If you’ve been following my recent posts, you’ve probably realized how much I enjoy exploring new trends in our industry. As the world around us transforms at a rapid pace, it’s vital that we stay alert and aware of the emerging trends and most compelling new statistics being revealed about the retail vertical.
For me, poring over the latest research and reports serves a critical purpose – by understanding the marketplace, and listening to both our customers and their end consumers, we can think strategically about how to best serve them. At Diebold Nixdorf, our solutions are designed for the challenges we see happening in stores around the globe today. So when I read the latest studies, the first thoughts that come to mind are … what does this mean for retailers and their consumers? How can we build actionable solutions that address these emerging trends?
Here are some of the most intriguing statistics I’ve come across recently – and why I think they’re so important to retailers’ long-term strategic success:
Report: The ROBO Economy: How reading reviews impacts offline sales by Bazaarvoice
“82% of shoppers say they consult their phones about a purchase they’re about to make in-store.” Furthermore, the report finds, globally more than 90% of transactions are still conducted offline.
What does it mean?
The amount of time consumers spend researching online before making a purchase decision is growing, but the majority of purchases are still taking place in physical store. Today’s shoppers expect you to have real-time awareness of both their purchasing journey and your own stock levels. Therefore, you need a consistent database of products, prices, promotions and customer data throughout all shopping channels. And it’s becoming more important to have a 360-degree view of your consumers’ behavior across those channels so you have the ability to build targeted promotions and marketing campaigns.
Your hardware and software must be able to link sales, merchandise and customer’ purchase history, and enable cross-channel order processing and item availability checks. In-store, enhanced mobile features – such as full POS functionality on a tablet or the ability to push stock levels in real time to employees’ mobile devices – can help you create the physical-to-digital convergence your consumers are looking for.
>> Diebold Nixdorf’s approach: We enable seamless consumer experiences through end-to-end omnichannel solutions.
“On a value basis, large supermarkets and hypermarkets account for just over half of global sales, but smaller formats such as traditional, drug and convenience great at a faster rate over the past 12 months.” The report also notes that year-over-year sales growth in those smaller-format stores are double that of larger supermarkets.
What does it mean?
New store openings will mainly be driven by small store formats and discount stores. Overall, we see a movement towards channel convergence, for example hypermarkets that offer collection points for online ordered groceries or discounters who open stores at high street (city-centre) locations. Whatever store format you are in, one statement applies to all: Planet Retail found that 56% of consumers feel technology makes their shopping experience better. Retailers that respect individual shoppers, and carefully evaluate which systems really meet their unique requirements, are more likely to cultivate and keep loyal customers.
You need a technologically advanced store IT infrastructure – but you can build this over time, adding components that can easily be integrated into your existing IT environment, to foster maximum flexibility to respond to your consumers’ demands and ensure higher system availability.
Two components are driving the retail market: cash management and flexibility. On one hand, automated cash-office processes are a must in order to keep track of your cash at every stage of the logistics chain, thereby boosting efficiency and reducing the risk of loss from theft and fraud. For small businesses especially, cash management deserves a strong focus.
Equally important to finding success in the face of this emerging trend is the ability to be flexible. These types of stores are best served by terminals that offer enhanced functionality. This could mean automated hybrid checkout systems that can either be used as self-checkout or manned checkouts, and can quickly convert back and forth, to enable more options for you and consumers. Or it could be a POS unit that can quickly morph from stationary to mobile just by detaching a tablet.
>> Diebold Nixdorf’s approach: We transform the way consumers shop through leading technologies that flex and fit to meet a wide range of needs.
Report: Global Powers of Retailing 2016: Navigating the new digital divide by Deloitte
Global expansions are ongoing. This Deloitte report notes that early one quarter of the Top 250 retailers’ revenues were generated from foreign operations. French and German retailers in particular are striving for a broader geographical footprint and earn roughly 45% of their total revenues from foreign operation in up to 30 different countries.
What does it mean?
For stores in new markets – especially in new regions or new countries – to be productive from day one, it’s critical that they implement a fully integrated solution consisting of reliable hardware, a multi-lingual and certified software suite and an experienced service team. For large scope rollout projects, it’s also crucial to agree on a governance model and establish a project manager who oversees all processes. This ensures maximum transparency for your expansion project, because rollout and system status information are accessible via the same, already established reporting tools.
>> Diebold Nixdorf’s approach: With a presence in more than 130 countries, and an international workforce of more than 25,000 employees, we have the infrastructure and scale to help you drive global expansion through harmonized and integrated solutions.
How we help retailers:
Our solutions are designed to meet your needs, in ways that are scalable, tailored to your organization and incremental. We offer something unique to the market: a comprehensive, retail-hardened portfolio, a multi-lingual software suite and thousands of service experts around the globe who manage stores throughout their lifecycle. You won’t find any other competitor in the market that offers such a complete solution. Would you like to find out more about how our collaborative approach could benefit your long-term strategic goals? Let’s start a conversation.