{"id":13205,"date":"2022-10-24T15:06:04","date_gmt":"2022-10-24T18:06:04","guid":{"rendered":"https:\/\/frogmi.com\/index.php\/4-in-store-technology-trends-that-are-shaping-2022\/"},"modified":"2026-03-12T12:23:21","modified_gmt":"2026-03-12T15:23:21","slug":"4-in-store-technology-trends-that-are-shaping-2022","status":"publish","type":"post","link":"https:\/\/frogmi.com\/en\/blog\/4-in-store-technology-trends-that-are-shaping-2022\/","title":{"rendered":"4 in-store technology trends that are shaping 2022 \u2192<\/span>"},"content":{"rendered":"
\n[vc_row][vc_column][vc_column_text]Source: https:\/\/www.retaildive.com<\/a>\n

A return to brick-and-mortar locations is pushing retailers to be innovative as they juggle customer experience with labor efficiency.<\/h3>\n \n\nWith the wave of COVID-19 pandemic restrictions and store closures at its end, 2022 has largely meant a return to brick-and-mortar retail.\n\nGiven the pullback in e-commerce spend and retailers losing sales amid inflationary pressures, overall technology budgets might not be at the height they once were. This leaves in-store innovation in a predicament.\n\nGlobal retail technology investment dropped 43% to $13.2 billion in Q2 2022 compared to about $23 billion in Q1 2022, according to a report from CB Insights in July. Additionally, retail tech deals were down 21% quarter over quarter, and only seven companies went public compared to 11 in the previous quarter.\n\nHowever, in-store technology and innovation aren\u2019t exactly dead. Shoppers may have eased their online buying habits to a degree, but brick-and-mortar stores aren\u2019t immune to the longevity of digital transformation. In fact, the store management technology sector saw an increase in funding during Q2 with a 25% quarter-over-quarter bump to $3 billion compared to $2.4 billion in Q1, according to CB Insights.\n\nRetailers can still benefit from innovating with convenience and might want to look at in-store personalization to differentiate themselves in the market, according to a Deloitte report from Rob Harrold and Adam York.\n\nWhat types of technology brought convenience and personalization to the in-store experience this year? And which ones have the potential to stick around?\n\n \n

1. BOPIS<\/h2>\nBuy online, pick up in store services continue to be sought after even as pandemic restrictions have waned. In March, data from Insider Intelligence predicted that U.S. shoppers will spend $95.87 million on BOPIS this year \u2014 a 19.4% increase year over year.\n\nBOPIS, which is sometimes known as click and collect, seemed like a win-win during pandemic restrictions, as shoppers could support physical brick-and-mortar stores without having to spend time in closed public spaces.\n\nThe holidays have the potential to show BOPIS\u2019 strength. This season 39% of shoppers expect BOPIS to account for 50% or more of their shopping, according to a report by Bluedot shared with Retail Dive.\n\nThat said, overall interest has somewhat decreased since 2020. About 78% of shoppers plan to use BOPIS in some regard this season, which is down slightly from 81% in 2020, according to Bluedot.\n\nNot all consumers are more likely to use the option though. Millennial males in urban environments are more likely to use BOPIS, according to data from Morning Consult. Shoppers in higher-income households are also more inclined to use this purchasing option.\n\nWhile several retailers added BOPIS and have reported positive results from the service \u2014 including Target, Sally Beauty and Office Depot \u2014 others are just now jumping on board. Five Below last month released its own buy online, pick up in store program.\n\nBOPIS requires technology or a system that makes it efficient and successful for all parties involved, which is something many retailers are focused on.\n\nRetailers are \u201cstarting to think about productivity, efficiency and cost that is top of mind for everybody,\u201d Lokesh Ohri, a principal in Deloitte\u2019s digital practice, told Retail Dive. \u201cBuy online, pickup in store and all the tech involved around doing that efficiently at the store level, either picking front of house or backup backroom \u2026 has stuck around and is scaling pretty fast.\u201d\n\n \n

