RETAILTECHNOLOGY

RETAIL MANAGEMENT TECHNOLOGY

ASSIGNMENT 2

TOPIC: RESEARCH ON NEW

TECHNOLOGIES AND THEIR
IMPACT ON RETAIL BUSINESS

SUBMITTED BY: TANYA CHOUDHARY (BFT/18/895)

SANSKRITI KUMAR (BFT/18/266)
ISHU RAJ (BFT/18/799)
ANISHA CHOUDHURY (BFT/18/115)
MS. KRISNAKANTHA (BFT/18/L12)

SUBMITTED TO: Dr. ANANYA DEB ROY

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WHAT IS RETAIL INDUSTRY?

Retail is the process of selling consumer goods or services to
customers through multiple channels of distribution to
earn a profit. Retailers satisfy demand identified through a
supply chain.
To do so they constantly are trying to attract more customers. They are always
finding innovative and attracting methods and ideas to get the consumers’ attention.
They find these methods by looking at the customers changing lifestyle and thus,
changing wants and needs.

The retail industry is one of the biggest industries on the planet and a critical
element in the backbone of the global economy. It is one of the one of the most
competitive fields of the economy. It is common knowledge that no matter how
niche your market might be - you have to fight for the place under the sun, you have
to persuade customers.

Retail business needs to be competitive

and to be such, it tries every new
technology on the block. It is hit and
miss but when it hits - it hits hard.
Concurrently, this helps to establish new
technologies and fit them into the
business model.

For example, just a decade ago such a thing as smartphone notification seemed
futuristic and now it is a norm. And that was not in the least because of the many
things that were added to the customer experience in online and offline retail.

What is technology?
Technology is applying scientific
knowledge to find answers and fix
problems.
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It is everywhere and all the time around us. Technology promises to make our lives
easier and simpler. It involves innovation of ideas, gadgets, strategies and framework.

CONTENT

Topics Pg. no.

I. Technology in retail 3

II. Use of technology in different aspects of retail 4

A. Inventory tracking 4
B. Customer service 6
C. Data warehousing 11

III. Effect of technology on retail 15

IV. Conclusion 16
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I. TECHNOLOGY IN RETAIL:

Why is technology important in retail?

Technology is revolutionizing the way we conduct business. Industries are

completely changing the way they execute their services from archaic techniques to
using modern technology for most of their needs. To accommodate this fast paced
era, technology has become an absolute necessity. One of the industries that
technology has really transformed is the retail industry. The retail business can be the
trickiest to get right due to many factors, and technology has undoubtedly helped to
counter many of the hurdles that come with having a retail business.

Retail is a cutthroat industry, and success depends on how well your firm does
against the competition. To stay ahead of the game, managers are using technology
to get better results. Especially in retail, technology gives you the platform to better
satisfy your customers by helping you concentrate on their needs. And happier
customers mean more business.
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There was a time when retail meant only one thing—a physical store. But in 2017,
retail can mean everything from brick-and-mortar and online to mobile and voice-
based search.
For consumers, however, the motivating factors behind their purchases are the same.
They want their goods at a reasonable price and as soon as possible. The most
successful retailers realize this and are offering seamless service at all touch points.

It's in every retail professional's best interest to become familiar with retail
technology. Whether you work on the sales floor or behind the scenes, mastering
retail technologies will help you stay marketable.

II. Use of technology in different aspects of

retail:
A. Inventory Tracking:
Inventory tracking monitors where a company's inventory resides in the
supply chain. Inventory tracking also provides a company with data on how
much inventory it owns, where its inventories exist, the status of its
inventories (damaged, returned, rejected, on hold) and it helps deter theft and
loss.

1. Electronic Data Interchange (EDI): Direct computer-to-computer

transactions from the store to the vendors' databases and ordering
systems rather than paper.
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2. Wireless hand-held inventory units: Scan inventory and download

the data to a database at headquarters. A wireless scanner is a handheld
electronic device used to scan a sticker containing a barcode. This helps
to keep a track of inventory through a database.

3. Universal Product Code (UPC): The database works through a

product identification system using bar code and unique numbering.

4. Automatic replenishment: Manages restocking of what's been sold.

There are now softwares available for businesses which can
automatically restock once you reach a specified level of stock. the
restock point for every product has to be defined and when the
minimum or lowest stock level of an item is reached, an order is made
to the suppliers to bring the stock up to its Restock Level, which is the
maximum amount. Softwares sold by ERPLY and skubana.

