Welcome To The Age Of "Total Retail"

By Anna Rose Welch, Editorial & Community Director, Advancing RNA

New PwC study shows customer-facing technology is pushing customers to expect more than a multi-channel approach to shopping

Technology is not only changing the way consumers interact with stores, but it’s also reshaping consumers expectations for their favorite retailers, a new PwC report shows. The report, entitled “Achieving Total Retail: Consumer Expectations Driving the Next Retail Business Model,” has found that the multi-channel approach is no longer cutting it for today’s tech-savvy consumer. Today’s shopper now expects stores to transform themselves into a “Total Retail” business. 

Steven Barr, PwC’s retail and consumer practice leader says “Consumers now view multichannel shopping as a given, and the costs and complexities of managing a channel model are too great and offer too few rewards to benefit the customer experience. Today’s non-stop shoppers have taken things into their own hands, becoming more tech-savvy than retailers. Consumers have the tools at their fingertips to immerse themselves into the retail brand. Our report finds that consumers have strict expectations that challenge today’s shopping experience and, in response, retailers should embrace what we at PwC are calling Total Retail.”

The report reveals that consumers have eight key expectations for stores that retailers should be aware of in order to achieve the Total Retail Model. All the talk about Big Data and analytics is well founded, considering more consumers are craving personalized offers, the results show. These offers could be provided via digital coupons, exclusive content, or social media promotions. However, security still remains a primary fear for shoppers and keeps them from relying too heavily on their smartphones for shopping.  The report suggests that a company looking to emphasize security should build their capabilities or add proper capabilities through acquisitions.

However, while 37 percent of shoppers say that they avoid shopping on their smartphone because of security concerns, there are still some more technical reasons consumers avoid shopping via mobile. Of those who do not shop on their phones, 32 percent say they don’t own a smartphone and 33 percent say that the size of the screen limits their shopping experience. However, as more consumers acquire smartphones and smartphones begin featuring larger screens and more advanced capabilities, a Total Retailer will need to be prepared to provide a seamless experience on all devices, whether it be a PC, Tablet, mobile app, or web browser. This also includes easy access to inventory that is updated in real time. In fact, 45 percent of consumers consider the ability to check other store or online stock quickly one of the most important in-store technologies. To provide this, a Total Retail store will need to pay close attention to their supply chain, product tracking, and warehouse/distribution technologies, upgrading as needed.

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