2. QR codes<\/h2>\nThat weird little black-and-white square that looks like a Rorschach test? Yes, retailers \u2014 not just restaurants \u2014 are using those.\n\nQR codes are square barcodes that can be scanned using mobile phone cameras to be directed to more information or payment portals. The technology was actually invented decades ago, but quickly garnered adoption during the COVID-19 pandemic when menus and person-to-person payments were pushed aside.\n\n\u201cIt\u2019s become ubiquitous in the market,\u201d Ohri said. \u201cBut if you and I were speaking seven years ago, there wasn\u2019t this big hype about QR codes.\u201d\n\nQR codes have the potential to be a way in which customers can discover more information about a product, according to Ohri, who added it \u201cgives them better insights into buying that product, into making that decision and into comparing information across other products.\u201d\n\nIn January, Walmart launched an interactive store prototype at its incubator location in Arkansas that featured QR codes along with other in-store technology to help \u201ccreate opportunities for digital exploration,\u201d the company said at the time. Instacart last month began rolling out QR codes as part of an expanded connected technology suite of products with partner retailers. Additionally, Amazon included the technology in its first fashion retail location this May, where the codes provide more information on sizes and reviews.\n\nEThese cases show that QR codes can deliver personalization for shoppers who might want recommendations based on what they\u2019re inquiring about, but also create a level of convenience for associates who can spend more of their time on operational tasks.\n\n \n

3. Store operations<\/h2>\nIn line with Ohri\u2019s belief that retailers are thinking more about efficiency and productivity, the technology behind store management and operations continues to grow.\n\nThat encompasses anything from technology that helps automate tasks \u2014 freeing up labor \u2014 to using more data-driven approaches to understanding stock levels.\n\nThe top equity deals in the retail store management sector for Q1 this year involved a $500 million deal for inventory optimization company Relex Solutions, according to another CB Insights from April. Retail unicorn Swiftly Systems \u2014 an e-commerce technology company now focusing on brick-and-mortar optimization \u2014 got its second $100 million investment in September. For Q2, a wholesale marketplace platform for retailers to connect with brands took the top spot in the quarter with $416 million.\n\nLabor management is top of mind for everyone right now with the potential to use technology for cost savings, according to Ohri.\n\n\u201cThey\u2019re looking at labor management, communication, compliance store tasks, store audits, and using digital tools to simplify, as well as standardize those activities,\u201d Ohri said. \u201cSo things that used to take 11 to 13 hours to do are now taking eight hours to do.”\n\nA unique approach to store management technology is Lowe\u2019s digital twin store. In September, the home improvement retailer announced it was experimenting with a digital replica of a store where associates can interact with and visualize store data. The concept was first introduced to two locations and allows associates to use augmented reality headsets for a variety of tasks, such as viewing items available on higher shelves instead of needing to climb a ladder.\n\n \n

4. Fitting room enhancements<\/h2>\nPlenty of brands have experimented this year with enhancing the fitting room experience.\n\nH&M started using a smart mirror in some COS stores in May, where customers can get personalized styling recommendations from the mirror as it senses what products \u2014 including their size and color \u2014 shoppers brought in. Customers can request new items to be sent to their dressing room without needing to leave the space. The retailer also started testing mirrors on the showroom floor that can assist with virtual try-ons, as well as returns.\n\nSimilarly, Savage x Fenty opened its first store in Las Vegas this January, which has fitting rooms with digital kiosks that shoppers can use to scan products to check prices and see similar items.\n\nThis approach might be considered a way to free up associate time. However, it might not be that simple despite its increased adoption.\n\n\u201cI don\u2019t see virtual fitting rooms work as well as we can always want them to work,\u201d Ohri said. \u201cI find that anyone who\u2019s ever deployed them \u2026 they will tell you that the number of associate activities actually didn\u2019t go down. Because first, consumers need to learn how to use that tablet, because it\u2019s usually not as intuitive. Second, they need help with the products that they have anyway. And third, they\u2019re kind of really concerned about the data and the privacy. So it actually has increased associated tasks at store rather than reduce them.\u201d[\/vc_column_text][\/vc_column][\/vc_row]\n<\/div>","protected":false},"excerpt":{"rendered":"

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