Remarkable technological innovations will predominantly drive the next ten years of retail convenience.
These advancements will transform the way forward-thinking businesses operate, with consumers becoming increasingly dependent on the efficient and reliable outcomes they produce. However, it is not enough to only watch a handful of industry leaders implement big new ideas. All retailers must take action to create the future in which we want to thrive. Of course, upgrading technologically requires resources and the know-how to implement – an understandably daunting task for the majority. However, the most challenging part of starting a new journey is simply taking the first step. Without the courage to travel this road to greater convenience, we could expect to see a seismic shift in the retail landscape, with once familiar household names falling into obscurity.
No longer science fiction
If you think the last ten years are technologically impressive – the next ten will astound you. Consider that the smartphone barely existed a decade ago, never mind the concept of ordering your same-day groceries with a palm-sized computer. Critically, the speed of these tech-driven developments is increasing year by year. Meaning the next ten years will reveal advancements far beyond that of the last ten. This exponential rise of computing power, combined with progress in data analytics, automation and artificial intelligence, is transforming the world in an ever-shortening timeframe. It is, therefore, our responsibility as retailers to continually change the way we think about applying technology to our businesses. Just as consumers won’t give up their smartphones today, they will not give up their reliance on the new convenience-focused technology of tomorrow.
Defining the new convenient
Previously, most people would have classified retail convenience as having a narrow meaning, like nearby store locations or flexible opening times. But the world is changing fast, and consumer demands are more complex than we are accustomed to. For most shoppers, the new convenience will include all the ‘new normal’ solutions of e-commerce platforms, click-and-collect, and scan and go, for example. Yet, these innovations are merely the beginnings of this new journey. At Majid Al Futtaim, Automated Fulfilment Centres, Autonomous Mobile Robots and Automated Checkout-Free Shopping are already becoming mainstream elements in our Carrefour offering – in addition to the adoption of Blockchain technology and artificial intelligence. As more and more consumers experience the convenience delivered by these technologies, they too will come to depend on them in the new retail landscape.
If you fail to plan, you are planning to fail
Fuelling growth is the name of the game. Indeed, the global retail automation market is predicted to surpass USD19.5 billion by 2024. This represents a significant convenience-driven market in the retail space — one in which consumers will become quickly accustomed to new automated ways of shopping. Retailers must not fear the cost and upskilling required in overhauling operations. Convenience driven by technology will manifest differently for each retailer, some with large transformations, others small. However, we must understand that consumer loyalty is a complex concept of which convenience is a central element. Fail to deliver on this ingredient, and the recipe is destined for failure. Capture your customer’s attention and deliver on their needs, and the multi-billion-dollar global retail automation market is ripe for new leaders to rise and prosper.
The road to revolution
Convenience now pervades every part of our life and lifestyle. Like Amazon, Tesco, Walmart, and others, Majid Al Futtaim takes this call to action as a core strategic requirement. We see it as our responsibility to address future needs in our increasingly convenience-driven society. By reviewing processes that can be performed more effectively and accurately by machines instead of humans, we are identifying new and exciting ways to upgrade our business. This will often require replacing low-level, redundant, and time-consuming (not to mention tedious) tasks with technology created with automation at the core. The e-commerce sector particularly will be revolutionised, from inventory management to delivery and everything in between. Our employees are then set free to pursue more fulfilling and satisfying roles within the company. Customers will enjoy greater convenience and less friction; stakeholders and suppliers see their interests satisfied, while the company overall becomes more profitable.
The new retail experience
Majid Al Futtaim’s latest step toward greater convenience is our new check-out free Carrefour City+ store. Benefiting from state-of-the-art technology, Carrefour City+ offers a seamless shopping experience with convenience at the core. The store is accessible through a QR code generated by the Carrefour App on any smartphone device. Artificial Intelligence detects each product that customers pick and updates their baskets virtually as they shop. The amount is automatically charged to the credit or debit card linked on the app, and customers receive a payment receipt upon simply leaving the store through their phones without having to stop to pay at a check-out counter. To remove an item from the virtual shopping basket, customers can simply place the item back on the shelf it was picked from. We believe these exciting innovations will become a standard expectation for customers as the convenience culture gains mainstream momentum. Indeed, we are already witnessing swift adoption of this new shopping experience in our Dubai-based concept store.
Not if but when
Ultimately, technology is part of our humanity. We are inseparable, and as time marches on, we will only become more connected and more dependent on our machines. Therefore, the identification of long-term trends in this domain must be at the forefront of our minds from this moment forward. The future will not wait for us – it is our responsibility to envision the upcoming convenience-driven reality and work diligently towards that ideal. As retailers, our job is to act with integrity and foresight to bring this future into the present. If we succeed, the next ten years will indeed become the foundation for a very bright, exciting, and innovative industry.
