What kind of change are we seeing?
Pivot mindset
Digital shelf edge technology
'Just Walk Out'
Pivot mindset
We have seen rapid innovation and a pivot mindset, for example 'Currys' in the UK now undertakes customer service via video chat - with staff in-store showing online customers the item in real time, creating a consistent experience for the online and in-store customer. We’re also seeing greater leaps in tech system integration, with a higher adoption of 'real-time' inventory access.
Digital shelf edge technology
For a number of years we have been aware of digital shelf edge labels for stores and the value that they can bring. It is amazing to think that stores selling products of all kinds rely on paper cards individually placed to display prices, and that price changes are still largely a manual intervention. Businesses are investing in shelf edge technology and are starting to see the benefit, so digitising an often error-prone manual task delivers the retailer and customer certainty and the benefit of immediate price changes (which can in the case of perishable foods also reflect those end of day reductions when products are not selling). In parallel, regulators are starting to explore the potential of e-labelling to discharge labelling obligations.
Governance factors
We have also seen Amazon's Just Walk Out technology being implemented in its stores and starting to be licenced to other retailers such as Starbucks and Sainsbury's. This has the potential to make shopping frictionless, while also having huge data benefits for the retailers adopting this technology as they far better understand store movement, shopping patterns and specific customer behaviour. Similar technology is now being leveraged to allow retailers to better manage inventory in alternative ways.
Payment evolution
Payment evolution
In addition to the physical acts, we anticipate payments being the next big evolution. While mobile payments on devices like Apple/Google Pay are widely accepted, there is no universal standard here. One innovation that impresses by simplicity and ubiquity is the Swiss TWINT digital cash model. Unlike most other systems, Switzerland's biggest banks are all behind the model meaning that acceptance is widespread and the system is quick and easy to use - whether it is paying a vendor on the side of a mountain as you hike or in the centre of Zurich. But, as with most solutions, it is the user experience that is key and that is where this is clever: the app has a range of functions from allowing vouchers for brands to be pushed to consumers, through restaurant bookings, to paying for parking and more. As a result, it is unsurprising that there are 11 million transactions a month and that at the end of last year there were over 3 million users (in a country of only 8.5 million people this accounted for about 50% of the adult population)! It seems inevitable money will become increasingly digital, whether alternatives like bitcoin become mainstream remains to be seen, but it is clear that new payment methods like TWINT are gaining popularity.
For as long as we can remember people have been talking about omnichannel as the future of retail. In reality, previously we had independent multichannel operations with online and offline operating independently, but we are starting to see rapid change:
Payment evolution
In addition to the physical acts, we anticipate payments being the next big evolution. While mobile payments on devices like Apple/Google Pay are widely accepted, there is no universal standard here. One innovation that impresses by simplicity and ubiquity is the Swiss TWINT digital cash model. Unlike most other systems, Switzerland's biggest banks are all behind the model meaning that acceptance is widespread and the system is quick and easy to use - whether it is paying a vendor on the side of a mountain as you hike or in the centre of Zurich. But, as with most solutions, it is the user experience that is key and that is where this is clever: the app has a range of functions from allowing vouchers for brands to be pushed to consumers, through restaurant bookings, to paying for parking and more. As a result, it is unsurprising that there are 11 million transactions a month and that at the end of last year there were over 3 million users (in a country of only 8.5 million people this accounted for about 50% of the adult population)! It seems inevitable money will become increasingly digital, whether alternatives like bitcoin become mainstream remains to be seen, but it is clear that new payment methods like TWINT are gaining popularity.
We do not see the pace of change slowing in 2022 and DWF are at the forefront of technology and consumer business model change. Whether it be navigating the regulations, as new technology and payment systems evolve, transforming your real estate or logistics portfolio to adapt to change, or renegotiating your contracts with suppliers and new digital engagements – we can support you in making your plans a reality.