and the central point of the customer’s shopping journey. In fact, nearly half of retailers plan to increase their number of brick-and-mortar stores,” said Ken Morris, principal at BRP. “However, the role of the store continues to change. The advent of the digital world offers consumers new ways and ‘places’ to research and shop. These digital possibilities, along with mobility, have modified consumer expectations and behaviors, and retailers must transform to succeed.”

Read Full Article: What technologies draw customers to stores?

55% of Retailers Plan to Utilize the Internet of Things (IoT) within Three Years, According to New BRP Report

IoT offers new opportunities to gather and utilize data to enhance customer expectations

Boston, MA – January 29, 2019 – According to BRP’s SPECIAL REPORT: The Future Store, stores must now encompass both the physical and digital worlds as customers expect a personalized experience in every channel. Customers want the sensory experience generally available in the physical world, such as touching and feeling merchandise and personally interacting with a knowledgeable associate, married with the unique and personalized shopping experience common in the digital world.

Customers are willing to try new technologies if it improves their in-store shopping experience. According to the BRP Consumer Study, 32% of consumers are likely to shop at a store offering an augmented reality (AR) experience over a retailer that doesn’t offer AR and 29% would like a virtual reality (VR) experience as part of their shopping environment. Consumers are very interested in relying on technology instead of human interaction if it makes the purchase process quicker and easier. For example, 55% are more likely to shop at a store with self-checkout vs. a store without and 57% will choose a store offering automated returns to avoid human interactions and speed the process.

“While e-commerce and mobile continue to grow and garner attention, the store remains a key component of the  brand experience and the central point of the customer’s shopping journey. In fact, nearly half of retailers plan to increase their number of brick-and-mortar stores,” said Ken Morris, principal at BRP. “However, the role of the store continues to change. The advent of the digital world offers consumers new ways and ‘places’ to research and shop. These digital possibilities, along with mobility, have modified consumer expectations and behaviors, and retailers must transform to succeed.”

BRP’s SPECIAL REPORT: The Future Storeis based on findings from the BRP Consumer Study and the 20thAnnual POS/Customer Engagement Survey and offers insights into customer expectations for the store of the future and how retailers’ current capabilities match up with these expectations.

The Future Store key findings:

INTERNET OF THINGS

  • Retailer capabilities: 19% currently offer Internet of Things (IoT) capabilities and another 36% plan to within three years

ARTIFICIAL INTELLIGENCE

  • Retailer capabilities: 23% currently utilize artificial intelligence and an additional 30% plan to within three years

AUGMENTED REALITY

  • Customer expectations: 32% are likely to shop at a store offering an augmented reality experience
  • Retailer capabilities: 9% offer augmented reality to their customers and another 29% plan to within three years

VIRTUAL REALITY

  • Customer expectations: 29% are likely to shop at a retailer offering virtual reality in their store
  • Retailer capabilities: 7% currently offer virtual reality capabilities to customers and 23% plan to add it within three years

To download BRP’s SPECIAL REPORT: The Future Store, visit:

https://brpconsulting.com/download/2019-special-report-pos-future-store/.

The special report platinum sponsor is TSYS, the gold sponsors are Aptos,Diebold Nixdorf, ECRSand Fujitsu, and the silver sponsor is STORIS.

About BRP

BRP is an innovative retail consulting firm dedicated to providing superior service and enduring value to our clients. BRP combines its consultants’ deep retail business knowledge and cross-functional capabilities to deliver superior design and implementation of strategy, technology, and process solutions. The firm’s unique combination of industry focus, knowledge-based approach, and rapid, end-to-end solution deployment helps clients to achieve their business potential. BRP’s consulting services include:

Strategy | Business Intelligence | Business Process Optimization | Point of Sale (POS)
Mobile POS | Payment Security | E-Commerce | Store Systems and Operations | CRM
Unified Commerce | Customer Experience | Order Management | Networks
Merchandise Management | Supply Chain | Private Equity

For more information on BRP, visit http://www.brpconsulting.com.

The Future Store is Here

The retail industry is in the midst of a retail renaissance as we move from the ‘olden days’ of a person walking in to a store to simply purchase a commodity, into a new technologically advanced era where artificial intelligence helps customers make informed purchasing decisions leveraging associate or customer facing technology along with augmented reality that enables them to view products on their body or virtually in their homes. Technology is bringing new life to brick-and-mortar stores as the physical and digital worlds collide.

