Study: Retailers worried about keeping up with change
Global retailers of all sizes have significant concerns over their ability to keep pace with new technologies and shifts in consumer behavior.
That’s according to a new report from Oracle Retail in which 60% of respondents said they believe that their organization will likely face disruption from more innovative, nimble and customer-centric organizations. While retailers believe their company embraces digital and mobile technology, 60% recognize that they are not investing quickly enough to keep pace with the speed of technology change and consumer expectations.
The trends identified in the “2018 Retail Mobility Insights Report” highlight that retailers have been slow to realize mobile's potential and question their logistical capabilities in the countdown to the busiest sales cycle of the year.
"Despite a strong improving sales performance, retailers continue to feel overwhelmed by their infrastructure limitations, decision paralysis has further prevented them from realizing their omnichannel potential," said Mike Webster, senior VP and general manager, Oracle Retail. "Having a single view of customer, inventory and order is no longer optional for retailers to deliver their brand promise. Organizations that complete this journey first will create stronger relationships with customers, create space for new innovation projects and make more strategic decisions that maximize their growth."
The study also found that retailers seem to have reached a general consensus around the role of mobile technology and opportunity for capturing sales and removing friction from the purchase experience.
Among the report’s insights:
• Retailers affirm (47% agree) that their mobile strategy is to increase shopping basket size in store and online by catching customers at the point of intent.
• Mobile also is impacting associate productivity, with 45% of respondents empowering employees with mobile capabilities so they can perform their jobs regardless of where they are.
• New payment options like contactless checkout, self-checkout and mobile payments are either in use today or part of roadmaps for 54% of retailers. Hardline retailers (less than 32% disagree) seem to be behind grocery and fashion brands (over 55% agree) in enabling these new payment options.
• New policies around data privacy have impacted retailers' growth potential, with 62% believing that they may be leaving money on the table by offering general discounts to shoppers instead of tailored offerings.
• Less than half (46% ) of retailers believe they are well positioned to support an omnichannel shopping experience with distribution centers to fulfill orders placed online or through mobile for delivery to any preferred destination.
• Logistical confidence increases with the size of retail organizations — 67% of respondents from organizations with more than $10 billion in sales and 52% of respondents from organizations with $1 to $10 billion in sales note this capability.
• Conversely logistical doubt trends towards major growth milestones, only 38% of respondents from organizations with $250 to $500 million in sales and 30% of respondents from organizations with $750 million to $1 billion believe they are well positioned.