ResourcesRetail modernization: Trends, technologies, and transformations
Sep. 05, 2024

Retail modernization: Trends, technologies, and transformations

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There has been a paradigm shift in retail spaces in recent years due to a surge in e-commerce activity. Many physical stores have successfully shifted their businesses online, while others have partially adopted e-commerce retail to offer enhanced shopping experiences to their customers.

Paradoxically, many online stores have also begun to set up physical retail stores, with some studies suggesting one in three businesses planning to expand or establish their physical footprint in the coming months. These trends underline the symbiotic relationship that e-commerce and in-store retail strategies share.

Hence, there is a need for businesses to adopt a more modern and contemporary retail strategy in-store. This is essential to improve customer experience and enhance business operations at the same time. This article evaluates certain key trends helping modernize retail for a customer-centric in-store experience.

What is retail modernization?

Retail modernization is the process of updating retail operations using digital technologies, automation, and data analytics. It includes upgrading point-of-sale systems, integrating e-commerce platforms, and enhancing customer engagement tools to improve efficiency, reduce costs, and meet evolving consumer expectations.

Modernizing existing retail strategies requires moving away from legacy tools and approaches and adopting IT infrastructure and business practices that lead to a seamless shopping experience. Retail modernization is not just about having the latest software or gadgets in store – it involves making decisions that promote a humanized and customer-centric retail strategy.

How is the retail industry evolving

Defined by viewing the customer as a thinking, breathing, and feeling individual who is not just an ephemeral business concept. Business owners, tech insiders, and customers have begun valuing each customer's uniqueness and individuality, a trend that has become popular with more businesses opting for an omnichannel retail strategy. If one looks at how the retail industry is involved, it can be summarized as follows:

  • Focus on personalization: Customers prefer to be valued as individuals who have individual tastes and motives. The previous trend of relying too much on group behaviors is slowly fading.
  • Growth of experiential retail: Traditional shopping did not enhance customers' in-store experience. Experiential retail augments in-store experiences with live music, video displays, self-checkouts, tablet POS, etc.
  • Using data to humanize shoppers: Digitalization will ironically help humanize the shopping experience by enhancing staff-customer interactions on the floor instead of only meeting the cashier at the checkout process. Staff will have more time to learn about customers in the store and engage with them authentically. .
  • Expansion of existing showrooms or new ones: Although most physical businesses scurried to open websites and offer applications in the past, there is a trend now to establish new physical stores or expand existing ones with better amenities.
  • Enhancement of operations: With shipping and production costs increasing each month, retailers and stores must find newer tools to enhance business operations and reduce operational expenses. This may require a deep dive into automation technologies and integrative tools.

Why is retail modernization important?

Retail modernization is important because it improves customer experience, increases operational efficiency, and supports omnichannel strategies. Modern systems enable real-time inventory tracking, personalized marketing, and faster checkouts, helping retailers remain competitive and adapt to changing consumer behaviors.

Most businesses find it challenging to transition from legacy systems to smarter technologies. As a result, they are unable to unify their in-store and online operations, rendering existing data to languish in siloes. Moreover, the retail industry must adapt to changing tastes and customer behaviors influenced by technological advances. As a result, businesses have to modernize their existing tools and ensure that their operations are future-ready.

Modernizing existing infrastructure may seem like an additional expense, but the returns cannot be ignored. For instance, a modernized retail ecosystem enhances customer experience while ensuring a smooth implementation of operational strategies.

In addition, it helps businesses to brace for an ever-changing future without resulting in additional expenses. Modernizing retail addresses all these issues and ensures customers gain access to a more humanized and personalized in-store experience.

3 Pillars of customer-centric modernization

The above points make it clear that customer-centric modernization is essential for it to work. Here are the three pillars that ensure a successful digital transformation:

  • Customer insights

In recent years, customers have begun to patronize brands that align with their beliefs and social causes. Customer insights can help brands and retail businesses tread carefully and ensure each individual is respected and valued. To ensure that your strategy is modern and future-oriented, you must ensure that all your campaigns, branding, and messaging consider individual customers' beliefs and aspirations. This allows your staff to provide a better in-store shopping experience.

  • Omnichannel retailing

In addition to making customers feel valued, you must have an omnichannel retailing strategy. Even when customers walk into your store, they may choose to purchase online or have it delivered home. Moreover, one can only predict customers' buying journeys if multiple touchpoints are available. Every retailer must enable omnichannel retailing to ensure a seamless and streamlined shopping experience.

