Brick-and-mortar retail is undergoing a giant transformation. As the retail sector embraces technological innovation on the shop floor, the high street shopping experience will never look the same again.
As we head towards the new year, 2025 will see more brick-and-mortar retailers leveraging AI for inventory predictions and introducing traffic-busting point-of-sale systems to the checkout.
With this in mind, let’s jump into seven retail-powered tech innovations that aim to transform brick-and-mortar shopping like never before.
Automating the inventory using machine learning
The benefits of artificial intelligence continue to multiply within the retail sector. AI has disrupted nearly every sector on the planet, and brick-and-mortar retail is no exception.
With the ability to automate behind-the-scenes operations and analyse consumer spending trends, AI has become a significant player in the inventory process.
(Image Source: InventoryBigData)
Machine learning, in particular, is tipped to revolutionise the inventory process in the future. Using demand forecasting ML, retailers can monitor product demand and track how quickly items move off the shop floor.
This allows store owners to audit stock more effectively and plan inventory additions and reductions accordingly, based on how popular a product is on the shop floor. 2025 is set to be the year of automated inventory control, aiding store owners in reducing excess stock and staying on top of their stocking efforts.
ChatGPT on the shop floor
On the topic of artificial intelligence, let’s talk about generative AI, specifically ChatGPT.
While we commonly associate chatbots and generative AI with online business-to-consumer interactions, there are plenty of ways brick-and-mortar retailers are leveraging generative AI on the shop floor as we approach 2025.
For example, did you know that ChatGPT can be used to improve your in-store layout?
Using data from your inventory demand forecasting, customer spending analytics, and market trends, ChatGPT can automatically create a planogram for your store that positions your best-selling products in the perfect location for continued conversions.
IoT innovation for an interactive shopping experience
There are over 18.8 connected Internet of Things (IoT) devices across the globe in 2024.
We continue to embrace IoT services as a well-ingrained aspect of everyday life, so it’s no surprise that brick-and-mortar retailers are leveraging its success for in-store transformation.
According to SoftwareAG, “An Internet of Things (IoT) device is an internet-connected object that collects and exchanges data with other devices and systems.”
For example, when utilised in a retail environment, customers with an IoT-enabled device such as a smartphone can connect instantly to in-store services that allow them to scan a product on the shelf and immediately pull up information on the item.
This could be product reviews, more information about the brand, or any data that may influence a purchase. By enabling IoT capabilities in-store, you reduce the risk of return. If a customer is well-informed about a product, they are more likely to be sure of their purchase and less likely to return the product at a later date.
BOPIS infrastructure for Omnichannel shopping
Did you know that more than 54% of customers prefer to look at a product online before buying it later in-store?
The buy online pick up in store (BOPIS) movement is already taking off within the brick-and-mortar sector and is tipped to explode in 2025.
BOPIS infrastructure will be a crucial addition to a strong in-store strategy in the coming year. Not only does it promote convenience for omnichannel customers, but it takes brick-and-mortar retail one step closer to a phygital future.
Axel Heimken / DPA Picture Alliance / Avalon
Plenty of high-street stores are already on board with BOPIS, including M&S, H&M and Zara, who offer a number of click-and-collect options to digitally savvy shoppers.
Innovative point of sale systems for a faster checkout
Point of sale technology is also undergoing innovation as we step towards 2025. Digital POS systems now have the ability to speed up product purchases, personalise customer experiences and even leverage real-time inventory data.
It’s no secret that brick-and-mortar retailers are updating and upgrading their POS systems for smoother purchases.
Innovative POS technology bridges the gap between in-store and online shopping by harnessing the ability to capture and store data from every in-store purchase. This data is then used to create profiles for returning customers that can be used to personalise future experiences with the brand.
AR-powered shopping
The future of brick-and-mortar success lies within the value of the shopping experience. Customers demand highly engaging, customised shopping experiences in 2024. As we move into a new year for the retail sector, stores that aim to upgrade their in-store shopping experience will come out on top.
In fact, 61% of consumers prefer to shop with retailers who offer AR/VR-powered experiences.
Augmented reality is the process of enhancing one’s surroundings digitally. For customers with a smartphone device, tech-savvy retailers are now allowing customers to interact with the brand in new ways.
For example, customers could use their smartphone to scan a piece of clothing and automatically see the piece on their digital avatar. Better still, some stores, such as Sephora, have integrated AR onto the shopfloor using an augmented makeup mirror.
Powered by AR technology, customers can try foundation shades and lip colours virtually before purchasing the product.
Mobile apps for the smartphone shopping boom
In 2025, more than half of all retail shoppers are expected to make purchases on their phones while in a brick-and-mortar store.
As smartphone technology continues to blur the lines between online and in-store shopping, more retailers are creating branded apps and platforms that can be used to accompany in-store shoppers.
Using a branded app in-store, customers can redeem loyalty points and in-store discounts, compare product prices, and view ratings and reviews.
Creating a mobile app gives brick-and-mortar retailers a chance to engage with customers on a personal level. By integrating your app with your in-store POS system, you can create discount codes and offers that are customised to each and every customer’s historic purchases.
Looking to the future
As we look to the future of retail innovation, technology is at the forefront of the high street’s success.
2025 is tipped to bring more key technologies to brick-and-mortar retailers, especially as we welcome a new era of omnichannel shopping.
From AR-powered in-store experiences to integrated POS systems and interactive product displays, the shop floor will never look the same again.
