The Golden Twenties of Retail

Universe of realities

The turn of the year is always accompanied by good resolutions. With the start of a new decade, the whole thing sounds even better. It is possible to plan and oracle for a decade, and in the end it is not even any decade. It’s the twenties. That historic decade, in other words, which established for Germany a hundred years ago the legendary designation of the Roaring Twenties.

Just like a hundred years ago, we are in a state of flux again today. Groundbreaking innovations in information technology and digitization have already changed industry and society in recent years, and this trend is set to continue. Artificial intelligence (AI) is THE buzzword of the moment. Great is the hope that well-programmed AI will make our lives even more convenient, efficient and intelligent.

The transparent customer – omni-channel and AI

If we now turn our gaze to the possible innovations in retail in the coming 20s and are a bit visionary, we can decidedly imagine the perfect shopping experience thanks to the omni-channel collection of customer data in combination with artificial intelligence. Personalization of the shopping experience is the fundamental principle of the future. In this way, customers will be able to be offered exactly those products that fit their portfolio in the first step. The portfolio includes all indications about interests and purchases of the customer across all industries.

We will find out exactly what the changes will look like at the latest when the transformation plan is presented, probably on 26.03.2020 [2]. Previous statements speak mainly of a change in store space and product range, but a centralization process has already taken place within the Group as well. In addition to a central pricing strategy, this also involved assortment and space management [3].

In the name of providing the best possible customer experience, the stores are to be designed in a uniformly appealing manner, which includes reducing the overall floor space, concentrating the merchandise assortment and creating a modern, appealing atmosphere. In addition, the omni-channel concept will be strengthened and expanded. Faster website loading times and an in-house app [4], for both customers and employees, will make the Group competitive in online retailing [5].

Photo: Alex Knight | Pexels

Vision: 20s Customer Journey

Starting with targeted advertising for products from the customer’s circle of interest, through the availability of suitable products in the store of his choice, to precise information on pick-up or delivery options, the purchase of the products is planned. Explicit on- or offline advice on the offered product or a comparable product in price and performance can be provided at any time upon customer request. The market pick-up or the desired delivery is structured in detail and perfectly coordinated with the customer’s daily schedule. Delivery times and locations offer every convenience, as well as personal pickup at the store. The store becomes a showroom through which the customer is guided to his desired product and informed via augmented/virtual reality. Payment is cashless and the exchange is possible at any time in case of dissatisfaction with the product.

Digital Retail & Mixed Realities

It goes without saying that a competitive customer experience at the PoS is inconceivable without nationwide e-mobility and broadband expansion. More and more retailers and brands will offer apps that guarantee the omni-channel shopping experience and show customers the availability of the products they want in real time. The store will once again become a place of inspiration, away from overcrowded or empty shelves where people desperately rummage for the goods they want until, exhausted and disenchanted, they order the product online. No more filthy, smelly dressing rooms and frustratingly long lines at the cash registers. That is what we all want. Instead, we will relax and seek advice at the PoS and try on our new favorite piece in virtual fitting rooms [1] without acrobatic contortions and sobering lighting.

Numerous disruptive moments in retailing in recent years prove that these scenarios are not mere utopias. The need for transformation processes in retail is evident. If you miss out on digitization, you’re quickly out of the game. Touchpoints, cashless payment, and shop-on, pick-off models for linking brick-and-mortar and online retailing have long been present.

We are prepared for this world of retail and can offer the next generation of digital consulting today. We would be happy to provide you with individual information on how you can make yourself fit for the expectations of the modern customer at the PoS. Together with you we want to write the Golden Twenties of the twentieth century. Let’s get it on!

back to the blog

Sources:

Cover image by Annalise Batista on Pixabay

[1] n-tv, “So techt Deutschland – Einkaufen mit Avataren ist die Zukunft”, 19 FEBRUARY 2020