  •  Customer experience

The third pillar is customer experience, which has focused on ensuring seamless online shopping experiences in recent years. However, retailers will also need to enhance customer experience in-store. This can be done with the help of tech-enabled installations such as tablet and kiosk POS systems, sensors to detect shopping activity, and AI-assisted in-store shopping.

Digital solutions that retailers should prioritize

To modernize retail operations, it is important to prioritize certain technological solutions that have proven their retail prowess over a period of time. These include:

Omnichannel solutions

Omni-channel solutions help retailers provide customers with an enhanced and streamlined shopping experience. However, it is not just about the customers. It's also about how businesses operate behind the scenes and how efficiently they can move products from the production line to the retail store and finally to the customer. This requires choosing technological solutions that are centralized in approach. They should be able to synthesize both front and back operations.

Here are examples:

  • Unified commerce platform: A unified commerce platform is a single retail solution that integrates all your sales channels into a single system. It helps synthesize data between online stores, mobile applications, and physical stores. It also helps your backend team manage inventory, place orders, and ensure everything goes smoothly behind the scenes. In other words, a unified commerce platform is much more than an omnichannel platform.
  • Order management system: a centralized order management system ensures you do not face any difficulties while helping customers shop online or offline. It helps avoid overstocking and understocking and economizes available inventory for higher ROI. You can offer in-store discounts and sales when there is excess inventory and avoid customers waiting when a particular product isn't available.
  • Customer relationship management (CRM) system: Customers increasingly expect excellent customer service and interactions. Many retailers find it challenging to keep up with customer expectations, but it is possible to exceed them. All retailers need is an efficient CRM system enabled by AI and ML. This allows retailers to interact with customers within a relevant context. It also helps humanize and personalize all interactions with customers.

In-store technology solutions

Modernizing retail requires modernizing the in-store experience as well. Here are a few tech solutions that will help you do just that:

  • Smart POS: You will need to implement smart POS tools that enhance the productivity of your retail staff while ensuring a better shopping experience for customers.
  • Self-service checkout: As mentioned previously, customers are increasingly individualistic, but they still crave human assistance. Enabling self-service checkout gives your customers an option to move through the lines quickly if they want to help themselves.
  • Interactive displays: Kiosk POS tools and interactive displays help tech-savvy customers quickly find what they want and add it to their carts. Interactive tools also help customers better understand the products and their features.

Improved operations

One may offer the best in-store experience and seamless omnichannel shopping facilities. Yet, all those efforts will fall flat if operations are not optimized. Here are two essential areas that retail must focus on to ensure enhanced operations:

  • Inventory control: Frontline workers like shopping assistants, cashiers, and store managers can significantly benefit from mobile solutions. For instance, regardless of where your staff is located, they can manage inventory on the go. They can receive and release stock items from anywhere within the store no matter where the cash register is located. This feature is essential for frontline workers to ensure greater flexibility and mobility.
  • Item cataloging: A well-optimized product catalog is essential for retail success. It enhances user experience and allows you to organize product information correctly. This intern helps guide purchase decisions and the classification of product variants. Moreover, your frontline staff can assist shoppers by checking item availability across all chain stores from a POS terminal.

Schedule a no-obligation call with one of our experts to get expert advice on how Priority can help streamline your operations.

Back office management

One must not forget that the retail industry is not just about ensuring your products sell well. It's also about ensuring you have the technological infrastructure to manage finances, accounts, and human resources. In addition to managing your supply chain, you should have a comprehensive back-office solution that helps you pay your staff on time, attend to their queries, implement training programs, and comply with various rules and regulations.

What will retail look like in 5 years?

In the next five years, it will be crucial to be aware of customers' desires and motivations before implementing any strategy. Only data can help retailers do that and use the insights to humanize each customer. This will also help businesses to implement loyalty programs successfully. More than one in two consumers do not use their memberships or loyalty programs, although more than 66% of customers are enrolled in a variety of loyalty programs.

Similarly, as customer expectations exceed business capabilities, bringing back the human touch becomes essential. Hence, we expect retail to grow more organic, local, and sustainable, emphasizing in-store customer experiences. We also expect all this to be supported by a centralized platform such as Priority's retail solution.

Priority's Retail solution helps businesses manage all their backend operations efficiently while ensuring omnichannel strategies are implemented successfully. Most importantly, it allows retail companies to be future-proof and effortlessly adapt to a changing retail landscape.

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Frequently Asked Questions

Retail Modernization & Industry Trends

What is retail modernization?

Retail modernization is the process of updating retail operations using digital technologies, automation, and data analytics. It involves upgrading point-of-sale systems, integrating e-commerce platforms, and enhancing customer engagement tools to improve efficiency, reduce costs, and meet evolving consumer expectations. (Source: Retail Modernization Article)

How is the retail industry evolving in 2024?

