Andrew Goodacre
Chief Executive Officer, BIRA
Retailing, one of our oldest trades, has survived many periods of growth and recession. It has adapted and evolved.
Let’s all agree that ecommerce is a form of retailing and not a separate activity. The future of retail in the UK will invariably throw up many more different challenges, and yet, retail will find a way of adapting. However, it will also look different.
Future of data-driven retailing
Retailing is basically about selling to consumers. Future success will depend on the retailer’s ability to understand the rapidly changing nature of the consumer. It used to be said that successful retailing was based on location. Now, and in the future, success will be based on data management much more than location.
Data management comes from ecommerce — traditionally. We are all used to leaving our data on a website, registering for updates, etc. Ecommerce companies do this well. However, data management has also been used very effectively by the likes of Tesco and Boots with their respective loyalty cards.
Modern retailers of all
sizes need to collect data
on their customers.
Data collection and AI’s contribution
Modern retailers of all sizes need to collect data on their customers. This can be done through loyalty cards, gift card vouchers, social media and through a website, to name a few. The good news is that customers seem willing to give up this data, provided they can trust your intentions.
More important is learning what to do with this data. In its most basic format, it should enable direct communication with customers through targeted promotions. It should show where customers are based, helping retailers understand their business reach. The challenge lies in managing the volume of data; and that is where AI becomes essential, helping retailers interpret customer insights at scale.
Omnichannel merges physical and digital
Physical retailing and ecommerce already work hand in hand — a model known as omnichannel retail. It is built on the idea that physical stores and ecommerce support, not replace, each other. The future of retail lies in evolving this model, giving consumers the best of both worlds in retail.