5. Virtual shelves: Intranets between retailers and vendors that expedite

communication and on-time replenishment.
A virtual inventory includes all of the products a store or business has
on hand, whether on a retail floor, in a back room or at a warehouse.
When a customer requests a specific product, one of the company’s
employees checks the inventory to see if the product is available and
determines its location. The employee retrieves the product or sends a
request for the product to be shipped to the store or customer’s house.
A virtual inventory lists not only all of the products currently in the
possession of the company, but also those the company can order from
other sources and in turn sell to the customer.

6. Lowes robots: The robot also performs real-time inventory tracking as

it cruises down the aisles. The information LoweBot gathers as it works
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is supposed to help identify shopping patterns at the location, so that

way the retailer can not only resupply its shelves but also get more
understanding of which merchandise moves more quickly, and during
which days of the week or seasons.

B. Customer Service:
Customer service is the provision of service to customers before, during and
after a purchase. Customer service concerns the priority an organization
assigns to customer service relative to components such as product innovation
and pricing.

1. Customer Relationship Management (CRM) software: Allows retailers

to track customers.

i. Lolli & Pops - Gourmet candy retailer Lolli & Pops uses facial recognition
to identify loyalty members as they walk into the store. CV then enables a
personalized shopping experience: by scouring scout their purchasing history
and preferences, the system can make personalized product recommendations
specific to each shopper. By treating them as individuals – and more
importantly, as VIPs – the system instills brand loyalty, and converts
occasional shoppers into regular customers. Both of which are good for
business.
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ii. Aurora by retail next - It is the first sensor designed specifically to meet
retail’s complex needs. It counts
in-store footfall traffic like so
many other sensors of its like,
but also adds texture to the data
– it includes the capture rate of
pass-by traffic, and breaks down
shoppers’ paths around the
store. That way, you can see
which promotions capture
engagement, and which turn customers off.
But it doesn’t just monitor the shoppers. It also adds customer and associate
interaction, providing real-time visibility into in-store service engagement.
Plus it can be used to drive personalized marketing and messaging campaigns.

2. In-store interactive kiosks: Provide customers with product details.

i. Hema’s QR codes - In-store, customers can scan QR codes on products to

get more information (including the exact date food items were harvested,
sourced, and delivered). Payment can also be made through the Hema app,
making shopping quick and convenient.

ii. 7 Fresh's autonomous shopping carts - One of the main features is its smart
shopping carts, which follow customers around the store (instead of having to
be pushed). This means customers can keep their hands-free, making it easy to
focus on looking after children and other personal tasks. The stores also
include ‘magic mirrors’ that sense when an item is picked up and then display
information about it.
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iii. Kroger’s digital price tags - In 2018, US grocery chain Kroger rolled out
digital price tag technology across hundreds of stores. Called ‘Kroger Edge’,
the tech digitally displays pricing and nutritional information, allowing the
store to instantly and remotely update it.

iv. LOWE’S LOWE BOT - One way

retailers plan are testing robots in stores is
to help customers find goods they are
searching for, like a rolling kiosk to look
up products and other information. Home
improvement retailer Lowe’s introduced
the LoweBot in 2016 at its stores in San
Francisco and plans to expand the trials in
2017 to stores in San Jose. Fellow Robots developed LoweBot in conjunction
with Lowe’s.
3. Smart registers/point-of-sale (POS) terminals: Print coupons and reports,
calculate frequent shopper discounts, capture customer profile information,
schedule work hours and serve as store-to-headquarters email terminals.

i. Amazon Go’s automated checkout - The Go stores use a combination of

computer vision, deep learning, and sensor fusion technology to automate the
payment and checkout process. This means that customers can enter the
store, pick-up items, and leave without queuing or checking out, while
payment is automatically made through the Amazon Go app.
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The Amazon Go concept store in Seattle tracks shoppers using CV, with
sensors on the shelves detecting when they pick up an item. It then registers all
the items in the shopper’s shopping basket with the Go mobile app, and does
away with the checkout process altogether – the shopper simply leaves the
shop, with the Go app taking the money automatically from the shopper’s
nominated credit card. The receipt is sent straight to the app.

ii. Zara’s self-checkout - While it’s standard in supermarkets, the fashion retail
industry has lagged behind when it comes to self-checkout service. This is
largely due to the process being made more complicated by security tags and
the like. However, Zara proved that it can be a worthwhile addition when it
introduced the technology in 2018.

iii. Target’s mobile wallet - Target launched a mobile wallet designed to make
payment and checkout a much faster and more convenient process. Users can
pay with their Target REDcard or credit card and as well as access and apply
discounts.

With purchase activity through apps on the rise, this kind of technology can
be a great way to keep up with consumer expectations and enhance loyalty.

