Rethinking retail

Retailers are in a never-ending race to stay ahead of the competition. They need to deliver integrated, cohesive experiences across all channels. Younger generations, especially Gen Z, feel more comfortable shopping online. To reach them, retailers need to form partnerships and leverage new technologies, including creative ways to engage with consumers in virtual worlds. This will unlock new business opportunities and models for both retail brands and stores.

In May 2021, for example, Gucci opened a two-week-only Gucci Garden experience in the virtual world of Roblox where online shoppers could try on and purchase digital items for their avatars. Gucci reported almost 20 million visits and hundreds of thousands of virtual gear purchases, according to CB Insights’ 2022 12 Tech Trends to Watch Closely report.

This year, Gucci returned to Roblox to build a permanent town and shop. In the post-pandemic world, brands will have to figure out how best to reach consumers and what platforms—virtual or real—match best with their brand strategies.

Good retail employees are hard to find, expensive to hire, and even harder to retain. In recent years, employees have become increasingly picky about where they work. According to mid-2022 research from McKinsey, at least half of retail frontline workers are considering quitting. To keep staff, companies must deliver employee experiences that include job flexibility, wellness programs, and a growth trajectory.

One way to do that is by providing a unified experience across all touch points, including IT, HR, facilities, legal, and training. Retailers must get the employee experience right and make it easy for employees to solve problems on their own. Doing so makes employees happy and translates directly to a better experience for the customer.

To run stores efficiently and support customers and employees effectively, retailers are embracing digital transformation. With that comes a focus on cloud computing, which brings with it heightened concerns about operational expenses, optimization, and ROI.

As cloud-related expenses grow, retailers must figure out how to run cloud operations faster and cheaper, with better governance, security, and control. To do so, companies will need a clear cloud strategy that provides a centralized view into their entire system, including tracking, monitoring, and managing usage, to bring full visibility and transparency to all IT operations. This will be a critical focus for companies as they move beyond the pandemic and into an uncertain macroeconomic phase.

Retailers live in a dog-eat-dog world, where competitors are consistently nipping at their heels and fickle consumers run after the latest trends and fashions. Only the most agile, human-centered organizations will survive.