PSFK Future of Retail
The PSFK Future of Retail Report is out which captures and contextualizes early stages of a seismic shift that is changing the face of the retail landscape. Big box retailers like Best Buy and Walmart are beginning to feel the heat as sales decline in the face of stiffer competition from e-commerce giants like Amazon. ‘Showrooming’ is the new reality. Shoppers are more educated than ever before and the ability to check prices on the fly has resulted in increased commoditization and a rethinking of how brands and retailers go about providing a differentiated offering. The pressures that companies like Amazon and Alice.com are exerting on the marketplace have forced traditional retailers to contemplate a multi-channel approach to online, mobile, and bricks-and-mortar sales. A hallmark of this changing retail environment is the savvier shopper who takes advantage of technology, is prepared to offer their personal data for a better experience, and has come to expect contextually relevant recommendations. They are actively engaged, want a say in what products get made, will evangelize offerings to get a better price for themselves and their friends, and want to be rewarded for sharing their knowledge and expertise.
Great examples of how Big Data implementations are being used by Savvy retailers for collecting and analyzing unstructured data types like the web logs that show the movements of every customer though an internet storefront and then applying the same principles for offline customers in stores as well.
Oracle announced the results of its “From Overload to Impact: An Industry Scorecard on Big Data Business Challenges” report, which surveyed 333 U.S. and Canadian C-level executives from retail and 10 other industries to determine the pain points they face regarding managing the deluge of data coming into their organizations and how well they are using that information to drive profit and growth. These 94% of C-level executives say their organization is collecting and managing more business information today than two years ago, by an average of 86% more but 29% of executives give their organization a “D” or “F” in preparedness to manage the data deluge. 93% of executives believe their organization is losing revenue – 10% annually, and, on average, $50.5 million per year – as a result of not being able to fully leverage the information they collect.
Mobile Point-of-Sale Adoption
23% of retailers had already deployed mobile point-of-sale or point-of-payment technology. And even more retailers were gearing up for such a program: More than one in 10 were in the midst of a pilot or trial program, and one-quarter of respondents planned to implement a mobile POS or POP program within a year.