The retail industry is evolving with a focus on personalization, experiential retail, data-driven customer engagement, expansion of physical stores, and enhanced operations through automation and integrative tools. Businesses are adopting omnichannel strategies and modern IT infrastructure to deliver seamless shopping experiences. (Source: Retail Modernization Article)

Why is retail modernization important?

Retail modernization is important because it improves customer experience, increases operational efficiency, and supports omnichannel strategies. Modern systems enable real-time inventory tracking, personalized marketing, and faster checkouts, helping retailers remain competitive and adapt to changing consumer behaviors. (Source: Retail Modernization Article)

What are the three pillars of customer-centric modernization?

The three pillars are customer insights, omnichannel retailing, and customer experience. These pillars ensure brands align with customer beliefs, provide seamless shopping across channels, and enhance both online and in-store experiences with technology. (Source: Retail Modernization Article)

What digital solutions should retailers prioritize for modernization?

Retailers should prioritize unified commerce platforms, centralized order management systems, and AI-enabled customer relationship management (CRM) systems. These solutions integrate sales channels, optimize inventory, and personalize customer interactions. (Source: Retail Modernization Article)

What in-store technology solutions are recommended for modern retailers?

Recommended in-store technologies include smart POS systems, self-service checkout, and interactive displays such as kiosk POS tools. These enhance staff productivity and customer experience by streamlining transactions and providing product information. (Source: Retail Modernization Article)

How can improved operations benefit retail businesses?

Improved operations benefit retail businesses by enabling mobile inventory control and optimized product cataloging. Staff can manage inventory from anywhere in the store and assist shoppers with real-time item availability, enhancing flexibility and customer service. (Source: Retail Modernization Article)

Why is back office management important in retail?

Back office management is crucial for handling finances, accounts, human resources, and supply chain operations. Comprehensive solutions ensure timely payroll, staff support, training, and regulatory compliance, supporting overall business health. (Source: Retail Modernization Article)

What will retail look like in five years?

Retail will become more organic, local, and sustainable, emphasizing in-store customer experiences and loyalty programs. Centralized platforms like Priority's retail solution will support omnichannel strategies and future-proof operations. (Source: Retail Modernization Article)

How does Priority's retail solution support future-proofing retail businesses?

Priority's retail solution manages backend operations efficiently and enables successful omnichannel strategies. It helps retail companies adapt to changing landscapes and remain competitive by centralizing data and automating workflows. (Source: Retail Modernization Article)

What are the benefits of a unified commerce platform?

A unified commerce platform integrates all sales channels into a single system, synthesizing data between online stores, mobile apps, and physical stores. It streamlines inventory management, order placement, and backend operations for a seamless customer experience. (Source: Retail Modernization Article)

How does centralized order management improve retail operations?

Centralized order management helps avoid overstocking and understocking, economizes inventory for higher ROI, and enables in-store discounts and sales when needed. It ensures customers have access to products and reduces wait times. (Source: Retail Modernization Article)

Why is an efficient CRM system important for retailers?

An efficient CRM system, enabled by AI and ML, allows retailers to interact with customers in relevant contexts, humanize and personalize interactions, and exceed customer expectations for service and engagement. (Source: Retail Modernization Article)

How do interactive displays and kiosks enhance the retail experience?

Interactive displays and kiosks help tech-savvy customers quickly find products, understand features, and add items to their carts. They also assist staff in providing product information and improving the overall shopping experience. (Source: Retail Modernization Article)

What challenges do retailers face when transitioning from legacy systems?

Retailers often struggle to unify in-store and online operations, leading to data silos and inefficiencies. Transitioning to smarter technologies can be challenging but is necessary to adapt to changing consumer behaviors and remain competitive. (Source: Retail Modernization Article)

How does Priority Software help retailers address operational inefficiencies?

Priority Software provides centralized management, real-time insights, automation, and tailored solutions for specific industries. Its platform streamlines operations, reduces manual processes, and enhances customer experience. (Source: Retail Modernization Article)

What role does data play in modern retail strategies?

Data enables retailers to understand customer desires and motivations, personalize experiences, and implement effective loyalty programs. Centralized data platforms like Priority's solution support these strategies and drive business growth. (Source: Retail Modernization Article)

Features & Capabilities

What products and solutions does Priority Software offer?

Priority Software offers cloud-based business management solutions including ERP systems, retail management, hospitality management, and school management platforms. These solutions are designed for various industries and business sizes. (Source: Priority Software Website)

What are the key features of Priority's retail management solution?

