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The Future of Retail: How Technology is Improving E-Commerce and In Store Experiences in 2021

The Pandemic Changed Consumers Preferences and Retailers Approach to Commerce, What’s Next for Retail?

Karl Haller

Global Lead IBM Consumer Center of Competency

The COVID-19 pandemic impacted almost every aspect of our daily lives, and one area that has been heavily discussed is the impact on retail. From disrupted supply chains causing empty store shelves, to an influx of consumer purchases online the changes in how consumers shop and what goods they are shopping for, has dramatically shifted. While retailers are increasingly pivoting to new digital experiences to attract new customers, build loyalty with existing ones and support a safe shopping experience amid the global pandemic, outdated IT infrastructure is stifling the industry’s efforts to modernize and enable fully integrated digital and physical capabilities for a more seamlessly end-to-end consumer experience.

Consumer trends that are impacting retailers include a focus on sustainability, changing preferences to e-commerce, and higher expectations for their shopping experience. IBM is working closely with their partners to ensure that retailers can leverage technology like AI, Cloud and Blockchain to procure the best experience for consumers.

Some examples of budding retail trends and how technology is playing a role include:

• Purchasing Moves Online and onto the Cloud: Pre-pandemic consumers had gradually been choosing to shop digitally instead of visiting physical stores, however data from IBM’s annual US Retail Index illustrates that Covid-19 has accelerated this shift by roughly five years. While retailers are increasingly pivoting to new digital experiences outdated IT infrastructure is stifling the industry’s efforts to modernize and enable fully integrated digital and physical capabilities for a more seamlessly end-to-end consumer experience. As a result, retailers are turning to hybrid cloud capabilities – like those offered by IBM – to help them adopt a more holistic approach, bridge disparate IT siloes, and deliver new value to both shoppers and brands.
• Sustainability is a Priority: According to a recent IBM survey, 57% of consumers surveyed were willing to change their shopping habits to reduce environmental impact, and 53% of consumers surveyed would pay a premium for traceability of the products they buy. Covalent, a recently launched fashion brand, is using IBM Blockchain technology to record and manage the lifecycle of its regenerative and traceable carbon-negative AirCarbon accessories, such as sunglasses, handbags and wallets. By using IBM technology, the ability to provide a secured overview of the environmental conditions involved in the production of Covalent’s luxury goods will be possible. This partnership will foster trust and give Covalent’s customers a better understanding of how their products were made.
• Supply Chains in Focus: Many businesses are also reevaluating their supply chains, and beginning to implement new technology to ensure faster, more efficient supply chains. For example, Fung Group, a company that works with brands like Frye and Ellen Tracy, will move its entire group to the cloud and modernize its IT to create a flexible and user-friendly IT infrastructure that will allow the Leading Global Supply Chain Group to grow product categories and expand into new markets.

Given the shift in consumer interest to a digital-first shopping format, retailers have been rapidly reinventing their business operating models, with many tapping hybrid capabilities, to keep up with these industry changes. We’re making IBM’s Karl Haller available to talk about the future of retail, including how technology is playing a role in ensuring quicker, more secure transactions for customers, and supporting retailers with their supply chains. 

For more information please visit: www.ibm.com/retail

More About Karl Haller:

Karl leads IBM’s Consumer Industry Center of Competency, where he works with retailers and consumer goods companies worldwide to digitally reinvent their businesses and operationalize the use of advanced capabilities across their enterprise. Karl has over 25 years of experience in retail, fashion, and consumer goods, and has served in executive positions in Strategy, Customer Engagement, and Marketing at Brooks Brothers, Tommy Hilfiger, The Limited, and Doner Advertising.  Karl began his career in the strategy consulting practice at PricewaterhouseCoopers.