What: The report explores how digital shoppers’ relationship toward technology has shifted in light of the COVID-19 pandemic.

Why it is important: The report offers retailers and brands insight as to where they should make technological investments today and in the future.

The report is organized into five aspects of the retail shopping experience with the order mimicking the typical transaction flow: online discovery; online purchase; in-store shopping; payments; and delivery and collection:

Online discovery: Before the pandemic, e-commerce served a transactional role and stores remained the primary avenue for experiencing a brand or interacting with a product. Digital channels have proved that they have the potential to play a bigger role in the future shopping experience. Implementation of technology like AR and VR and content mediums like livestreaming have proven to enhance online experiences. Virtual experiences will become more commonplace in the post-pandemic era as businesses shift priorities to further develop virtual capabilities.

Online purchase: E-commerce is projected to account for 51% of the retail industry’s growth globally from 2020 to 2025. Customers that use digital channels to make purchases tend to purchase across a wider range of product and service categories. The digital shift will to a rise in dark stores, micro-fulfilment centers and automated delivery for those that offer online grocery services.

In-store shopping: Physical stores remain a critical part of the shopping journey, but their utilization and purpose need to be rethought. Euromonitor estimates that 76% of goods will still be bought in store in 2025. Implementing technology such as contactless checkout capabilities will enhance the overall physical in-store experience.

Payments: The crisis pushed the importance of contactless payment options such as card and mobile-based payments. Digital payments also grew due to the increase of e-commerce transactions. Digital wallets use online and in store settings play a big role in driving digital payments forward, and also help retailers overcome shopping cart abandonment.

Delivery & Collection: The reinvention of last-mile delivery and collection is expected to remain an important topic in the year ahead. Delivery and collection services have been expanding with options ranging from buy-online-pick-up-in-store (BOPIS), curbside pickup, drive-through, robotics, and drone deliveries.

The report concluded that the pandemic accelerated technology related investments and technology-related product launches. Digital transformations were accelerated by at least a year. It will be essential for retailers and brands to enhance their entire commerce lifecycle with technology from operational efficiencies to elevating the consumer experience.

Consumer Retail Tech June 2021