Retailers have their noses to the grindstone developing and building the industry’s future after two years of constant disruption. As the dust continues to settle, the store is still firmly implanted at the center of the retail universe, albeit with new strategic imperatives.
The annual “Store Experience Study” represents the 19th year of collaboration between RIS and IHL Group and provides the definitive study that examines trends for the coming year in terms of technological advances that impact retail operations, growth plans, budgets, and planned technology purchases for 2022 and beyond.
Last year retailers were focused on survival in dynamic and chaotic times. This year, the focus is on moving beyond the chaos and into a place of evolved normalcy.
PRESENTED BY
Moving
Beyond
the
Store Experience Study 2022
By Lee Holman and Tim Denman
TITLE SPONSOR
Chaos
Moving
Beyond
the
Store IT Spend Growth for 2022
4.9
%
Respondents with VP title or higher
49
%
Overall IT Spend Growth for 2022
5.8
%
Retailers planning a POS update this year
1/4
Store Remodel Growth for 2022
3.5
%
Retailers named upgrading CRM/loyalty as a top tech priority
50
%
Revenue Growth Forecast for 2022
6.9
%
STUDY HIGHLIGHTS
Read on to discover the current state of the store across the industry, the new role it will play in retail’s future, and where industry leaders are placing big tech bets to ensure their stores are equipped to thrive.
STUDY HIGHLIGHTS
TITLE SPONSOR
In parts of this study respondents are categorized according to how well they perform financially compared to their peers. Those that perform “best” (highest percentage revenue growth) are called “Leaders,” those that have the lowest percentage revenue growth are referred to as “Below Average,” and everyone in between is referred to as “Average.” This is done to determine what the Leaders are doing from a technology standpoint that the rest of the respondent population isn’t. For this study, we defined a Leader as a retailer that claimed a year-over-year sales increase of 10% or more.
Leaders really shine when it comes to optimizing new customer journeys. For the traditional online transaction (buy online/deliver from a warehouse or DC), Leaders’ processes were 41% more optimized than all other retailers. The numbers for BOPIS (31%), ship from store (37%) and local store delivery (27%) were also impressive and exceeded all other respondent groups.
For technology that is currently in use, Leaders were 2.1 and 2.0 times as likely to have updated their POS hardware and software (respectively) as all other retailers. Further, they were more likely to have mobile for managers (107% more likely), mobile for associates (72%), and mobile POS (53%) deployed and functioning.
Leaders plan to increase micro-fulfillment and robotics in inventory operations by 600% in the next two years. The data shows that more than 50% of Leaders will have geo-location for marketing within two years, and currently they are 193% more likely to be using it than Average retailers. Nearly half (47%) of Leaders expect to have 5G deployed in their stores in the next two years, which would reflect a growth of 852% from today. Finally, over the next two years Leaders are expecting 778% growth in the deployment of voice recognition for order picking.
23% higher store count growth
60% higher remodel growth
69% higher enterprise IT spend growth
44% higher store IT spend growth
5% higher BOPIS IT spend growth
12% higher local delivery IT spend growth
When it comes to growth plans for 2022, Leaders are setting an impressive pace, they expect:
STUDY HIGHLIGHTS
SPONSORED BY
PRESENTED BY
Retailers have their noses to the grindstone developing and building the industry’s future after two years of constant disruption. As the dust continues to settle, the store is still firmly implanted at the center of the retail universe, albeit with new strategic imperatives.
The annual “Store Experience Study” represents the 19th year of collaboration between RIS and IHL Group and provides the definitive study that examines trends for the coming year in terms of technological advances that impact retail operations, growth plans, budgets, and planned technology purchases for 2022 and beyond.
Last year retailers were focused on survival in dynamic and chaotic times. This year, the focus is on moving beyond the chaos and into a place of evolved normalcy.
SPONSORED BY