As the number of store closures this year hit 3,000 (so far), retailers and brands are continuing to make investments in technology while working to realign their businesses in a crowded and highly competitive market.
With technology, having the latest bells and whistles doesn’t guarantee success. Industry solution providers say retail success in today’s environment requires strategic thinking coupled with using the right types of technologies as well as data that can help them make better-informed decisions.
Jeff Warren, vice president of retail strategy and solutions at Oracle Retail, noted that data can play a key role in driving sales as well as profits. “Understanding the ‘network effect’ is essential to understanding influence — just because a retail store is in a large metropolitan city, doesn’t necessarily mean it’s the most influential in boosting sales and conversions,” Warren explained. “By analyzing customers’ transaction data (when products were purchased and how many) and applied machine learning, retailers can better understand the network effect between stores, identify those trend-setting stores and target promotions appropriately — ultimately driving higher profit.”