Covid-19 has accelerated the adoption of these technological retail trends that were being tested out by some large industry players.
The retail industry has been one of the hardest hit in this pandemic. And while there is uncertainty about what lies ahead for retail in the post-COVID-19 world, it has become clear that technology will play a key role in driving the growth for the sector. We, at CPCP, tried to uncover some industry trends through our M&A Industry Insight – RetailTech report.
2020 has witnessed a huge acceleration of mobile and other digital-first shopping experiences. Technology investments have shifted away from online-centric to a balance of in-store and online, with 57% investing equally in both, thus using an omnichannel approach.
Predictive analytics, smart tools, and data-driven solutions will continue to solve issues such as inventory management and help in creating newer and seamless supply chains. AI and machine learning will play a key role in expediting supply chain and inventory tasks. While people remain hesitant to return to the shopping malls anytime, AR & VR are promising to create more immersive and connected user experiences to replicate the service and aesthetics customers enjoy in a physical store. Technology seems to be a key factor for retail players to remain relevant in an environment where the retail world is changing rapidly.
The retail sector is going through a turbulent time in the current climate and nobody is sure what is going to happen in the short or long-term future.
FOGO is the new buzzword. Shoppers are now facing Fear Of Going Out (FOGO). People are becoming more cautious, especially when it comes to offline shopping, and many are shifting their purchasing habits to limit their shopping trips. Consumers are increasingly doing “pre-store research” where they look up store and product info online before heading to the shop.
FOrbes
We tried to cover some industry trends in the M&A space through our M&A Industry Insight – RetailTech
- Increase in penetration of contactless payments is expected to drive the growth of the POS system industry at a CAGR of 6% over 2020-2024
- Total deal value for the first 6-months of 2020 was $30.21 USD billion
- The coronavirus outbreak has accelerated supply chain disruption. Companies are investing in emerging supply chain technologies to mitigate this risk
- Deals and funding to retail technology companies surpassed $14.6 billion in the first half of 2020 as COVID-19 accelerated e-commerce sales growth; the sector is benefiting from changes though investors tightened their criteria
Access the full “RetailTech M&A Insight October 2020” below
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