DECEMBER - 2022retailtechinsights.com8IN IN MY OPINIONTechnological Innovation for Retailers' Survival Today and Growth TomorrowJust like any industry, the retail sector is also feeling the impact of various global processes, affecting shoppers' habits and forcing retailers to adapt fast in order to remain competitive. In the age of digitalization, familiar solutions are increasingly being replaced by new innovative technological products.Technologies­The Panacea for All Challenges?At present, the biggest challenges facing the retail sector can only partly be resolved with the help of technology. This is firstly due to the fact that energy prices are soaring not only in Latvia but throughout the Baltic States. According to our customer survey, 88% of people are worried about whether they will be able to pay their bills this winter. High inflation is also impacting food prices and shoppers' habits: Baltic consumers spend over 20% of their monthly income on food. Right now, shoppers are increasingly scrutinizing how they can save, what products to buy, and whether they can afford purchases, with the exception of everyday staple goods. Demand for value-for-money products is growing, and over 40% of shoppers are seeking cheaper alternatives to their favorite products. Needless to say, this also impacts retailers' product offerings, forcing them to seek a growing range of new solutions.Secondly, the industry is still experiencing the effects of Covid-19, exacerbated by the war waged by Russia in Ukraine. These effects are manifesting themselves in the form of disruptions and breaks in logistics chains resulting in delayed deliveries, more expensive products, increased scarcity of certain raw materials, rising production, and, thus, retail costs, all of which impact business results. In these circumstances, the challenge for retailers is to find ways to make their operations more efficient and to cover rising costs, at the same time minimizing their impact on customers. This is where technology plays a key role, with stores and warehouses introducing various tools for time planning and keeping track of product "sell by" dates, along with sorting machines and other AI and RPA robotic solutions that facilitate process automation and more efficient operations. Artificial Intelligence helps to predict the products that shoppers will buy and ensures the optimal use of resources: if the system calculates the shortest delivery route, less fuel is consumed, fewer harmful emissions are released into the environment, while precise product planning cuts food waste. A New Trend­The Unstaffed StoreOne trend that emerged during the pandemic, and is becoming increasingly popular globally, is the concept of the unstaffed store. In the Baltic States, too, the first unstaffed stores are already in operation, where shoppers register via a special app, sensors register the products they choose, and, on the way out, all they have to do is pay automatically. The store format is a bit different in terms of its design but essentially similar. A By Anton Antonenkov, Head of IT Enterprise Solutions & Data Analytics, Rimi Baltic GroupAnton Antonenkov
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