ROLE OF TECHNOLOGY IN RETAIL INDUSTRY

Recent advances in technology have reshaped and continue to reshape many industries.
Retailing is no exception. In recent times, technological advances have accelerated dramatic
shifts and caused significant disruptions in the retail landscape. For example, with
technology-driven innovations ranging from one-click ordering to personalized
recommendation to smart speakers to anticipatory shipping. The technology has redefined
shopping and displaced many brick-and-mortar retailers.
Many of these technologies are powered by artificial intelligence (AI), which is reshaping
retailing in a big way. “AI refers to programs, algorithms, systems or machines that
demonstrate intelligence. More generally, it is used to denote a set of tools that can enhance
the intelligence of a product, service, or solution”. Applications of AI in retailing include
personalization and recommendation systems, sales/customer relationship management,
customer service management, supply chain optimization, inventory management, and store
task creation. From the increased use of kiosks to the implementation of artificial
intelligence and stronger warehouse management systems, technology continues to progress
and assist retailers across industries with more efficient ways to conduct operations, as well
as help simplify certain processes, gain insight into consumers, keep track of inventory, and
so on.
IN PAKISTAN:
In Pakistan the role of technologies in retailing has taken a dramatic leap following the
outbreak of the COVID-19 pandemic. As a result of the shelter-in-place and lockdowns
aimed at containing the spread of coronavirus, many brick and mortar retailers have been
forced to close down physical stores and move more rapidly toward technology-based
solutions such as online ordering and fulfillment, click and collect, and robot-assisted
operations, which causes the birth of technology in retail industry.
The dramatic week-to-week or day-to-day changes in shopping trends during the pandemic’s
outbreak mean that those with instant access to data would be better informed and make
better investments than those using fewer current data.
As many shoppers and retailers move a large portion of their business online during the
COVID-19 outbreak either by choice or due to regulation, having a contemporary and
scalable cloud infrastructure in place is essential for retailers to serve their customers and
capture sales. It also aids business continuity as formerly office-based employees can
continue their duties from remote locations with minimal disruption
From cash management to inventory management, information technology has become an
integral part of the retail sector. It offers efficiency and enhanced productivity because the
retailer does not have to spend time on making the list and calculating it on the calculator.
Certainly, it is essential to adopt advanced technological tools in order to generate more
revenue and provide great services to consumers. Gone are the days when the retailers had to
set the money in different drawers and keep a record of all the sales. Now, with POS (point of
sale) and cash management systems, all a retailer has to do it scan the code and manage the
money. Things have changed with the advancement in information technology and they will
further transform each sector and it is important for the retailers to get this technology in
order to have a more impactful business strategy. Where a number of stores are moving
towards QR codes and online payments, there are a number of general stores that are still
following the old techniques of cash management due to lack of resources.

The concept of plastic money is more prevalent than ever and consumers prefer paying from
their debit and credit cards instead of carrying money. Therefore, the retailers are now using
electronic cash registers because they are inexpensive as compared to other technological
devices. However, this does not help in customer tracking, a sales record, automated
purchasing, etc. Advanced POS systems are playing a decisive role in the retail sector as they
allow the retailer to have a check on out-of-stock products and available inventory. In
addition to it, a retailer can track customer history and sales records. Fast checkouts and time-
saving systems can enhance the level of service delivery as well. Customer loyalty programs
have become possible due to information technology and an advanced POS system can help
you in narrowing down the consumer names for your loyalty programs.

Example:

Let us take example of departmental store industry in Pakistan and see how technology is
controlling demand, supply, shortage and customer satisfaction. Technology has been
playing a crucial role in controlling demand, supply shortage, and customer satisfaction in the
retail industry. Following are some ways how technology is helping in departmental store
retail industry.

1. Demand forecasting: With the help of predictive analytics, some departmental store
retailers forecast demand patterns, detect supply chain issues, and identify potential
shortages before they occur. This enables them to take proactive measures to ensure
customer satisfaction and maintain their reputation.
2. Supply Chain Management Systems: Some departmental store retailers use supply
chain management systems to track the movement of products from manufacturers to
stores. This technology helps retailers to identify any supply chain issues that may
cause shortages or delays in product delivery. By having real-time visibility into their
supply chain, retailers can take action to address any issues and ensure that products
are delivered on time to meet customer demand
3. Inventory management: Some departmental store retailers are using RFID (Radio
Frequency Identification) software to monitor and manage their inventory levels in
real-time. RFID technology not only streamlines inventory process but also provide
100% accuracy when it comes restocking. This helps them to avoid stockouts, reduce
overstocking, and maintain optimal inventory levels to meet demand.
Point of sale (POS) systems is also helping departmental store retailers to track sales
and customer purchases in real-time. This technology helps retailers to identify which
 products are popular with customers and adjust their inventory accordingly. POS
systems also allow retailers to offer promotions and discounts to customers based on
their purchasing patterns, which can increase customer satisfaction.

4. Customer relationship management system: Customer Relationship Management

(CRM) systems are used by departmental store retailers to track customer interactions
and purchases. This technology helps retailers to better understand their customers'
needs and preferences, which can inform their marketing and inventory strategies.
Retailers also use CRM systems to personalize their interactions with customers and
improve customer satisfaction.
Retailers use technology to collect customer feedback and reviews, which they can
use to improve their products and services. This helps to enhance customer
satisfaction and loyalty
Conclusion:
Overall, the technology is helping retailors to better understand their customers, manage
inventory and provide a seamless shopping experience. This ultimately leads to higher
customer satisfaction and better business outcomes.
Reference:
www.shopify.com/in/retail/retail-technology
mays.tamu.edu/center-for-retailing-studies/wp-content/uploads/sites/18/2021/02/How-
Technology-is-changing-retail.pdf
https://www.retailcouncil.org/community/technology/the-importance-of-information-
technology-in-retail