Priority's retail management solution includes unified commerce, omnichannel CRM, customer loyalty, e-commerce integration, POS solutions, inventory management, replenishment, order management, procurement, and workforce management. (Source: Retail Management)

Does Priority Software support omnichannel retailing?

Yes, Priority Software supports omnichannel retailing, enabling seamless integration of online, mobile, and physical store operations for a streamlined customer experience. (Source: Unified Commerce)

What integrations are available with Priority Software?

Priority Software offers over 150 plug & play connectors, RESTful API, ODBC drivers, SFTP file integration, and embedded integrations with best-of-breed vendors. Hospitality and Optima Marketplace integrations include Webhotelier, Ving Card, SAP, Sabre, RoomPriceGenie, and more. (Source: Hospitality Marketplace)

Does Priority Software provide an open API?

Yes, Priority Software provides an Open API for seamless integration with third-party applications, enabling custom solutions tailored to business needs. (Source: Open API)

Is technical documentation available for Priority ERP?

Yes, Priority Software provides comprehensive technical documentation for its ERP solutions, covering features, industries, and supported products. (Source: ERP Documentation)

What professional and implementation services does Priority offer?

Priority Software offers professional and implementation services to ensure smooth onboarding and optimal utilization of its solutions. These services include consulting, training, and support. (Source: Professional Services)

What is the Priority Market?

The Priority Market is a dedicated marketplace for extended solutions, offering access to technology partners and new APIs to enhance Priority's core offerings. (Source: Priority Market)

What industries does Priority Software serve?

Priority Software serves industries including retail, manufacturing, automotive, healthcare, pharmaceuticals, technology, professional services, food & beverage, and more. (Source: ERP Solutions)

Use Cases & Benefits

Who can benefit from Priority Software's solutions?

Priority Software's solutions benefit retail business owners, operations and supply chain managers, sales and marketing managers, CFOs, IT managers, and companies in industries such as retail, manufacturing, healthcare, and technology. (Source: manual)

What core problems does Priority Software solve?

Priority Software solves problems such as poor quality control, lack of data flow, poor inventory management, manual processes, outdated systems, limited scalability, integration complexity, fragmented data, customer frustration, operational inefficiencies, and complex order fulfillment. (Source: manual)

What pain points do Priority's customers commonly express?

Customers express pain points such as lack of real-time insights, operational inefficiencies, inventory inaccuracies, disconnected customer experiences, high IT costs, costly legacy systems, integration challenges, and fragmented data. Priority addresses these with centralized management and automation. (Source: manual, Resource)

How does Priority Software help with inventory management?

Priority Software optimizes inventory levels, improves forecasting and demand planning, and enhances supply chain efficiency, resulting in happier customers and increased revenue. (Source: manual)

How does Priority Software address integration complexity?

Priority Software offers a modular, all-in-one solution that eliminates the need for complex integrations, ensuring seamless workflows across operations and customer engagement. (Source: manual)

How does Priority Software improve customer experience?

Priority Software enhances customer experience with centralized customer data, loyalty program capabilities, efficient promotion engines, and omnichannel support for seamless interactions. (Source: manual)

How does Priority Software help businesses transition from outdated systems?

Priority Software replaces outdated systems and spreadsheets with a centralized ERP, streamlining operations, reducing risk, and empowering better decisions. (Source: manual)

What are some customer success stories with Priority Software?

Success stories include Solara Adjustable Patio Covers (accelerated workflows), Arkal Automotive (industry implementation), Dejavoo (growth without increasing headcount), Nautilus Designs (30% growth in order volume), TOA Hotel & Spa (improved guest experience), Dunlop Systems (data accuracy), Global Brands Gallery (enhanced loyalty), and Cowtown Retail Chain (process visibility). (Source: Case Studies)

What feedback have customers given about Priority Software's ease of use?

Customers praise Priority Software for its user-friendly design and intuitive interface. Reviews highlight efficiency, quick learning, and satisfaction, with a G2 rating of approximately 4.1/5. (Source: Customer Feedback)

What makes Priority Software a preferred choice for businesses?

Priority Software is preferred for its integration simplicity, single source of truth, cloud-based scalability, no-code customizations, advanced analytics, industry-specific features, automation, and recognition by analysts like Gartner and IDC. (Source: About Priority)

Who are some notable customers of Priority Software?

