THE FUTURE OF RETAIL: IN-STORE EXPERIENCE

BUSINESS INSIDER INTELLIGENCE

PROVIDING IN-DEPTH INSIGHT, DATA, AND ANALYSIS OF EVERYTHING DIGITAL

 Brick-and-mortar is still the dominant driver of retail spend in the US

Channel share of US adjusted retail Estimated 2019 US retail sales by method,

billions ($)
E-commerce Offline retail 54
126
390

Other
91.3% 91.0% 90.8% 90.6% 90.4% 90.2% 90.0% 89.9% 89.5% 89.2% 88.2% Smartphone
4,845
PC
In-store

8.7% 9.0% 9.2% 9.4% 9.6% 9.8% 10.0% 10.1% 10.5% 10.8% 11.2%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019
2017 2018 2019

Source: Business Insider Intelligence estimates, US Census Bureau, PYMNTS, Criteo, eMarketer,
CPC Strategy, Worldpay, Digital Commerce 360, comScore
 But in-store sales aren’t growing fast enough to keep the doors open

Total announced store closures in the US

9,271

7,800

6,100
5,500
5,100
4,400
3,900
3,100
2,600 2,800
2,500 2,400
2,100
1,700 1,800
1,300

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
YTD

Note: 2019 closures are as of November 29, 2019.

Source: Business Insider, CNBC, USA Today, Credit Suisse, Yahoo Finance, Coresight Research
 A major focus point for retailers is in-store product discovery

Example customer journey

Store layout
Personalized
and
experiences
appearance

Data
collection

Source: Dunnhumby, Business Insider Intelligence

 And there’s a bevy of technologies retailers can consider to help
High

Real-time store
monitoring platform
Size Of Business

Automated in-store Mobile augmented Autonomous inventory Algorithmic

order collection reality that presents management and merchandise
Impact

product information cleaning robots optimization

Blockchain-driven Customer-facing in-

store self-service Unified merchandise
product histories planning
applications
Low

Virtual reality retail Augmented reality in-

experiences store product try-ons

Research Assessment Trialing Mainstream adoption

(Early days of testing) (Tested in a fraction of
stores)

Industry Uptake

Source: Gartner, Business Insider Intelligence

 Of those on the cusp of mainstream, a few technologies hold the most
High promise

Real-time store
monitoring platform

Autonomous inventory
Size Of Business

Automated in-store Mobile augmented Algorithmic

reality that presents management and merchandise
order collection
Impact

product information cleaning robots optimization

Blockchain-driven Customer-facing in-

store self-service Unified merchandise
product histories planning
applications
Low

Virtual reality retail Augmented reality in-

experiences store product try-ons

Research Assessment Trialing Mainstream adoption

(Early days of testing) (Tested in a fraction of
stores)

Industry Uptake

Source: Gartner, Business Insider Intelligence

 Robots can be used to keep aisles clean and well stocked

Example Example

• Bossa Nova Robotics’ • Brain Corp’s robots were

signature device is being planned to be in 1,860
deployed in 350 Walmart Walmart stores by
stores. February 2019.

• Can scan aisles with 94% • Without Auto-C, store

accuracy. Industry associates have to
Robots can manage average for inventory- spend 2 hours per day
inventory tracking, ensuring Robots can keep stores
scanning accuracy in-store clean, facilitating longer cleaning floors.
that products are on shelves is 88%.
for customers to find. customer visits, which aids
product discovery.

Source: Walmart, Bossa Nova, Brain Corp., ARC as cited by Forbes

Store-monitoring tools can
also have a big impact on
the shopping experience
 Shopper data can be collected in many ways

Example technologies for capturing customer data

In-store tracking In-store recognition

Camera Beacons and Facial Required logins Voluntary Apps

networks geofences recognition + at cashierless Wi-Fi logins
cameras stores
 And better data can improve aspects of the store experience, like
advertising and store layout

Ads

Store layout

Info used for

different
purposes
Consumer Location and Data gathered
moves around actions are Product
from shopping
store tracked selection
behaviors
The shopping data creates a virtuous cycle, as each shopping visit generates
insights that improve the next

Consumer Locations/
begins actions
shopping tracked

Ads/product Data
selection/ gathered
store layout from
tweaked shopping
behaviors
 Finally, technologies
like sensors, data, and
robots can make stores
easier to browse
But technology can also help stores take advantage of
brick-and-mortar’s greatest differentiator: human
associates
 Employees armed with devices are better equipped to answer customers’
questions

51% 56% 74%

of shoppers feel they are of associates agree of associates say tech-
better connected than in- consumers are better equipped associates
store associates. connected. would improve customer
service.

Source: Zebra, n=5,000 global shoppers; n=1,000 global retail associates, 2019