The retail industry is no stranger to experiencing hardship during tumultuous economic times. With a potential recession looming, retailers of all sizes will have to navigate a market downturn. Rising inflation resulted in higher costs for key necessities like food and clothing, prompting consumers to take a more mindful approach to spending their money.
Although economic declines often cause industries like retail to take a hit, a McKinsey report shows that modern consumers are not cutting back on their overall spending habits; rather, they’re opting to shop in brick-and-mortar stores as opposed to online. In fact, 87% of retail sales are generated in stores. Uncertainties in the market present retailers with a unique opportunity to strengthen brand loyalty among new and existing customers, which is why enhancing in-store experiences and alleviating operational challenges is absolutely critical. Here are some ways retailers can reimagine their brands.
Meeting Rising Customer Expectations
In the wake of the pandemic, shoppers are returning to stores in droves, but they are increasingly more skeptical of brands. In fact, a 2022 study from PwC revealed that over a quarter of respondents (26%) said they stopped purchasing from a specific brand in the last year.
Now more than ever, retailers must meet the evolving needs of customers by mirroring the quality of service they deliver at brick-and-mortar locations as they do online. This is especially the case for younger shoppers that demand fast access to products and want brands to remember their purchasing habits, whether they’re shopping on their computer, phone or in person.
Installing display technology in stores enables retailers to meet customer needs by providing shoppers with real-time updates on inventory and underscoring the value of these products. In addition, displays can also help retailers struggling with staffing shortages to reduce common issues like long store lines as the automated capabilities of a kiosk allows customers to seamlessly complete transactions.
For example, when BurgerFi, a fast-casual restaurant, installed kiosks to streamline ordering processes, meet labor requirements and increase sales, the restaurant experienced immediate value. The technology enabled staff to enhance customer service by supporting operations. This included food preparation, helping to strengthen throughput and accelerate customer transactions.
Taking Customer Experiences to New Heights
Although daunting, a recession can accelerate digital transformation among retailers as they look for new ways to maintain sales and enhance engagement with customers. Digital signage helps stores achieve this goal, as they can showcase a brand’s differentiators with personalized visuals that educate customers and create more meaningful, immersive connections.
Furthermore, these technologies have the capability to delight a customer’s senses by stimulating visuals, sounds and smells, enabling them to feel more immersed in the store. For example, when a shopper visits a clothing store, displays can draw their attention to seasonal inventory by featuring different outfit combinations and variations on the screens based on the daily weather forecast.
Related: Digital Signage: A Complete Guide
Likewise, in pet stores, a smart digital signage display’s audio capabilities can emit chirping sounds as customers visit the birdfeed aisle, enticing them to try products that they otherwise might not have noticed. Integrating sensory technology in a grocery store like bread in the bakery section also drives demand to buy fresh goods, eliminating food waste and driving sales.
No matter what type of store, integrating cutting-edge display technology drives greater education among shoppers. Additionally, the positive interactions they have are more likely to drive sales for the business.
Shaping the Future of Brick-and-mortar Stores
Brick-and-mortar stores have garnered an unfavorable reputation of being antiquated in comparison to their e-commerce counterparts. However, employing technology in stores profoundly impacts the way customers perceive in-store shopping. In addition to grabbing a customer’s attention, visual displays educate them about specific products. This is crucial as consumers want more transparency about the brands they’re buying and where products are sourced.
Similar to how customers can read a description online, digital signage has become the cornerstone of safety, inventory and pricing updates for in-person shopping experiences, updating customers almost instantly. Moreover, using features such as digital ads on displays can help reach customers at every moment of the buying journey and enables retailers to receive measurable insights about their consuming habits and potentially upsell relevant goods.
Bringing in Kiosks
Retailers increasingly use kiosks to deliver greater convenience for both employees and consumers by streamlining transactions as well as the search process for in-store merchandise. In fact, a report from Contrive Datum Insights revealed that the interactive and self-service kiosk market is expected to grow at a compound annual growth rate (CAGR) of 7.1% this year and was valued at $28.45 billion in 2022.
Kiosks will increasingly allow customers to place orders in lieu of speaking with a sales associate or cashier, reducing in-store lines and introducing them to more products through screen advertisements in a matter of moments, saving them time and maximizing their convenience.
Looking to the future, the talent shortages that retailers face are likely continue. However, display technology will give store owners and managers the power to reallocate employee resources to fill workforce shortages, ensuring that customers receive quality service.
In a wavering market, retailers must be prepared to adapt their in-store operations to remain viable and maintain a competitive edge. By installing best-in-class digital signage, stores can save time, increase profit and strengthen customer loyalty.
Parrish Chapman is senior director, enterprise retail sales, key accounts at Samsung Electronics America.
