Canadian Retailer - Holiday 2016 - 57

CR: What do you think the retail store of the future will look like? What are some of the changes, both drastic
and subtle, that will occur over the next fifteen years or so?
Warner: No one can reasonably predict what will happen 15 years from
now, but one thing we know for sure
is that if we don't act aggressively today we will surely be left behind and
quickly become irrelevant. The retail
experience we know today will be
very, very different 15 years from now.
The changes that occur will dwarf
the changes of the last 75 years. Some
specific areas of change include:
* Data will inform every decision and
customer interaction with increased
focus on artificial intelligence,
cognitive computing, and predictive analytics requiring retailers to
invest in acquiring new skillsets.
* The number of physical stores
will decrease and the reliance on
online to achieve profitable sales
growth will increase.
* The amount of selling space in
stores will decrease and stores will
become experience centers with a
purpose of bringing the brand to
life and getting customers excited
about the products. Available product assortment will be expanded
dramatically and will be accessible
across every channel, with stores
showcasing select items and samples. Augmented reality, sensors,
connected products experiences
integrated with consumer devices,
and individualized service will
become mainstream.
* Stores' backrooms will increase in
size and automation and robotics
technologies will be leveraged to
enable stores to become efficient
supply chain nodes.

* There will be a single commerce
path (i.e. POS and online checkout
will converge)
* Digital assets and content will be
managed for broader utility (e.g.
sell to customers, equip sales associates) and Artificial Intelligence
will be leveraged to ensure the
content constantly evolves with
customers' needs.
* Automation, robotics, and biometrics will replace manual, repetitive tasks and remove customer
friction points (e.g. checkout, shelf
stocking, etc.)
* Service will be transformed with

As Warner points out, nobody can confidently predict
what the retail environment will look like 15 years from
now. But, it can be reasonably suggested that it will not
look like the retail environment of today. One thing about
retail that isn't ever going to change is the interaction
that's required between retailer and consumer. Despite
what you might think, whether that interaction will become greater or more subtle, be experienced in-person or
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more leverage of digital channels
(e.g. screens in stores, video, social
media) with increased focus on
individual associates building
1:1 relationships with customers
across all channels.
* The last mile of order delivery will
leverage new methods to reduce
costs (e.g. Uber, autonomous cars,
crowdsource drivers, etc.)
* Connected product packaging and
SKU-level RFID will change how
retailers manage and distribute
their inventory and how customers
interact with products.

virtually, it will always be necessary. What will change is
the technology used to enhance and enabled it and the
level of personalization that will be achieved.
To take a look at the full 'Future of Retail' roundtable
conversation that was printed within the Fall 2016 issue
of Canadian Retailer, visit www.retailcouncil.org/
publications/canadian-retailer

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