Unlocking the future of retail: five key trends

In the retail world, staying ahead of the curve requires a deep understanding of emerging trends and challenges, sweating existing capabilities and investing in the right technology to keep giving customers exceptional experiences.

Gate One is leading the charge in driving tech enabled, meaningful digital transformation for many brands. One critical way of doing this is immersing ourselves in the thick of the discussion around what the future consumer experience requires of organisations.

Our experts in this space Kellie Hill, Scott Ellis and Alex Zetter hosted a roundtable at this year’s Retail Gazette Future Consumer event in London, facilitating conversation with some of the industry’s leading and emerging brands to highlight the challenges and solutions surrounding this topic.

Five critical themes emerged. Let’s dive into these themes, uncover the root causes of the challenges and explore possible solutions to ensure retail organisations can thrive.

1. Data and analytics: building a strong foundation

Challenges
Solid data is the backbone of any successful AI or analytics initiative. It ensures reliable insights and informed decision-making. However, many organisations are still at the initial stages of data maturity and struggling with foundational data quality. Without robust data, efforts to leverage advanced analytics and AI will fall short, so this must become high priority.

Causes

• Legacy systems and siloed data make it difficult to maintain accurate and comprehensive data.
• A lack of investment in data management infrastructure hampers progress.
• Lack of skills and expertise to improve data quality and translate the data into action focused insights to fuel more effective marketing campaigns.

Solutions

• Assess the effectiveness of existing tools versus strategic ambitions, invest in modern data management tools, train staff on data importance and regularly audit data for accuracy to drive better business outcomes.

Want to know more? Read our insights on how to build a data-led centric organisation to drive better outcomes.

2. Human-centric AI: balancing technology with authenticity

Challenges
Integrating AI and Generative AI without losing the human touch can be tricky. Organisations need expert support to kick-start internal initiatives that foster a culture that still delivers authentic customer interactions but is powered by emerging technology behind the scenes.

Causes

• Over-reliance on technology can lead to impersonal customer experiences.
• A focus on efficiency sometimes overshadows the need for genuine human connection.

Solutions

• AI should enhance human capabilities, not replace them. Personalised experiences should feel authentic and considerate, even when powered by AI. Fostering a customer-obsessed culture that prioritises genuine interactions is the priority through:
  • training employees to use AI effectively and the impact;
  • encouraging a company-wide focus on meaningful AI;
  • and creating ethical AI principles and standards to ensure customer experiences that harness the power of AI are always developed with the user at the heart of every interaction.

Learn more about ethical AI by watching our video on AI for Good and how to craft memorable customer experiences using GenAI.

3. Future-ready culture: embracing change and innovation

Challenges
Building a culture that embraces innovation and the inevitability of failure is challenging and organisations desperately need guidance on where to invest and how to get started.

Not only this, leaders need long-term strategic support to prepare their organisation for the evolving work ethos of future tech-savvy generations. This requires foresight, adaptability and organisational reform to compete in the race for talent.

Causes

• Resistance to change and fear of failure can stifle innovation.
• Misalignment between current workplace practices and the values of younger generations.
• Not knowing where to start and getting lost in the noisy debate around the future of the workforce and the latest technology trend hype

Solutions

• Foster a growth mindset by encouraging employees to embrace change and innovation. This involves creating a safe space for experimentation and learning from failures and having an agile strategy.
• Empower frontline workers by equipping them with the tools and expertise they need to drive the business forward. This empowerment is essential for mobilising operations and adapting to future challenges.
• Promote a culture that values continuous learning and innovation through immersive and interactive training programmes and resources.
• Encourage idea-sharing and failure that leads to constant learning and improvement

Dive deeper into this topic by watching our video with AI Expert Umbar Shakir on how AI will unlock the potential of employees, not replace them.

4. Sustainability: proactive approaches for long-term success

Challenges
Navigating new regulations, consumer expectations and balancing the cost around sustainability can be complex and a delicate act.

Causes

• The pressure to comply with evolving regulations and meet consumer demand for sustainable practices can lead to the wrong approach, behaviours and negative outcomes, tarnishing brand reputation.
• Initial costs of implementing sustainable practices can be daunting and leaders need expert guidance on where to focus investment to benefit the organisation.

Solutions

• There’s savings to be had in being proactive. By adopting sustainable practices early, this can mitigate costs and improve brand reputation. For instance, optimising supply chains and updating packaging ahead of regulatory deadlines can lead to long-term savings.
• Sustainable practices can also lead to customer loyalty. A proactive approach to sustainability can position businesses as leaders in their industry

Want to know more about embracing sustainability as a success-lever? Read our latest insights here including embedding sustainability within your company ESG strategy, turning sustainability strategy into action, and using AI for good in the sustainability space.

5. Gen Z engagement: understanding the new workforce and consumer segment

Challenges
There are two sides to the Gen Z challenge – appealing to this demographic as consumers but also as employees.
Some organisations have invested heavily on targeting Gen Z consumers and others are just starting to do so. Yet many organisations haven’t invested in understanding Gen Z’s values and work-life expectations, resulting in a pressing need to transform their entire employee experience and talent strategy to remain future-fit.

Causes

• Enhancing the recruitment process to attract Gen Z talent is crucial, with traditional work environments and recruitment methods failing to resonate.
• A lack of authenticity and relevance in brand interactions can deter Gen Z engagement.
• This demographic have unique expectations from brands compared to older generations, making it challenging for less in-tune brands to appeal to this complex audience.

Solutions

• Gen Z values authenticity and relevancy from brands, both as consumers and employees. They prioritise maintaining work-life balance and want their work to have meaning. Business leaders must continuously evolve their CX and EX strategies through feedback and research.
• Other generations also matter and drive revenue, don’t abandon your brands purpose and values to win over the Gen Z consumer. Attribute the right level of focus and investment in these segments based on your organisations purpose and values.
• Just 25% of Gen Z are on LinkedIn. Brands can improve recruitment with advertising jobs on social media, showing transparent salaries, while evoking an inclusive tone and language in job descriptions.
• Engage with Gen Z on platforms they use (hello TikTok) and understand their preferences.

Read or listen to our view on cracking the Gen Z code and what brands need to do to unlock CX success here.

Key future retail trends

The future of retail and consumer business looks to be shaped by data, human-centric AI, a future-ready culture, sustainability, customer experience optimisation and Gen Z engagement.

Proactively tackling these challenges and embracing change will position your business for long-term success, ensuring you are not only prepared for the future but also able to lead and innovate in the dynamic world of retail and consumer business.