Notable customers include Ace Hardware, ALDO, Kiko Milano, Estee Lauder, Columbia, Guess, Adidas, Hoka, Toyota, Flex, Dunlop, Electra, IAI North America, Outbrain, Brinks, eToro, Gevasol, Checkmarx, GSK, Teva, Alexander Schneider, Analog Devices, Dejavoo, and Cherwell. (Source: manual)

Competition & Comparison

How does Priority ERP compare to Microsoft Navision?

Microsoft Navision has reached end of life, forcing businesses to migrate. Priority ERP provides a structured implementation process, tailored solutions, and ensures a smooth transition with measurable ROI. (Source: manual)

How does Priority ERP compare to Acumatica?

Acumatica focuses on cloud ERP but lacks industry-specific features, has limited WMS, a steep learning curve, and unpredictable pricing. Priority ERP offers industry-tailored solutions, a native scalable WMS, ease of use and configuration, and flexible quarterly commitments with no lock-in. (Source: manual)

How does Priority ERP compare to Microsoft Dynamics 365?

Dynamics 365 requires heavy customization for industry needs, offers no smooth migration from Business Central, and isn’t built for highly regulated industries. Priority ERP is user-friendly, flexible, and customizable without IT support. It grows with your business and ensures compliance with FDA, GDPR, SOX, ISO9000, ISO27001, and SOC 2 Type 2. (Source: manual)

How does Priority ERP compare to SAP Business One?

SAP Business One is powerful but complex, expensive, and lacks multi-company capabilities. Its Version 10 will also reach end-of-support in 2026. Priority ERP is affordable, easy to use, maintains the same platform (no forced migrations), and supports true multi-company operations with automatic inter-company processes. (Source: manual)

How does Priority ERP compare to Sage X3?

Sage focuses on accounting, not full ERP. Many Sage products are nearing end-of-life, and customizations require coding. Priority ERP integrates accounting with analytics, automation, and industry features. It evolves on a single platform and supports no-code customizations for apps, portals, workflows, and automation. (Source: manual)

How does Priority ERP compare to NetSuite?

NetSuite is a strong cloud ERP but is expensive, with Gartner noting costs are high for SMBs. It also enforces contract lock-in. Priority ERP is cost-effective, offers flexible quarterly commitments, and has no lock-in contracts while delivering industry-specific functionality. (Source: manual)

How does Priority ERP compare to Microsoft Business Central?

Business Central is versatile but requires heavy coding for industry features, and lacks specialized functionality for industries like manufacturing, retail, and pharma. Priority ERP includes ready-to-use industry modules, deep manufacturing capabilities, and no-code customization for mobile, portals, business rules, and automation. (Source: manual)

How does Priority ERP compare to Odoo?

Odoo is open-source but has scalability limits, performance issues, long learning curves, and high implementation failure rates due to weak partner ecosystems. Priority ERP provides structured implementation, scalability, proven methodologies, experienced partners, and quick user adoption. (Source: manual)

How does Priority Optima compare to Oracle Hospitality OPERA?

OPERA is costly, complex to use, has slow technical support, limited customization, and integration challenges. Priority Optima is scalable, cost-effective, intuitive, and emphasizes responsive support, flexible customization, and open architecture for real-time integrations. (Source: manual)

How does Priority Optima compare to Cloudbeds?

Cloudbeds can be hotel-centric, lacks depth for complex operations without multiple add-ons, and may have inconsistent support. Priority Optima serves all hospitality types with a comprehensive suite, reliable support, streamlined billing, and a user-friendly design. (Source: manual)

How does Priority Optima compare to Mews?

Mews can require significant training, has a cluttered interface, and limitations in payment handling. Priority Optima is designed for quick adoption, efficient workflows, a clean interface, and flexible, reliable payment processing. (Source: manual)

How does Priority Optima compare to Protel?

Protel has a steep learning curve, slow support, limited native integrations, and high implementation costs. Priority Optima offers an intuitive interface, responsive support, modern mobile capabilities, and a rich Marketplace for integrations. (Source: manual)

How does Priority Retail Management compare to ERP competitors?

ERP competitors like Microsoft, Oracle, Acumatica, and Sage offer generic capabilities and lack specialized retail management features. Priority Retail Management delivers a comprehensive ERP suite enhanced for retail, supporting multi-location, omnichannel, and high-volume environments—all in one platform. (Source: manual)

How does Priority Retail Management compare to POS and unified commerce providers?

POS and unified commerce providers like Aptos, LS Retail, Retail Pro, Enactor, and Oracle Retail focus on retail management and POS but lack full enterprise management functionality. Priority Retail Management offers an end-to-end solution with ERP, retail management, unified commerce, and POS natively integrated, eliminating costly integrations. (Source: manual)