The store is not dead, it’s digitized…

Over the past twenty years, many in the retail industry have predicted the demise of the physical store. That seemed like a reasonable assumption given the accelerated growth of e-commerce and advancements in mobile technology; however, the reality is, the store is still the foundation of retailing. It is where the tactile and sensory experience comes together for the consumer, but the traditional store concept is changing.

Disruption and adaptation are changing the retail model and blurring the lines among retailers, brands and wholesalers. Online pure-plays are opening brick-and-mortar stores and traditional retailers are experimenting with new store models and in some cases, expanded experiential brand strategies that include new revenue sources, such as services or food and beverage options. Retail is theater and with technologies like augmented reality (AR) and virtual reality (VR), the retail store is no longer the only stage where the theater of retail can take place. New technology will further empower customers as they can dictate their own personal stage and experience.

The physical store remains the foundation of retail; however, a significant and fundamental transformation of retail is underway and will change the requirements for the store of the future.

We recently conducted our 20thAnnual POS/Customer Engagement Survey and compared our findings on retailer capabilities with consumer expectations from the BRP Consumer Study (report coming soon!) to take a closer look at what the store of the future looks like. BRP’s SPECIAL REPORT: The Future Store gives you a closer look at what consumers expect from the store.

Download the report now because the future store is here, ready or not.

 

Virtual reality plays growing role in retail

Indianapolis Business Journal – Walmart is among the earliest retailers to embrace virtual reality on a large scale. It is in the process of deploying some 17,000 Oculus Go virtual-reality headsets to all of its 4,500 U.S. stores as a training tool for employees.

Other retailers in central Indiana, including the Macy’s at Castleton Square Mall and the Carmel-based franchise of California Closets, are using the technology to help customers visualize products and make purchasing decisions. For various reasons—including cost, cultural barriers and fear of the unknown—the technology is not yet in widespread retail use.

“The virtual reality experience has some barriers to it,” said Jeffrey Neville, a senior vice president and practice lead at Boston-based retail management consulting firm BRP, retail consulting firm. People might be self-conscious about wearing the goggles, and the immersive nature of the experience can cause motion sickness or dizziness. “It’s not quite a comfortable experience just yet,” Neville said.

Read Full Article: Virtual reality plays growing role in retail

Las Vegas stores using virtual reality for holiday shopping

Las Vegas Review Journal – Two stores in the Las Vegas area have found opposite uses for virtual reality this year — one to add people onto the sales floor, the other to remove people from the sales floor.

The Macy’s in Downtown Summerlin has added a headset to its furniture department to attract shoppers and show them what couches and other furniture look like inside a home.
Meanwhile, the Walmart near the intersection of Boulder Highway and Nellis Boulevard has added headsets to a room in the back of the store, away from the sales floor, for employees to train on how to interact with customers.

These companies are part of a growing number of retailers that experiment with new technology to directly and indirectly benefit shoppers.

Retailers tend to play catch up when it comes to adopting new technology, said David Naumann, marketing vice president at BRP, Retail Consulting Firm, which works with retailers and restaurants.

They tend to wait for someone to prove the value of new hardware or software before implementing the technology in stores.

But shoppers are increasingly demanding to shop with virtual and augmented reality — virtual reality meaning someone wears a headset and is immersed in a digital world, augmented reality meaning someone looks at a live cellphone video and sees digital elements interacting with the real world.

BRP data show that half of customers are more likely to shop with a retailer that uses virtual or augmented reality and that 32 percent of retailers plan to incorporate that technology in the next three years.

“As more and more retailers adopt VR or AR technology over the next few years, this will increase customers’ expectations for the same from other retailers that they shop,” Naumann said.

Read Full Article: Las Vegas stores using virtual reality for holiday shopping

Fashion’s infatuation with AR continues, but only certain use cases inspire consumer engagement

Glossy – As fashion brands are embracing augmented reality, the question remains of whether there is an actual appetite for such tools or if brands are pushing them in spite of apathy from consumers.

Over the past few years, augmented reality has become a powerfully appealing idea among Silicon Valley elites and marketing teams across industries, and some reports put the AR market at $83 billion by 2021. What’s more, a number of new AR-powered initiatives from brands in streetwear, luxury and mass fashion show that the fashion industry has confidence in the technology, but how much of that enthusiasm is reciprocated by consumers?

