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The future of retail is smart stores

Shopping malls in the UAE are here to stay, however, the future of retail in the region lies in smart stores that offer carefully curated and memorable experiences for shoppers, experts have noted.
Speaking at a media roundtable on Wednesday, Mark Johnson, COO of Retailademy, said that there is a wealth of technology available today for retailers in the region to personalise the experiences of shoppers.
"Retail stores are not very different right now, compared to what they looked like a decade ago," he noted. "However, the main difference is how they have utilised technology to make things easier for their customers. This includes different payment options, online portfolios, and easy to use loyalty programmes."
However, Johnson, noted that there still lots of challenges in the industry that need to be addressed. "There are still limitations due to the fact that many retail concepts over here in the UAE work on a partnership basis; the constraints of the franchise model has slowed the pace compared to what we see happening in the industry internationally. Today, we are in the very first chapter of the digital revolution." Zaid Alqufaidi, managing director of Enoc Retail, also noted that customer behaviours have started to change, and with them, the way that retailers are operating. "There have been a lot of external factors that retailers have to take into account. Customers don't come to you anymore, you have to go to them; and the keyword today is convenience. If a task is not convenient, then it is not sustainable."
In addition, he pointed out that transformation has become a must for retailers in the industry. "The future of the industry is smart stores, and if you don't innovate, then you will evaporate." Patrick Falman, GM of Umdasch Shopfitting, also spoke about how retail has changed, noting that customers were placing a lot of emphasis on experiences. He noted that retail concepts had to focus on offering an experience that allows a user to properly interact with a product. "There is definitely more of a focus on online and social media marketing in the industry, but this can only get a retailer so far with their customers. Shoppers still like to come to a store and select a product that they like based on how it feels."
Scott Ellis, former programme director - Department Stores Expansion, Al Tayer Group, agreed and stressed that the focus for the future will be on creating memorable experiences that drive footfall in an increasingly competitive environment.
"A lot of retailers are looking at ways to seamlessly bring offline and online experiences together," he revealed. "One of the ways that they are doing this is through mobile applications. Shoppers today can enjoy applications that deliver their shopping bags to their vehicles so that they can continue to shop unhindered; there are apps that keep track and pay your parking fees; and there are also same day delivery services being offered at certain stores."
Falman also added that there is currently a lot of pressure on the retail industry in the UAE. Rents for retail spaces have to come down to allow smaller enterprises a chance to have a presence in major shopping centres. "A lot of SMEs cant afford a spot in shopping malls so they go to a place where they can - and this is the Internet. There has to be a balance that allows both big brands and SMEs a chance to operate in the same sphere." - rohma@khaleejtimes.com