Shopping in physical stores offers consumers something unique and valuable compared to the digital domain: a social experience and a tactile experience. But, our latest research shows that shoppers are now seeing less value and pleasure in this core element of the physical retail experience. Our global survey – spanning 6,000 consumers and 500 retailers – found that one-third of consumers would rather clean dishes than visit a retail store.
A key reason for this declining value is that consumers now expect a physical user experience that replicates what they find online, from expecting goods to be in stock to being able to choose from multiple delivery options. Consumers wish to use technology to help them engage with the store at every step of the shopping journey.
Unfortunately, these new expectations are not being met, and as a result consumer satisfaction for retailers is worryingly low.
The winners of the future will be those that are transforming the customer experience through new technologies, digitizing operations, and putting in place the right people capabilities. In this report, we provide a framework for retailers to diagnose where they are in terms of becoming a Digital Leader and the strategic priorities for ensuring they do not just match fast-changing consumer expectations, but have the agility and vision to stay ahead of what consumers want from the physical store.
Transcript: New from BookNet Canada for 2024: BNC CataList - Tech Forum 2024
Why Physical Stores Need a Reebot Infographic
1. Making the Digital
Connection:
Why Physical Retail
Stores Need a Reboot
What’s Wrong with Retail Stores?
Self-driven/ Automatic
shopping carts which take you
to items on your shopping list
Ability to go to the store for
maintenance/ repairs after
purchase
Smart mirrors to virtually see the clothing products
without actually trying them on
Ability to design rooms (for example
kitchens) through online or augmented reality
tools which shows what your kitchen will look
like with the new upgrades based on your
actual house settings
Self-Driven Carts and Augmented Reality –
Consumer Wants are also Going Tech Savvy
57%
Grocery
Electronics
73%
63%
Fashion
68%
Home
improvement
Consumers are Clear on the Technologies they Like
How Should Retailers Respond?
But Retailers are Missing the Bus -
Mesh the
convenience
of website/app
into a physical
store
Make the
store visit a
social and
inspiring
experience
Empower
store
associates
with digital
tools
Transform
store through
digital
operations
Most Retailers have been Slow to Digitization
Benefits Realized By Retailers
ImplementationofDigitalInitiativesIn-Store
Strugglers Digital Sprinters
Laggards Early Gainers
5% 18%
37% 40%
Away
from Store
Consumer checks
availability of
product in store
75%
Inventory Scan
Instant communication with
product experts virtually
63%
Smart devices automatically
orders registered items from
home if running low
56%
Personalized offers through
SMS or app messages
when consumers are close
to a store
54%
Mobile platform for
associates with all product
and stock information
67%
Mobile platform for consumer
with interactive store maps and
beacon messages
62%
Smart end-of-aisle display
to show preferred products
and search product
information
53%
Ability to design rooms
through online or augmented
reality tools
68%
Provide intelligent product
recommendation, connect with
sales associates and place order
62%
Smart Assistance
Smart
Assistance
Proximity based promotion
Smart Trial Rooms
Using augmented
reality project products
in customized settings
like kitchen
65%
Smart conveyor belts to
automatically scan all items for
checkout
66%
Queue less Checkout
Mobile-based payments,
contactless cards, digital wallets
or wearable payment devices
61%
Near To
the Store
Consumer
Acceptance
Consumer
Acceptance
Consumer
Acceptance
Inside the
Store
Inside the
Store
Using location technologies to send
personalized messages to consumers who
have ordered from a store in vicinity
54%
Same day delivery of
product purchased in-store
73%
Intelligent Delivery
Interactive Displays
Consumer Expectation from Stores is On the Rise
75%of consumers
want to check
availability of product
in stores before
visiting
73%of consumers
want same-day
delivery options from
the store
57%of consumers
want retail stores to
evolve to social
spaces or provide
learning or inspiration
Consumers Expect
a Similar User
Experience from
Physical Stores as
They Find Online
Reach out: Interested in reading the full report?
Head to: https://www.capgemini-consulting.com/resources/making-the-digital-connection
Slideshare: https://www.slideshare.net/capgemini/making-the-digital-connection-why-physical
-retail-stores-need-a-reboot/
Follow us on Twitter: @capgemini or email dti.in@capgemini.com
Seamless Payments
HighLow
Digital initiatives are
not implemented/
Implemented in few
stores
Digital initiatives
are implemented in
majority stores
48% 59%
would rather clean
dishes than go to a store32%of consumers consider
shopping in stores as a chore40%
of brands in our
survey were given
Negative NPS by
consumers
(Average Negative
NPS of -23)
of consumers are
willing to buy from
large Internet
players, such as
Google Express/ Apple/
Facebook in future
Digital Technologies that
Consumers Find Most Useful