Facing the Challenge: Retail in Flux
Picture today’s retail store—a bustling hub of activity where foot traffic is up, almost rebounding to pre-pandemic levels. Customers stroll the aisles, browse the merchandise, and expect a fast and efficient checkout. Underneath this picture lies a minefield that haunts retail Operations and IT leaders: retail’s ongoing labor crisis.
Not always evident to the untrained eye, the retail industry continues to grapple with economic volatility and labour uncertainty. With turnover rates more than 70 percent higher than in other industries, retailers are challenged to fill frontline positions and ensure associates are trained to support the demands of increasingly complex operations of today’s retail businesses. The problem is so acute that as many as 68% of retailers in some sectors rate labour availability as “difficult” or “very difficult”.
To bridge the widening divide between shopper expectations and resources at retailers’ disposal, retailers are turning to technology. Mobile devices, artificial intelligence (AI), and self-service solutions are emerging as key strategies used by leading retailers to address staffing gaps and improve productivity of retail associates.
Leveraging Mobile Devices for Enhanced Efficiency
One of the primary ways retailers are boosting productivity is by using mobile devices to digitize and eliminate paper-based processes. With deployments growing at over 180% year on year, mobile devices help automate stock-taking, planogram compliance and workforce management tasks, enabling employees to work more efficiently. With a device in the hands of every associate, training content can now also be efficiently delivered to frontline staff. Through adoption of enterprise devices that support real-time voice communication, retail teams are becoming increasingly connected, enabling them to collaborate effectively.
Compugen's human-centered approach to designing, deploying, and managing complex mobile productivity solutions ensures that retailers deploying advanced mobile tools maximize the connection between people and processes, yielding maximum productivity gains.
Harnessing AI for Operational Optimization
AI-powered solutions are also playing a crucial role in transforming store operations. By automating processes such as out of stock analysis, price ticket updates, security monitoring and order management, retailers can enhance efficiency and reduce labour costs. Modern, AI-enabled video security solutions automatically flag suspicious activity, allowing loss prevention teams to operate with less staff. Computer vision technology deployed at the shelf-edge optimizes stock replenishment by recognizing out-of-stock products and triggering re-stocking alerts. Paired with Electronic Shelf Labels (ESLs), another technology that automates routine tasks of updating store signage, AI enables dynamic pricing schemes that maximize retailers’ profitability.
Compugen's relentless commitment to curiosity unlocks AI's boundless potential for retail, helping retailers transition from time-consuming manual tasks to automated, predictive workflows.
Empowering Self-Service Experiences
To alleviate the strain on frontline staff, retailers are continuing to invest in self-service, with as many 50% of North American grocers indicating they have self-checkout in pilot or on their roadmap, according to research and insights firm, Incisiv.
Modern self-checkouts, like HP Engage Express, are increasingly enabled with features to address loss prevention and optimize the transaction process. To improve security, cameras are positioned above the self-checkout monitor for signs of fraud. AI algorithms running on powerful HP hardware speed up transactions by using computer vision to recognize produce, without the need for tedious item lookups or PLU codes. As a result, with HP Engage Express, retailers can ensure smoother operations, reduced wait times, and increased customer satisfaction.
Compugen's drive to make a difference shines through in the seamless integration of HP Engage Express self-service family, offering retailers a comprehensive solution to navigate labour shortages and provide choice in the check-out process.
Conclusion: Embracing Technology for Resilience
Here’s a universal truth: technology is not just a conduit; it's the lifeline that sustains retail operations in times of uncertainty. When faced with a challenging outlook, retailers that adopt a human-centered, technology-enabled approach to optimizing operations will not only survive, but thrive, in the face of adversity. By effectively leveraging technology such as mobile devices, AI-driven solutions, and self-service technologies, retailers can navigate staffing challenges and deliver on consumer expectations.
To learn about how Compugen can help dream, design, and deliver retail solutions that work specifically for you, book a Discovery Call today.
For more information on retail trends, read Unveiling the Future: Insights from the National Retail Federation Show in NYC, where Jeff Charny, Compugen’s seasoned Account Executive, shares his observations and guidance to retailers navigating the evolving retail landscape.
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