In today’s fast-paced and ever-evolving retail landscape, success hinges on innovation, efficiency and adaptability. Dell Technologies recognizes that the intersection of cutting-edge technology and changing consumer behavior is paving the way for new opportunities and challenges in the retail sector. As IT decision makers in the retail industry, it’s crucial to stay ahead of the competition by leveraging the power of enterprise computing and data-driven insights.
The National Retail Federation forecasts robust retail sales growth in 2023—between 4% and 6%, with total sales projected to reach between $5.13 trillion and $5.23 trillion. This impressive growth rate exceeds the pre-pandemic average, signaling a thriving retail industry. However, with growth comes challenges, and retailers must harness technology to address two primary obstacles of enticing customers back into physical stores and improving on-site operations and lowering operational costs.
Dell Technologies helps retailers take advantage of the latest technologies to deliver hyper-personalized experiences to their customers, improve operations and lower cost. Specifically, retailers can deploy on-site edge computing solutions in individual stores to process and analyze real-time data from sensors, cameras and point-of-sale systems. Dell’s edge computing solutions enable retailers to seamlessly capture data at the edge and transform it into actionable insights.
Personalization Drives Customer Engagement
In a competitive market, winning the hearts and minds of customers is paramount. By harnessing the power of data analysis, artificial intelligence (AI) and machine learning (ML), retailers can hyper-personalize interactions. Studies show that shoppers are more likely to make a purchase when brands offer personalized experiences. Through tailored recommendations, personalized offers and customized experiences, retailers can foster deeper customer engagement and loyalty, ultimately boosting sales performance.
Omnichannel Retailing
The COVID-19 pandemic accelerated online shopping trends. However, luring customers back to physical stores remains essential to retailers’ success, as customers are more likely to “impulse buy.” With omnichannel strategies, retailers can seamlessly integrate their physical and digital channels. Customers can place more “buy-online pick-up in-store” (BOPIS) orders efficiently, leading to increased sales.
Optimizing Inventory Management
Reducing nil picks—instances when online orders are out of stock upon pickup—is vital. Advanced inventory management systems with real-time updates and predictive analytics allow retailers to accurately forecast demand, minimize nil picks and improve order fulfillment accuracy.
Enhancing the Mobile Shopping Experience
Mobile commerce has reshaped retail by offering convenient purchasing options and personalized recommendations. AI-powered product recommendations and dynamic pricing strategies can increase sales. Mobile technology also empowers store associates to access real-time inventory data, process transactions and provide personalized service, enhancing the overall customer experience.
Seamless Returns Instill Customer Trust
Streamlining the returns process is critical for fostering customer trust and loyalty. Automated return management systems can reduce return rates by providing hassle-free return experiences. Combine this with user-friendly, mobile-enabled applications, and employees can interact with customers confidently—with intelligent upselling and via a seamless returns process.
Improving Operations and Lowering Costs
Shrinkage costs retailers an estimated $61.7 billion annually. Technology, including computer vision applications and AI-powered inventory management, can address these challenges. Automated inventory management systems improve turnover rates by 20% and reduce manual errors. AI-driven solutions minimize overstocking and reduce the risk of markdowns and waste.
Augmented Reality and Virtual Reality
Retailers can sell on value rather than price by implementing augmented reality (AR) and virtual reality (VR) solutions. AR and VR solutions allow customers to experience a product and see its benefits before committing to purchasing it. These immersive experiences can increase sales conversion rates by elevating the perceived value of products.
Success Begins with the Right Infrastructure Technology
To navigate the rapidly changing retail landscape successfully, modernizing the IT infrastructure is paramount. Retailers must invest in scalable systems, cloud-ready computing and robust cybersecurity measures to run their evolving technology. Integration of on-premises edge computing solutions on a per-store basis is critical for real-time operational workloads and data utilization. Dell Technologies’ portfolio of edge and hybrid cloud solutions supports the applications retailers need to be successful. Tailored to address the unique needs of retailers, these infrastructure solutions prioritize data security and allow for scalability, simplified deployment and flexible acquisition options.
In an era of digital transformation, retailers must harness technology to enhance profitability, improve operational efficiency and deliver exceptional customer experiences. Dell Technologies offers a comprehensive package to empower retailers in their journey towards success. By embracing advanced technological solutions, retailers can unlock their full potential and position themselves for sustained growth in an increasingly digital world. Update your technology today to stay ahead of the curve and drive success in the retail industry.
Learn more about our market perspective on the retail edge.
Read our infographic, “Transform the Customer Retail Experience with data-driven edge insights.”
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