Aruba predicts IT teams will demand more as retail doubles down on technology in 2023

New predictions from Aruba, a Hewlett Packard Enterprise company, have detailed how retailers will leverage technology to get ahead of evolving customer demands and operational challenges over the next 12-18 months.

Customers are going to be increasingly selective with how and where they spend their money in 2023, due to an uncertain macro environment and growing consumer desire for ever more personalized brand treatment. As retailers compete for wallet share, they will have to deliver flexible, tailored shopping experiences to attract new footfall and keep both online and in-store customers loyal, burdening on IT teams to support the pace of technological change and deliver the seamless running of operations.

In collaboration with global trends agency Foresight Factory, Aruba uncovered five ways in which the retail experience is set to change in 2023, and to identify the implications this will have for the IT teams and networks tasked with delivering them. The findings provide a compelling argument for a more flexible and agile network consumption model, like Network-as-as-Service (NaaS), to help take some of the strain off the network and IT team, allow for greater scalability, and help deliver a more business-outcome focused networking solution.

1. Retailers bring immersive digital experiences to in-store shoppers

As retailers fight to re-engage customers with physical spaces, they will look to invest more in technologies to deepen and differentiate the immersive experience of in-store shopping trips. Expect AR and VR that allows shoppers to get a better feel for how products will fit into their lives before they reach the point of sale to become fully embedded in a retailer’s user experience (UX).

2. Delivery options become more disparate and diversified

Retailers and grocers will take an increasingly hybrid approach to fulfilling orders, offering up traditional delivery solutions alongside dark stores, micro-fulfilment centers, grab and go “pop-ups,” and on-demand couriers. The use of enhanced geolocation services and even mobile stores will give retailers the chance to bring the point of sale directly to the consumer’s home or place of work.

3. In-store smartens up to drive delight and efficiency

With e-commerce offering ever more sophisticated competition, in-store spaces will be redefined to not only focus on enhanced customer satisfaction and personalization, but also more efficient business operations. Physical stores will become more connected, with innovations like smart fitting rooms and cashier less exits serving to delight customers, while IoT sensor capabilities provide real-time insights to support operational savings and sustainability ambitions.

4. Intelligent inventory insights will maintain consumer loyalty

Expect a surge in automation and predictive technologies to help more accurately track inventory and meet consumer demands in real-time. Smart robots deployed in warehouses and distribution centers will also make operations more intelligent, shifting made-to-order retailing into the mainstream, and reducing waste and excess inventory as a result.

5. Showrooming turns to streaming

Live Streaming from physical stores will become more commonplace as brands look to create the next stage of showrooming, giving customers a glimpse behind the scenes. Delivering such experiences will help feed consumer appetite for a local touch and allow retailers to make the most of their remaining physical spaces.

Gerri Hinkel, Director, Solutions and Vertical Marketing, Aruba, said, “In the face of continued change, retail companies need predictability and confidence in knowing their network can flex to meet evolving consumer demands and that their IT teams won’t fall under the burden of continued digitization. To achieve this, retailers need to reconsider their network approach – looking at alternative consumption models like NaaS to ensure that they not only have the ability to adapt as demands change, but are set up with a high-performing, secure, reliable, and automated network that can support all this technology and leverage real-time insights to facilitate new customer-facing and smart store initiatives.”