TECH
Holiday Prep Make a list — and check it twice
By Dan Berthiaume Summer may be in full-swing, but savvy retailers are already planning for the upcoming holiday shopping season. There is a lot riding on it: Holiday sales hit $707.5 billion last year and retailers that are not prepared to take advantage of the surge will put themselves at a competitive disadvantage. In fact, with the rise of technology, retailers need more time than ever before to effectively plan for the increased traffic and sales — both in-store and online. It’s essential they take the time to learn and deploy new technologies to attract customers. Also, sharp, sudden increases in customers and spikes in sales volume can put a serious strain on the technology systems that retailers now depend on to keep operations running smoothly. Here is some advice on the steps retailers should start taking now to prepare for the holidays in the technology areas of artificial intelligence (AI), mobile, and warehouse management, as well as a look at what two retailers have done to create POS-level visibility that pays dividends during the holidays and all year long. Artificial Intelligence (AI) Retailers seeking to attract their best customers and keep store inventory properly stocked this holiday season may want to investigate the potential of artificial intelligence (AI) technology. According to Samrat Sharma, data, marketing and strategy leader at PwC, AI helps ensure the right products are sold to the right customers, at the right price. “Getting the right consumers into the store requires more localized activation of AI,” said Sharma. “You need dynamic pricing. There are two forms; some retailers have their own loyalty app which enables them to field promotions that get customers into the store. You can also change pricing for localized demand, 24
time of day and weather. However, this causes a supply chain ripple effect, so you need to leverage AI to make sure out-of-stocks are minimized.” In addition, Sharma said retailers can apply AI technology to address long-cycle weather and seasonality issues as they prepare their holiday product assortment. “A lot of things can impact the shopper, and it’s not easy to get everything absolutely right,” said Sharma. AI and machine learning solutions allow you to deplete your store inventory in the right way, and manage your assortment and mix with external factors you couldn’t predict. The last thing you want is aggregate markdowns. AI lets you manage incentives to get customers in when you want them.” Mobile Omnichannel specialty food and gift retailer Harry & David is familiar with the surges in mobile traffic that accom-
pany the holiday season. Oscar Castro, VP, e-commerce & marketing for Harry & David, said focusing on three key areas of mobile technology is critical to holiday m-commerce success. “To prepare for the mobile holiday rush, retailers should focus on three key areas: speed/performance, the mobile user experience, and marketing optimization,” said Castro. “On-the-go shoppers expect a speedy, efficient experience that works well on a smaller screen.” Rather than simply shrinking the desktop shopping experience, Castro advises retailers to understand how their mobile users’ behavior differs from desktop users. “At Harry & David, we provide customers with curated gift guides, personalized product recommendations, and easy reordering capabilities — such as our ‘gift list’ function, which was integrated into our mobile experience in 2018, and helpful customer reviews,” said Castro. For the 2018 holiday season, Harry & JULY/AUGUST 2019 CHAINSTOREAGE.COM