Page 22 - Retail World March 2021

INDUSTRY INSIGHT FIVE GLOBAL TRENDS PREDICTED TO RESHAPE RETAIL ITGD Head of Insight on Innovations and Futures Toby Pickard outlines the major developments the organisation expects will alter the global retail landscape in 2021 and beyond. he food and retail industry has adapted rapidly to unprecedented challenges over the past year. Covid-19 has significantly changed some basics of modern retail and accelerated digital transformation. With this in mind, here are five trends set to impact retailing this year. 1. System upgrade: digitally enhancing operations The pandemic has accelerated retailers’ and shoppers’ digital awareness and capabilities. Numerous companies have been testing and learning from new digital initiatives, and in 2021 companies will need to move beyond just testing and learning to improving and implementing at scale. Digital transformation will require new leadership and a fresh cultural mindset as companies create flexible and agile ways of working. Successful retailers will introduce digital technologies that involve low capital investment and are easy to update. We expect to see many retailers partnering with third party technology providers to ensure they can implement new technologies quickly. We also expect to see more retailers using artificial intelligence (AI) and machine learning at store level to drive revenue and increase customer satisfaction. More than three-quarters of large retailers around the world either have AI systems now in place, or plan to install them before the end of this year. To truly capitalise on the advantages of AI, there will be a greater need than ever for retailers and manufacturers to share data and work together on shopper-focused initiatives. What we expect in 2021: • Introduction of digital technologies that involve low capital investment and are easy to update. • Partnerships with third-party technology providers to speed up new tech introduction. • More use of machine learning and AI at store level to drive revenue and increase customer satisfaction. 20 RETAIL WORLD MAR, 2021