3 Retail Stories Worth Reading from the Last Week (or so)
Welcome to your weekly mélange of retail news! This is where we look at the previous week (ish) of retail news, events, and activities to hopefully enlighten your day with a story that may have fallen through the cracks.
Tech is Transforming Experiences in Retail
‘'Hyper-personalization, making every sale both in-store and online, a unique experience for every consumer in a way that relates to their needs, will become ever more important every day. That level of personalization will be more easily accomplished as artificial intelligence technology develops. There will be more AI everywhere as it works its way into retailers’ strategies."
JWT recently released 'Transcendent Retail’— a study that provides a thorough overview of the future of shopping and how technology is transforming the retail experience. Consumers want positive store experiences, which are incredibly important drivers in consumer discretionary spending. That being said, retail today is 'more about using technology to sell the right products in the right way,’ to hopefully improve on these experiences in order to compete against the likes of Amazon. According to the study, '37% of all online global spending is done through Amazon and 89% of US millennials check Amazon first… each time they make an online purchase.’
Amazon's Seller Flex Program
via Retail Dive—
Amazon’s…approach signals a rising reliance on data and vertical integration by retailers. At the same time, it also shows the need for managed services by those companies lacking Amazon’s resources. The news is further evidence that last mile logistics and optimizing the supply chain are top of mind for retailers right now…’
With ‘Seller Flex’ Amazon is piloting a new delivery service component where it would transport vendor packages to customers’ homes directly from a warehouse. Not only would this increase the number of Prime Goods and free up warehouse space, but it will also help optimize its logistics chain, reduce costs and expand 2-day delivery around the country.
The Future is AI
‘I don’t think that every frontline manager needs to understand the difference between deep and shallow learning within a neural network. But I think a basic understanding that—through the use of analytics and by leveraging data—we do have techniques that will produce better and more accurate results and decisions than gut instinct is important.’
BCG and MIT Sloan Management Review created a report to help executives understand the role of AI in their business and adoption of it in various industries. Here are some of the most interesting findings from its survey of 3,000 global executives:
- 20% of firms have, ‘incorporated AI into some offerings or processes…’
- Close to 85% believe that AI will provide with them with a competitive advantage
- 60%+ stated that an AI strategy is, ‘urgent for their organizations’, but only half of these firms have a strategy in place
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