Artificial Intelligence

Amazon fired the first shots of a long-needed retail industry revolution recently with its announcement of Amazon Go. While most major retailers have been working on solutions to many of the point-of-sale issues that a checkout-less store solves; Amazon is simply going to eliminate these issue entirely — at least in its own stores.   

Retailers will engage new channels, “geek up” their stores, and use technology to refine inventory management and anticipate customer desires in 2017.   That’s according to Software AG, which released a list of six disruptive digital trends retailers must address in 2017. Here’s a recap:   

Women have long struggled with how to recreate a look from a department store’s makeup artist. Neiman Marcus is now streamlining the task through its newest interactive mirror.  

When it comes to retail operating costs, energy is one of the top three expenses. Lighting is of course a component of this, accounting for 50% of energy costs for non-food retailers. Each square foot of a typical retail store costs roughly $0.71/SF/year – a cost that quickly adds up at the store and chain level.^{1, 2, 3}  

Starbucks Corp. is taking its already robust mobile ecosystem to the next level.     As part of an ambitious five-year strategy that includes aggressive store expansion, the coffee giant is extending the accessibility of its mobile app with a conversational ordering system, powered by artificial intelligence.      

Brand-building consultant Denise Lee Yohn has released her annual “Brands to Watch” list for 2017. There are 26 companies on the list, with retail and social media brands accounting for 10 of the spots.  Here’s a review:   Barnes & Noble. The venerable bookstore chain has let its CEO go, lowered sales expectations, and shrunk its footprint by dozens of stores. Meanwhile Amazon Books is opening stores. Is 2017 the year B&N’s death will become imminent?!  

The Kroger Co. has tapped a tech veteran as its next chief digital officer.   The supermarket giant announced that 15-year-veteran Kevin Dougherty, 63, group VP and chief digital officer, will retire on Jan. 27, 2017. He will be succeeded by Yael Cosset, 43, chief commercial officer and chief information officer of 84.51.     

Coop Italia, Italy’s largest supermarket chain, is looking to reinvent the customer experience in grocery shopping.    In collaboration with Accenture, the retailer has opened a flagship in Milan that merges the physical and digital to recreate the atmosphere of local open-air markets. Billed as the “supermarket of the future,” the store uses innovative digital solutions that provide product information, improve store navigation and engage customers.