4. Shopping experience :
Virtual reality is extensively used for a better personalised experience to the
shoppers and customers. VR & AR in Retail is becoming more and more
popular with giants such as IKEA and Lowe's starting to present the business
cases for it. Retail, especially retail's marketing area, seems to be a perfect
environment for the Virtual and Augmented Reality solutions
implementation.
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i. Mix and Match Any Outfit with the Magic Mirror - Customers would visit
the store and stand in front of the mirror. The mirror would then use AR to
scan the image of their face. Shoppers would then see their face with ten of
the brand’s iconic looks in under a minute — without physically wearing any
makeup.

Apparel brands have also used AR mirrors to let customers try products on
more conveniently. Timberland, for example, had a virtual fitting room
created with Kinect technology. They turned this fitting room into one of the
main window displays, which was a strategic move to drive more foot traffic.

ii. Audi’s VR showroom - In 2017, Audi launched a virtual reality experience

in global showrooms to offer a more personalised CX.The VR experience
allows consumers to configure their dream car, as well as explore the car’s
exterior and interior in realistic detail. The experience also includes special
‘Audi moments’, such as the Le Mans 24 Hours race, whereby users can
witness the pit-stop atmosphere.
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Through VR technology, Audi is able to offer consumers a dynamic and

interactive buying experience, transferring the process from a digital tablet to
something much more immersive.

iii. Nike’s Speed Shop - In 2018, Nike opened a flagship store in New York
City called the ‘Nike House of Innovation 000’.
Alongside customisation studios and instant checkout points, a stand-out
feature of the six-floor studio is the ‘Speed Shop’. This allows customers to
reserve shoes online to try on in-store. More specifically, customers can arrive
(through a dedicated entrance) to find a locker with their name on, which can
then be unlocked via their smartphone.

Mobile check-out is also available, meaning customers do not even need to

speak to anyone (let alone stand in a queue) if they want to buy the shoes in
question. The ultimate in convenience shopping.

iv. Sephora’s beauty hub - The ‘Beauty Hub’, which includes a virtual
lookbook as well as the brand’s Virtual Artist service. The latter allows
shoppers to get a ‘virtual makeover’ to test how different make-up will look
(without actually applying products). From this, Sephora employees are able
to offer shoppers a more professional and bespoke experience, powered by
technology as well as personal expertise.

v. Wannaby’s Wannakicks AR Mobile App for Footwear - Known as Wanna

Kicks,
Wannaby’s new iOS app utilizes augmented reality to allow consumers a
chance to virtually “try on” sneakers. To use Wanna Kicks, all users have to do
is log onto the app, pick a selection from a lineup of “3D models,” and then
point their phone’s camera directly towards their feet — that’s it. Once that
process is finished, you will then be “virtually wearing” a pair of sneakers.
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Users can also use the app to save a picture of their feet as they wear their new
digital footwear and upload it to social media. Wannaby believes its
technology can help both customers and retailers. The premise is simple: The
better idea you have of how a pair of sneakers will look when you’re actually
wearing them, the more
likely you are to make the
right purchase and the
less likely you are to
return an item.

C. Data Warehousing:
A data warehouse is a subject-
oriented, integrated, time-
variant and non-volatile
collection of data in support of management's decision making process.

1. Executive Information Systems (EIS): Produce graphs of complex data

that help retail executives make business decisions.
Executive information systems provide a tremendous shortcut in getting to
conclusions whether they are operations based or product based. They allow
the study of sales plans and actuals by store, product, supplier performance,
and examine sales operations. Executives can view gross margins and
markdowns by season/category/department/class or weeks of stock by store
or supplier. Management can monitor critical variables such as: check outs,
traffic conversion rates, reloads, sales and inventory contributions, sales and
inventory units per square foot, employee cost, and gross margin return on
investment.
Better understanding of customers – Data warehousing and analytics assist
retailers in getting a deeper look at the behavior of the customer, their preferences,
buying behavior etc. and use the insights for customized offers, contextual marketing
and even to plan the design and aesthetics of the stores.
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An EIS system will offer management a consistent work format and

exceptional reporting on opportunities and shortfalls enabling a corporate
officer to easily fine-tune business strategies. Top-level reports covering
product aging, sales trends, exceptions, highlights and low-lights, product
turns and performance trends are generated on a weekly basis. it gives a
current view of the status of your inventories, therefore the management can
prioritize markdowns and sales simulations based on an accurate knowledge
of your aging inventory by season. This speedy method of looking at the same
information can also be done on a month-to-date and year-to-date basis.
Again, all accomplished by simply double clicking and drilling down
throughout the product hierarchy starting from the category, department,
and class right down to best and worst styles.

