ACCORDING TO A RECENT RED ANT SURVEY , 68 % OF RETAILERS CLAIM PERSONALISED SERVICES IS THEIR KEY DRIVER FOR RETAIL TECH INVESTMENT IN 2023 .
INDUSTRY WATCH
ACCORDING TO A RECENT RED ANT SURVEY , 68 % OF RETAILERS CLAIM PERSONALISED SERVICES IS THEIR KEY DRIVER FOR RETAIL TECH INVESTMENT IN 2023 .
Despite slowdown in the European economy , there are indications that the retail tide is turning . There ’ s an appetite for retail expansion , with major retailers , such as Sephora , opening new stores across the continent . According to Savills , luxury store openings in Europe are up 77 %, with Europe ’ s global share of new store openings climbing to 23 %, ranking it ahead of North America and second to China .
As the pressures on retail CIOs and leaders in Europe are evolving , new tech is emerging and customer expectations are changing . Many factors must line up for retail success and retailers are sharing and learning from each other , with strong trends developing rapidly over just a few years . Technology is driving the ongoing digitalisation and simplification of the retail industry , as well as showing up nonadopters who often fail to keep up .
Despite the chasm widening between those retail brands doing it well and not so well , leaders and laggards alike share common challenges , goals and perspectives , one being the widespread acceptance that technology plays a central role in retail success .
Pressures on retailers across Europe
The early 2020s presented health , war and challenging economic conditions that impacted retailers across Europe . Different retailers suffered different challenges due to their category and the state of their digital commerce business . Some retailers survived by adapting to circumstances and introducing new ways of connecting with the customer , such as virtual consultations and ‘ dark ’ stores which offered kerbside pickup . There was a clear need to pivot tech development to support ‘ safe ’ retail . Strategies included in-store booked appointments , footfall management and creating opportunities for staff to work remotely .
“ The Ukraine war is still ongoing which has had a knock-on impact to the whole region ,” said Oliver Banks , Retail Transformation Specialist . “ Ukraine was responsible for a huge volume of raw materials flowing into Europe for production and ultimately into the retail industry . Consumers have returned to in-store shopping , shown signs of changing behaviours due to financial pressure and they are ‘ tightening belts ’ across all categories , yet they are also showing signs of investing in moments or products of luxury . Retailers are facing increased costs on multiple fronts , including energy , labour , distribution and raw materials .
Hyper-personalisation is also a key driver for retail strategies this year , driven by tech innovation and increasing customer expectation that retailers know who they are , their history and preferences . According to a recent Red Ant survey , 68 % of retailers claim personalised services is their key driver for retail tech investment in 2023 .
But the rising trend of personalisation in retail has also placed greater pressure on retailers to transform their capabilities to stay competitive . Red Ant ’ s survey revealed that personalising the customer experience is the biggest challenge for 30 % of brands .
Changing customer expectations in Europe
As the cost-of-living crisis continues , consumers are looking to make savings and for more personalised deals . There ’ s an increased trend for shopping across many channels , with a shopping mission increasingly having one or more digital elements included . Customers expect their shopping journey with a brand
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