Increasing dependence on emerging Artificial Intelligence and mobile technologies creates challenges for retailers, as 34% of consumers experience tech gaps with in-store devices
The retail industry is facing a critical juncture where consumers are experiencing a disconnect between their shopping expectations and the in-store reality. As global retail markets continue to evolve, the industry grapples with the challenges of rolling out in-store technology and integrating advanced Artificial Intelligence (AI) technology while optimizing the supply chain and addressing growing security concerns.
According to SOTI’s new global retail report, Techspectations: Consumer Demand for Digital Transformation in Retail, retailers are grappling with the heightened expectations of consumers anticipating seamless in-store interactions, personalized recommendations and instant access to inventory online and in-store to ensure their continued loyalty.
Emerging Technologies and the Consumer Experience
While consumers crave technology to improve their in-store shopping experience, those offered by retailers do not always meet expectations. The study found that while 91% of global consumers have used in-store technology, many believe these devices make the shopping experience worse. Consumers cite challenges in-store such as a lack of staff to assist with issues relating to self-serve machines (51% of users) and as many as 35% of users complain about poor Wi-Fi connectivity when using an in-store device.
| Device | % of Consumers Who Believe In-Store Tech Worsens the Shopping Experience |
| Tablets (seeing reviews) | 17% |
| Tablets (completing order forms) | 20% |
| Tablets (ordering goods) | 18% |
| Kiosk | 15% |
| Self-Serve Checkout | 15% |
| POS Devices | 12% |
| Handheld Scanners | 10% |
The report suggests that consumer expectations have risen, largely due to the sophisticated personalization and seamless processes available online, which in-store technologies currently fail to match. To address this, retailers must invest in AI-driven solutions and device management to provide consistent, personalized and convenient shopping experiences in both physical stores and online.
Read More: GreyOrange Raises Item-Level Accuracy to 99% with gStore Overhead RFID Technology
Retail Supply Chains Must Meet Real-Time Demands
Supply chain optimization in the retail industry is critical, as consumers now demand real-time information, efficient product availability and rapid delivery in-store and online. The global report reveals that 45% of consumers expect to be able to pick up an item ordered online from a physical store on the same day, with even higher expectations in specific regions such as Mexico (60%). Further, 74% of global consumers expect to always know the status of their orders, highlighting the need for efficient supply chain visibility.
“It is crucial to recognize that AI plays a significant role in harnessing deeper intelligence from devices,” said Shash Anand, SVP of Product Strategy at SOTI. “AI-driven diagnostic intelligence and proactive support solutions empower retailers to identify and resolve issues before they impact the consumer experience. By integrating location, signal strength and speed data with critical business information, such as inventory levels and delivery status, AI can ensure that in-store hyper-personalization can replicate the seamlessness consumers expect from online shopping.”
Consumer Trust and Data Vulnerability
Security is a significant concern in the retail industry. More than three-quarters (76%) of consumers globally express concerns about entering personal details online or through in-store devices, indicating a pervasive lack of trust in the data collection and payment technologies used in retail. Security concerns extend to fraud, with 35% of global consumers worrying about becoming a victim of financial fraud and another 35% expressing concerns about identity fraud.
Additionally, the report emphasizes the importance of in-store device security, as 34% of consumers have concerns using in-store devices due to mistrust of retailers, including the potential exposure of personal details (28%) and the risk of the next user accessing personal information (26%). Despite this, 39% of consumers view in-store devices as tools to enhance shopping convenience and speed, highlighting the need for retailers to balance convenience and security while building trust among those making purchases in the retail space.
“Over the next three years, the focus should be on building trust, safeguarding data and providing seamless experiences that bridge the gap between online and in-store shopping,” said Anand. “The journey toward digital maturity in the retail sector has been slow. Intelligence solutions such as SOTI XSight Live View can not only help you visualize your retail operations and entire supply chain – in real-time, but can also allow you to uncover operational issues immediately by merging both business and device data. It’s crucial for retailers to understand how devices are used in its operations, and to be proactive on identifying and fixing issues. They must recognize the path forward is not solely about rapid technology deployment but that success is reliant on strategic implementation and optimization for scalability.”
Report Methodology
SOTI’s research was conducted between September 3 and September 14, 2023, via 11,000 self-completed interviews from nine markets around the world. All interviewees were consumers aged 18 to 65. The markets represented were: The U.S. (2,000), Canada (1,000), Mexico (1,000), UK (2,000), Germany (1,000), France (1,000), Sweden (1,000), the Netherlands (1,000) and Australia (1,000). In addition to presenting global, overarching trends, the results were broken down into these individual market tables and regional sets for Europe and North America.