The consumer shopping experience has been thoroughly disrupted by eCommerce, and traditional brick-and-mortar retail companies must digitally transform their shopping experience to survive.
In God we trust. Everyone else must bring data."
Digital and eCommerce Director, Kroger
With direct-to-consumer sales trending upwards, eCommerce poses an ever-increasing threat for brick-and-mortar stores. Many retailers in recent years have constructed their own digital retail experience but often still come up short due to traditional business and operational models and lack of digital capability, allowing newer, pure-play eCommerce entities to siphon market share.
Retailers are also seeing added margin pressure, with increasingly fickle and price-sensitive consumers for all but a few lucky leading brands.
In this high-pressure environment, retailers also have an additional burden to manage their supply chain for cost efficiency and quality. This includes the burden to source talent and products ethically.
As with many other industries, traditional retail environments are often built upon monolithic applications that are difficult to change or improve. Making a digital shift will enable retailers to take advantage of robust data, clean up back office systems, and foster the opportunity for continuous delivery.
However, this does not mean that brick-and-mortar stores will be abandoned--digital transformation readies retailers to open up omnichannel and multichannel digital experiences, which allow a customer to seamlessly shop in different mediums with ease. All of these solutions come together to both improve customer experience and more efficient operations for retailers.