Andrew Goodacre
CEO, British Independent Retailer Association
The need for retail to be dynamic is never-ending. The pace of change has never been quicker, resulting in failure for some and opportunities for others.
Retail has already moved from a sector based on location to one based on data management. But both principles are entrenched in the ongoing need to understand consumer shopping behaviours
The evolution from traditional high-street retailing to e-commerce has been challenging for both large and small retailers. The way customers shop has changed, and how they gather information has also changed. The result has been a retail sector that has embraced an omnichannel approach, with physical and e-commerce retail channels complementing each other.
E-commerce success lies beyond having a website
To succeed online, there needs to be a comprehensive digital marketing strategy that connects and engages the target customers. A marketing plan that will express the retailer’s values, plus the quality of products and services. Failing to understand the customer will likely cause the failure of the retail operation.
This is why personalisation has become such an important factor in retail. E-commerce allows a retailer to capture vital consumer information. This data is used to build customer profiles, predict behaviours and streamline communications. Seamless customer journeys from online to physical store are now a reality.
The way customers shop has changed, and how they gather information has also changed
How AI changed the retail game
Just when retail thought it had e-commerce cracked, along came AI and ‘agentic shopping.’ Just as we saw customers move away from visiting high streets to ‘window shopping’ by using Google search, we’re now seeing a move from shopping yourself to having software shop on your behalf. Think less ‘search and browse,’ and more ‘delegate and approve.’ It’s a personal shopping agent that will follow a brief and do all the necessary searching.
An AI-powered shopping agent will learn a person’s tastes, budget and needs, then make recommendations. In many ways, this is moving the power from the search engines back to the consumer. Retail must respond to this, and it entails focusing on understanding the needs of your target customers and adapting to yet another way of shopping.
