Those in the retail industry that are successful in digitally transforming will be ones that leverage technology to innovate around an immersive and disruptive customer experience. These “lighthouse” retailers are the ones driving innovation, adopting emerging technologies early, and showing the industry what works and is possible. They are the ones experimenting with new models and store formats, playing with recombinations/reconfigurations of scale, assets, product, place, and people. The “store of the future” is the keystone of this effort.
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The store of the future will combine multiple formats to deliver an immersive and unique experience across all customer touchpoints online and in the store. It will be heavily instrumented for operational efficiency and digitally connected end-to-end to leverage a single view of customer, product, and order. The store of the future – despite its reliance on sophisticated technology and infrastructure – will be trying to look smaller and less intimidating, more personalized, and frictionless.
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The deployment of these and other digital technologies in disruptive ways can turn visitors into shoppers and shoppers into brand-loyal customers. However, understanding which consumers want personalization and which want contextualized and relevant experiences, while protecting everyone’s privacy, has grown more difficult. With so much at stake, data privacy has become a challenge for every party involved.
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