Enhanced EIS systems will provide benchmarks alongside the current data so
it is known how the business is doing not only by sales actuals to plan, but
also by providing them with a variance to plan, and a variance to last year in
sales.
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In retail chains, Data warehouse is widely used for distribution and

marketing. It also helps to track items, customer buying patterns, promotions
and also used for determining pricing policy.

i. Amazon Redshift :

Amazon Redshift is an excellent data warehouse product which is a very

critical part of Amazon Web Services – a very famous cloud computing
platform.

Redshift is a fast, well-managed data warehouse that analyses data using the
existing standard SQL and BI tools. It is a simple and cost-effective tool that
allows running complex analytical queries using smart features of query
optimization.

It handles analytics workload pertaining to big data sets by utilizing columnar

storage on high-performance disks and massively parallel processing concepts.
One of its very powerful features is the Redshift spectrum, that allows the
user to run queries against unstructured data directly in Amazon S3. It
eliminates the need for loading and transformation. It automatically scales
query computing capacity depending on data. Hence the queries run fast.

ii. Panoply: The Smart Data Warehouse :

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is the only smart data warehouse that automates and simplifies all three key
aspects of the data lifecycle i.e. data integration, data management, and query
performance optimization.

Panoply allows you to ingest data from any source with just a few clicks. This
takes minutes not days, which means business users no longer depend on
IT/Data Engineering for ETL processes.

Data governance and security are built into the Panoply platform. Stored data
is protected from malicious attacks as well as common mistakes that humans
might make while accessing data. You can maintain full control over access
permissions for every user in your organization.

Panoply learns as you use it. Queries are saved, cached, and continuously
optimized, thereby saving your time across all your data analytics reporting
tasks. This means lightning-fast queries to fuel any BI tool or statistical
package.

With Panoply, you can get a data analytics stack up and running with just a
few clicks, thereby saving time, resources, and cost for any size business
operating in any industry vertical.
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III. The effect of technology on retail:

Think about it: You can now shop at Amazon on your phone, desktop, in a physical
store (with its $13.7 billion summer purchase of grocery chain Whole Foods), or by
summoning Alexa. Most shoppers flit back and forth between these various touch
points. A recent survey of 46,000 shoppers found that only 7% shop exclusively
online and just 20% shop only in stores.

The survey also found that retailers benefit by offering a seamless experience across
mobile, desktop, and in-store. Consumers who browse a retailer’s website spend an
average of 13% more in store, the survey found.

As consumers get more comfortable with digital, though, in-store traffic suffers. Last
November, for instance, store traffic fell 11.4% year over year, according to
consultant Retail Next. “One of the challenges that retailers have today is that people
stay home and shop,” said Dawn Burrows, senior program manager at Adobe
(CMO.com’s parent company). “The largest challenge they have is getting people
back into stores. One of the ways they’re doing that is bringing the digital experience
into the store.”

In-store technology is one way of bridging the gap, but online, mobile and other
consumer interfaces keep evolving, too.

IV. CONCLUSION :
The most exciting part of the implementation of Technology in Retail Business is
the fact that these technologies offer an entirely new dimension to work with. Sure,
all these technologies at the moment are barely extending and expanding the
traditional services in a variety of ways. But that’s just the beginning.  The current
speed of retail expansion and use of technology in the sector we may soon witness
something even more astonishing. Retail giants are expanding and are constantly
trying to improve the shopping experience for customers and I believe that tech will
drive the future of retail.
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Using technology does not guarantee a retailer's success; it is just one piece of the
puzzle. A retailer may use technology to manage merchandise flow, but if it stocks
merchandise customers don't want, its business suffers. So it should learn to
combine tech know-how with common sense, interpersonal skills, and problem-
solving.

V. References:

https://www.x-cart.com/blog/augmented-reality-retail.html

https://cmo.adobe.com/articles/2017/10/10-technologies-helping-to-
overhaul-the-retail-experience.html#gs.4zl3jz

https://www.monster.com/career-advice/article/retail-technology-trends

https://tekboost.com/blog/how-has-technology-changed-the-retail-industry/

https://www.zdnet.com/article/10-technologies-leading-digital-
transformation-in-retail/

https://econsultancy.com/examples-digital-technology-in-retail-stores/

https://www.retaildive.com/ex/mobilecommercedaily/10-ways-how-
augmented-reality-can-help-retailers

https://emerj.com/ai-sector-overviews/robots-in-retail-examples/

https://hackernoon.com/latest-retail-tech-trends-of-2019-xtzs3zr3

https://www.retailitinsights.com/doc/eis-systems-cut-time-provide-a-host-of-
benefi-0001