Report by Aruba shows retail sector to double down on technology in 2023

New predictions from Aruba, a Hewlett Packard Enterprise company, revealed at NRF 2023, detail how retailers will leverage technology to get ahead of evolving customer demands and operational challenges over the next 12-18 months.

Customers will be pickier with their spending in 2023 due to the uncertain macroeconomic situation and increased consumer demand for increasingly individualised brand treatment. Retailers will need to provide flexible, personalised shopping experiences as they compete for customers’ wallet share to draw in new customers and maintain existing ones who purchase both online and in-store. IT staff will have a difficult time keeping up with the rate of technological advancement and ensuring the smooth operation of the business.

Aruba collaborated with the global trends agency Foresight Factory to identify five ways that the retail experience will change in 2023 and the ramifications it will have for the IT teams and networks responsible for delivering them. This was done to assist retailers as they ring in the new year. The results offer a convincing case for a more adaptable and agile network consumption model, like Network-as-a-Service (NaaS), to relieve some of the pressure on the network and IT team, enable greater scalability, and aid in the delivery of a networking solution that is more business outcome focused.

1. Retailers Bring Immersive Digital Experiences to In-Store Shoppers 

As retailers fight to re-engage customers with physical spaces, they will look to invest more in technologies to deepen and differentiate the immersive experience of in-store shopping trips. Expect AR and VR that allows shoppers to get a better feel for how products will fit into their lives before they reach the point of sale to become fully embedded in a retailer’s user experience (UX).

2. Delivery Options Become More Disparate and Diversified 

Consumer expectations for on-demand, time-shifted, and location-flexible delivery options are rapidly growing. Retailers and grocers will take an increasingly hybrid approach to fulfilling orders, offering up traditional delivery solutions alongside dark stores, micro-fulfilment centres, grab-and-go “pop-ups”, and on-demand couriers. The use of enhanced geolocation services and even mobile stores will give retailers the chance to bring the point of sale directly to the consumer’s home or place of work.

3. In-Store Smartens Up to Drive Delight and Efficiency 

Due to the more sophisticated competition offered by e-commerce, in-store environments will be redesigned with an emphasis on both improved consumer pleasure and personalisation as well as more effective business operations. Physical stores will become more networked, with customer-pleasing innovations like cashiers exits and smart fitting rooms, while Internet of Things (IoT) sensor capabilities will offer real-time information to support operational savings and sustainability goals.

4. Intelligent Inventory Insights Will Maintain Consumer Loyalty 

In today’s age of instant gratification, consumers expect retailers to deliver what they want when they want it – with any deviation from what has been promised not tolerated. Expect a surge in automation and predictive technologies to help more accurately track inventory and meet consumer demands in real time. Smart robots deployed in warehouses and distribution centres will also make operations more intelligent, shifting made-to-order retailing into the mainstream, and reducing waste and excess inventory as a result.

5. Showrooming Turns to Streaming 

As firms work to develop the next stage of showrooming, which gives customers a peek behind the scenes, live streaming from real stores will become increasingly widespread. Delivering such experiences would help shops make the most of their remaining physical areas and satisfy consumer needs for a local touch.

Gerri Hinkel, Director, Solutions and Vertical Marketing, Aruba said “Whether it’s immersive experiences, live streaming, or new delivery methods, the technology requirements for retailers are becoming denser and more complex as they continue to battle for business. And while vital, new and modern technology will be dependent on having the right infrastructure to support it. In the face of continued change, retail companies need predictability and confidence in knowing their network can flex to meet evolving consumer demands and that their IT teams won’t fall under the burden of continued digitization.”

She added “To achieve this, retailers need to reconsider their network approach – looking at alternative consumption models like NaaS to ensure that they not only have the agility to adapt as demands change, but are set up with a high-performing, secure, reliable, and automated network that can support all this technology and leverage real-time insights to facilitate new customer-facing and smart store initiatives.”