As we move into a new year, our thoughts turn to the time ahead and what it will hold. For the world of retail technology, 2024 looks set to be an exciting year. As consumer demands continue to evolve, and competition is hotter than ever, retailers are embracing innovative solutions to stay ahead.

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So what are the key trends for retail technology in 2024? We’ve taken a look into our crystal ball and come up with the top seven that we see making the biggest impact over the next 12 months.

  • Personalisation and loyalty – Personalisation will continue to be a driving trend in 2024 – and with good reason – according to McKinsey, companies that get personalisation right can generate up to 40% more revenue. * Customers get the offers and products that they want, and the retailer increases their marketing ROI, sales and profits. But with the move away from third party data, collected via cookies, retailers are focusing on increasing the data they capture through their own direct customer interactions, such as loyalty programs, rather than through third party interactions.
  • Artificial Intelligence (AI) – AI in retail is rapidly growing, with the global market expected to increase from $4.84 billion in 2021 to $31.38 billion in 2028. ** AI in retail has a wide range of applications, including:

    • Predictive analysis that helps retailers use the insights in their data to plan for the future.
    • Process automation – such as inventory management, tracking stock levels and re-ordering.
    • Store layouts – optimising sales by tracking shoppers and the way they navigate the store.
    • Customer service – chatbots and personal assistants to enhance the customer experience.

    Closely related to AI is Augmented Reality (AR), which overlays the real world with the digital world, to enhance the shopper’s experience and increase sales, with applications such as make-up, virtual dressing rooms, and room styling.

  • Payment options – Frictionless checkout means making the payment process as smooth as possible and giving customers a range of ways to pay. The trend continues, with contactless payment options still a driving force – whether by tap and go credit card, mobile payments such as Apple Pay and Google Pay, or wearable payment tech. 2024 will also see the increased use of blockchain technology for payments, and retailers exploring the fusion of proprietary in-store currencies with loyalty programs. This combination of payments and loyalty gives retailers the opportunity to build and manage and end-to-end brand experience.

  • Online/offline integration – As the lines continue to blur between online and brick and mortar shopping, it’s about more than ensuring customers have the same experience in both. In 2024, it’s about combining the two, and bringing the digital into the in-store store experience, using retail tech to implement services such as the digital personal shopper, digital in-store navigation, or scanning a QR code for product information, such as recipes, provenance or styling ideas.

  • Electronic shelf labelling (ESL) – ESL technology is not new, but it is has gone through a dramatic change *** and has matured to the point that it is set to be a significant trend in 2024. As part of the Internet of Things (IoT), ESLs have shifted from simply reducing the paper and staff effort required to keep prices up to date, to offering a whole range of addition retail functionality **** – such as product information, mobile payment facilitation, manufacturer advertising, out of stock alerts, tailored offers based on customer preferences, even reading a customer’ grocery list on a mobile device and lighting up the shelf labels for their items for easy picking.

  • Automated store concepts – Automation within the store, streamlining the shopping and checkout process, continues to be a key technology trend in 2024. The ‘checkout-less’ store concept which started with Amazon Go is being implemented by major retailers such as the UK’s Tesco, with their Tesco GetGo supermarket + in London. Scan and Go, with customers scanning their own goods, continues to grow, and as do vending machine stores, such as Mini 7-Eleven.

  • Smart energy management and sustainability – Sustainability is a must-have strategy for any business in 2024, and retail is no exception. Consumers are voting with their feet and have clearly stated their preference for buying from companies that take environmental concerns as seriously as they do. Retail tech plays a role here too – for example with sensors that monitor and control energy consumption, and through cloud computing services for key platforms such as point of sale, inventory management, loyalty and promotions.

    Technology, like retail itself, is always moving forward, always responding to the market, and always changing. As retailers navigate this dynamic landscape, those that understand the key trends and can implement the technology that keeps them ahead of the curve are poised for success in 2024.

How does cloud software help retailers to drive sustainability?

Cloud-based solutions tend to consume less energy, as the computing devices are based in data centres designed and built for scale and efficiency. Retailers consume only the resources that they need – unlike most on-premise servers, which are typically sized for what they may need in the future. So by using cloud-based software for key retail technology systems, such as point of sale, loyalty, inventory, promotions and analytics retailers are contributing to reducing their energy footprint.

What is the difference between first-party and third-party data?

Third- party data is collected by someone other than the retailer themselves – the ‘third party.’ It typically comes from cookies – from such as social media, search history or online transactions. The ‘third party’ that collects this data makes it available to the retailer, but the retailer does not own the data and is limited in the analysis they can do. Whereas first-party data is collected directly by the retailer – for example through their own loyalty program. The retailer owns the data, which gives them far more control over and insights into it.

References:-

*https://explodingtopics.com/blog/personalization-stats#top-personalization-stats
**https://www.statista.com/statistics/1256646/ai-in-retail-market-size/#:~:text=Global%20AI%20in%20retail%20market%20size%202020-2028&text=The%20global%20market%20for%20the,billion%20U.S.%20dollars%20by%202028.
***https://www.abiresearch.com/blogs/2023/10/24/electronic-shelf-labels-in-retail/#:~:text=Retailers%20are%20increasingly%20adopting%20Electronic,the%20installed%20base%20is%20low
****https://www.grocerydive.com/news/why-more-grocers-are-putting-electronic-shelf-labels-in-their-stores/642002/
+ https://www.thegrocer.co.uk/tesco/tesco-launches-checkout-free-store-getgo-in-central-london/660936.article#:~:text=Tesco%20has%20opened%20its%20first,without%20stopping%20at%20a%20checkout.

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