8 of the Top In-Store Technology Trends to Watch in Retail
Photo of Kroger’s smart carts
By Tricia McKinnon and Ben Rudolph
Retail is not dead but it is changing and technology is the way forward. Not just online but in-store as well. A survey by AT Kearney, found the technology consumers want the most is technology that allows them to reduce time at the checkout. That is not surprising since consumers in the United States spend more than 60 hours each year waiting in line to checkout. After that consumers want technology that decreases the amount of time they spend looking for products in store. Then coming in third is technology that allows consumers to learn more about a product and how to use it.
The data shows that consumers are not looking for the bells and whistles but instead want solutions that are practical and meet the needs of an increasingly time strapped consumer. With 86% of retail sales still taking place in stores in the United States a number of retailers are experimenting with technologies that provide consumers with exactly what they are looking for. Take a look at these eight examples to see how retailers are embedding new technologies in-store to improve the customer experience.
1. In-store mapping. Home Depot’s mobile app directs customers to what they are looking for in-store using mapping technology. Home Depot describes the functionality as “a GPS for your shopping list. Once you have downloaded the app to your smartphone it will help you quickly navigate your way through the aisles of your local store.” The app also contains a shopping list function so that while you are browsing online and selecting items you are interested in when you arrive at a Home Depot store you can quickly and easily use the app to direct you to the location of the product you are searching for. Customers can also use the app to check in-store inventory availability.
2. Smart shopping carts. Customers shopping at Amazon’s new grocery chain, Amazon Fresh can use Amazon Dash Carts which allow customers to skip the checkout line. Customers use the carts by swiping in using the Alexa mobile app then they start shopping. The carts use: "a combination of computer vision algorithms and sensor fusion," to determine what a customer has placed inside of Dash Cart and how much the customer’s groceries cost. “The cart has some convenient features for grocery shopping, including a screen at the top where you can access your Alexa Shopping List to check items off and view your subtotal. In addition, every cart is equipped with a coupon scanner where you can quickly apply store coupons as you shop,” writes Amazon on its website. Amazon also says that by using Dash it makes "a quick grocery trip even quicker by allowing you to skip the checkout line."
Kroger, the largest supermarket chain in the United States, is piloting an artificial intelligence enabled “smart” shopping cart. The cart allows customers to scan, pay and checkout using the cart. The cart even has a built in scale for products whose price are determined by weight. The carts also provide product recommendations, promotional offers and have way finding capabilities.
3. Scan & pay. Using Macy’s mobile app customers can self-checkout using Scan & Pay. Customers scan merchandise tags using the Macy’s app and also pay for merchandise using the app. Before leaving the store, sales associates take off security tags on items, confirm the payment and provide shopping bags.
Speaking about the Scan & Pay initiative at an investor conference, Macy’s CEO, Jeff Gennette said “if you want to talk about the single biggest pain point in our stores right now, it’s the checkout process. It’s finding the register. Is there going to be somebody there? Is there a long line of customers and how long is it going to take me to get out?” Macy’s hopes the initiative will provide a better customer experience and so do several other retailers.
Do you like this content? If you do subscribe to our retail trends newsletter to get the latest retail insights & trends delivered to your inbox
4. Mobile phone assistants. Using Nike’s app while in store a customer can scan a product’s barcode to receive more data on the product including whether or not the product is in stock, in store, at nearby stores or online and what colours are available. In selected stores they can also use the app to request to try on a shoe. After making the request using the app, the app shows the customer that the sales associate has received the request and is in the process of retrieving the product. To use this functionality customers must be members of NikePlus, Nike’s loyalty program.
5. Connected fitting rooms. In typical retail stores, shoppers browse a brand’s offerings, look for their size, grab what they like, and retreat to the fitting rooms; not at Reformation, where there is only one of each item on display. To try on items, customers add items to a fitting room on a giant touchscreen on one of the store’s walls, or with the help of a tablet-carrying salesperson. After a customer is satisfied, they simply go to the dressing room assigned on the touchscreen, and then their selection(s) magically wait in a clothing wardrobe attached to the fitting room for them to try on.
Not satisfied with a size or colour? Customers put the clothing they are not happy with back in the wardrobe and use the tablet in their change room to find a new piece. Wait 90 seconds, and when the customer checks their wardrobe again…the new selection(s) magically appear for them to try on. The magic happens when the salesperson opens the other side of the wardrobe (once it is ready) to add or remove clothes (no more peeking out of a change room half-dressed looking for a salesperson to help).
In Fabletics’ newer stores, iPads are placed on the outside and the inside of a customer’s fitting room. Each item a customer wants to try on is scanned before the customer enters the fitting room and is added to the customer’s online profile. The sales associate can use the iPad on the outside of the fitting room to see all of the items the customer has brought into the fitting room. If a customer wants a clothing item in a different size they can use the iPad inside of the fitting room to make a request.
Speaking about the tech inside of the fitting room, Ron Harries, Vice President and Head of Retail at TechStyle Fashion Group (Fabletics’ parent group) said: “you can choose different colors, different sizes, ask for help — all of that without hollering across a wall. It also allows us to track conversion rates in real time in the retail environment. We know if you’re happy or not happy, and we can track conversion to what’s selling and not selling in real time.”
6. Customer service robots. In a selected number of stores, Lowe’s introduced LoweBot, a customer service robot. The robot uses natural language processing to answer customer questions. If you ask the LoweBot: where can I find lightbulbs, the LoweBot will travel across the store to show you where lightbulbs are located. It can also provide information on what is in stock in store. This information can be accessed by customers directly or even by store associates.
When asked if the LoweBot could eventually eliminate jobs, Kyle Nel, Executive Director of Lowe's Innovation Labs said “most definitely not — my phone doesn't make me obsolete."
7. Digital shelves. Kroger has introduced new technology in its stores called Kroger EDGE. EDGE stands for Enhanced Display for Grocery Environment. The new technology enables Kroger to replace traditional shelves with digital shelves. These shelves display a product’s price digitally enabling Kroger to change prices in real time, if for example, it wants to undercut the competition. Kroger can also use the digital shelves to display advertisements (including video ads) as well as nutritional information.
8. Magic mirrors. Neiman Marcus partnered with MemoMi to introduce memory mirrors in its stores. The memory mirror allows customers to record a 360-degree video of themselves trying on clothing. The technology makes it easier for customers to see their outfit from all angles. Additionally the mirror allows customers to digitally try on a piece of clothing in a different colour.
Not sure if you want to purchase a pair of pants in blue or navy? Instead of trying both of them on put on one pair and then allow the mirror to show you digitally how different colour options look on you. The mirror can also transform into a split screen so that you can compare looks. Once they are finished customers can email their looks to themselves or easily share them on social media.