What is the future of Retail?

Retail is not a new word. We have been hearing this word since we were children. As we all live in residential areas, the best example of a retail business/ shop can be the grocery store where we purchase day-to-day items such as milk, sugar, candies, etc. However, if this example doesn’t sound familiar to you, let’s go to the deeper meaning of retail. Retail in simple language is the selling of goods or services directly to consumers, generally through the means of direct selling or online storefronts. We can see these shops/ businesses every day and are their direct customers too. The products are purchased by the retailer from wholesalers or direct manufacturers of the goods and then are sold to customers at a predetermined price, also known as MRP, allowing them to generate a profit. There might be a chain of wholesalers as well because of which some products may not give a good profit margin to retailers. Retail businesses can range in size from small independent shops to large chains with thousands of locations.

Some of the famous examples of retail stores that are known worldwide are:

1. Walmart – This company doesn’t need any introduction. It is a well-known retail corporation that successfully operates a large chain of hypermarkets, grocery stores as well as discount departments in many countries of the world. 
2. Amazon – From electronics to clothing, and from books to home goods, this multinational technology company has an online marketplace and retail chain stores that have a never-ending list of all types of items one might possibly need.
3. Starbucks – This chain of coffeehouses, popular globally operates more than 30,000 locations worldwide. Starbucks’ concept of writing the name of a customer on its coffee cups is very famous.
4. McDonald’s – This fast-food restaurant chain has become a household name and each one of us has had its servings. It operates more than 38,000 locations in over 100 countries.
5. H&M – Whether men, women, or children, this fashion retailer offers a range of clothing and accessories globally and is widely popular among the youth. 

Retailing includes a wide range of industries and the product range is endless. From fashion and groceries to electronics and home goods, each and everything can be sold in retail. The industry is constantly evolving as technology advances and consumer preferences change. Retailers must know what’s hot selling and have full knowledge about the present trends and innovations. This helps him/her to remain competitive and create a large customer base. Successful retailers often focus on creating a positive shopping experience for customers and building strong relationships with suppliers.

• The Future of Retail with ERP

With technological advancement, the whole pattern of traditional retailing has changed. And we will see more change as time passes. The future of retailing is expected to be highly influenced by technological advancements, changing consumer behaviours and preferences, and the need to provide more personalized and convenient shopping experiences. Because now the customer needs the best product/service which is designed according to their needs and is affordable. 

ERP systems are software platforms that integrate multiple business functions and processes, such as inventory management, human resources, sales and marketing, and finance, into a single system. By using an ERP system, retailers can streamline their operations, reduce costs, and improve decision-making by providing real-time access to data across the organization

Some interpretations of how the future will look like for retailing are as follows:

1. Personalization: In the present world, the customer wants to be treated not as an ATM machine, but like a family member, whose likes and dislikes are taken care of. So, retailers are focusing on providing more personalized shopping experiences to consumers. This involves using data to understand consumer preferences and behavior and tailoring products and services to meet those preferences. Retailers can provide personalized recommendations, offers, and experiences to consumers. This not only boosts sales but also results in increased customer loyalty.
2. Supply Chain Management: ERP systems can help retailers manage their supply chain more efficiently by providing real-time visibility into inventory levels, order processing, and logistics. By using an ERP system, retailers can optimize their supply chain operations, reduce costs, and improve the accuracy of inventory forecasting and demand planning.
3. Augmented Reality: Augmented Reality (AR) is a technology that allows consumers to visualize products in a realistic way before purchasing them. It makes you feel like you are using the actual product. This helps the customer to know about the product better even without actually using it. Consumers can see how a product would look in their homes or on their bodies before making a purchase, leading to more informed buying decisions. A great example can be Lenskart, which with the help of AR, provides consumers with a real-time experience of the frames.
4. Omni-Channel Retailing: ERP systems can help retailers integrate their physical and digital channels by providing a single platform for managing all customer interactions, transactions, and data. The sole purpose is to create a consistent and personalized experience for customers, regardless of where they are shopping, by leveraging data and technology. Retailers are also integrating their online and physical stores to provide a seamless shopping experience. By using an ERP system, retailers can provide a seamless shopping experience across all channels, including online, mobile, and in-store.
5. Customer Relationship Management: ERP systems can help retailers manage customer data and interactions more effectively by providing a 360-degree view of customer behavior, preferences, and buying patterns. By using an ERP system, retailers can personalize their customer interactions, provide targeted marketing campaigns, and improve customer satisfaction and loyalty.

In conclusion, the future is heavily dependent on the use of technology and so is retailing, and Enterprise Resource Planning (ERP) systems are expected to play a critical role in shaping the future of retailing. By using an ERP system, retailers can get a head start on their competitors by streamlining their operations, reducing costs, and improving decision-making by providing real-time access to data across the organization. Not only ERP systems can help retailers manage their supply chain, customer relationships, and omnichannel retailing more efficiently, but also provide analytics and business intelligence for data-driven decision-making. Retailers that adopt ERP systems will be better equipped to succeed in the future of retailing, ultimately leading to increased profitability and growth.