“The retail categories that are best suited for augmented reality are those with products that are very visual, like apparel and cosmetics, and those that are expensive to display in multiple assortments of style and color, such as furniture and décor items,” said Jeffrey Neville, svp and practice lead at BRP Consulting Firm. “Since approximately 50 percent of consumers say they are more likely to shop at retailers that offer augmented reality, it is something retailers should be evaluating.”

Read full article: Fashion’s infatuation with AR continues, but only certain use cases inspire consumer engagement

Why Should Retailers use Augmented or Virtual Reality?

Augmented reality (AR) and virtual (VR) offer new and enhanced ways for customers to experience products, like visualizing how a product would look in their home or even on their body.

Consumers see the benefit of VR and AR, as nearly half of consumers are more likely to shop at a retailer utilizing virtual or augmented reality, according to a recent study by Incisiv, sponsored by BRP and Windstream Enterprise.[1]As consumers shop for a new couch or bedroom set, it is very helpful to see what the furniture will look like in their house or browse a virtual array of options like colors and fabrics, rather than just viewing in a catalog or on a website – and VR and AR apps can make it happen.

Many retailers have already introduced AR apps and testing and deployment of VR apps is increasing. VR and AR offer interesting applications and opportunities, as the ability to mix virtual and real elements can be game changing – especially for furniture, home décor and apparel retailers. According to BRP’s 2018 Digital Commerce Survey, retailers understand the impact that VR and AR can have on the customer experience and 32% of retailers plan to use virtual and augmented reality within three years.

Macy’s is a recent example, as they’re currently rolling out a new virtual reality experience across 70 locations, combined with an AR app for home use, to offer an immersive furniture shopping experience that allows browsing and visualization of a much larger assortment of furniture than a typical store. Sephora’s “Virtual Artist” app uses AR to scan your face, figure out where your lips and eyes are, and lets you try different looks on your smartphone. Foot Locker’s “The Hunt” AR scavenger hunt inspired smartphone-toting sneakerheads to venture across Los Angeles to unlock geo-targeted AR clues throughout the city earning the chance to be among the first to acquire new limited-edition LeBron 16 King “Court Purple” sneakers. As more and more retailers adopt VR or AR technology over the next few years, this will increase customers’ expectations for the same from other retailers that they shop.

Immersive technology like VR and AR is redefining the way consumers can experience and buy products, leveraging the advantages of physical space, like the store or the customer’s home, without being constrained by the space. Traditional retail lines continue to blur as retail realities are rapidly evolving and the stage where the theater of retail takes place can be dictated by the customer.

I encourage you to read the 2018 Digital Commerce Survey for more insights:

Download Now

As always, I appreciate your thoughts and opinions on this topic.  Please share your feedback below.

Brian

[1]Retail’s Digital Crossroads: The Race to Meet Shopper Expectations, July 24, 2018. https://brpconsulting.com/download/2018-retail-research-report/

Retailers Adding Virtual, Augmented Reality

AI & IoT Daily – About a third of retailers are planning to implement augmented and virtual reality in the future, according to a new study.

Four percent of retailers say they already have implemented virtual reality but that it needs improvement, according to the digital commerce benchmarking survey by BPR, retail consulting firm, comprising a survey of leading retailers.

For the future, 28% of retailers plan to implement virtual reality, 7% of them within the next 12 months and 21% within the next one to three years.

Read full article: Retailers Adding Virtual, Augmented Reality

Virtual and Augmented Reality Enter Retailers

Convenience Store Decisions – Some 32% of retailers expect to add virtual and augmented reality in the next three years. Nearly 50% of consumers are more likely to shop at retailers that offer virtual or augmented reality, according to a BRP, retail consulting report. Through virtual (VR) and augmented reality (AR), innovative retailers are offering new and enhanced ways for customers to experience products, like visualizing how a product would look in their home or even on their body. VR and AR offer interesting applications and opportunities, as the ability to mix virtual and real elements can be game changing – especially for furniture, home décor and apparel retailers.

According to BRP’s 2018 Digital Commerce Survey, retailers understand the impact that VR and AR can have on the customer experience and 32% of retailers plan to use virtual and augmented reality within three years.

Read Full Article: Virtual and Augmented Reality Enter Retailers