Canadian Retailer - Holiday 2016 - 55
SPECIAL ONLINE FEATURE THE EVOLUTION OF RETAIL ENGAGEMENT IN THE DIGITAL AGE As the industry nears closer to a tipping point when online sales catch up to physical sales, Cognizant asks the question: what influence will this have on the retail environment, both in-store and online? BY SEAN C. TARRY THE retail industry is constantly evolving. Driven by the influence of technological advances, changing consumer preferences and behaviours, and retailer innovation, constant evolution ensures that there is never a dull moment for Canadian retailers. It also ensures that retailers remain nimble and agile enough in order to continue meeting the needs of today's empowered mobile consumer while reacting and responding in appropriate ways to the myriad of changes affected through the evolution happening all around them. Canadian Retailer hosted a retail technology and e-commerce roundtable back in October to discuss some of the opportunities and challenges facing merchants operating in the country and to prognosticate a little bit as well about what the future of retail might look like fifteen years from now. The conversation was moderated by Arnaud van de Voorde of Jackman Reinvents and Cognizant's Shannon Warner and included James Connell, Vice-President, E-Commerce and Marketing, Roots Canada; Kerri Dawson, Vice President, Marketing, Liquor Control Board of Ontario; Matthew Nelson, Vice-President & Chief Technology Officer, Sears Canada Inc.; and Alison Simpson, Senior Vice-President, Marketing & Customer Experience, Holt Renfrew. The conversation was a fascinating one as the panel touched on some intriguing points regarding the relationships retailers enjoy with their customers, some of the things that might influence those relationships in the years to come, and what retailers can do to deepen those relationships and strengthen their loyalty through smart use of technology and data and focus on their in-store service and offering. Canadian Retailer recently caught up with Cognizant's Shannon Warner to continue this engaging and thought-provoking conversation, and to find out from her what, from Cognizant's perspective, the future of retail will look like. www.retailcouncil.org/cdnretailer Canadian Retailer: The world of retail is changing. And the ways consumers like to shop with retailers, and ultimately purchase product, is changing as well. According to Cognizant's Future of Retail research, by 2020 61 per cent of retail sales will be web-influenced. What changes will this cause within the retail environment, both in-store and online? Shannon Warner: Stores will re- main an important asset for retailers, no matter what portion of sales are transacted online, and will continue to play an integral role in attracting new customers, building the brand, and servicing customers. However, given reduced 11% sales per square-foot, customers' Projected share of expectations and the cost of doing online purchases business, retailers must re-assess in 2016 the number, size and primary purposes of their stores. Leading retailers will turn their stores into experience centres, giving customers unique opportunities to discover and interact with products. Automation tools and sensors will enable stores to become high 51% performing nodes in the supply chain, enabling everything from Purchases made online by avid onlireal-time inventory visibility to ne shoppers in the more efficient services such as last three months click-and-collect, ship-from-store and omnichannel returns. The influence of online will continue to grow as a tool for research, price comparison, extended product assortment, specialized content, service, and purchases. The convenience it offers customers will make online channels preferred destinations for many shopping motives across categories, especially as technological advances continue to make it easier for customers to experience products virtually, checkout seamlessly, and receive their purchases quickly. Finally, the way retailers serve customers will be transformed. Service associates will become product advisors across channels, equipped with real-time knowledge of each customer and prompted on the best way to serve him or her based on the customers' value or potential value. LOSS PRVENTION ISSUE | CANADIAN RETAILER | 49
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