The retail industry is going through an extraordinary time of digital disruption right now, with the continuing accelerating growth of mobile e-commerce having a massive impact on the traditional high street. With the recent announcements of store closures from the likes of House of Fraser and Marks and Spencer, along with the collapse of retail chains such as Maplin and Toys R Us, many commentators are arguing that the high street is now in terminal decline. In this piece, however, Anil Gandharve, VP & head of retail, CPG & manufacturing, Mindtree, tells RetailTechNews that if you look towards those forward-thinking retailers who are rapidly adopting new forms of artificial intelligence (AI) and data analytics technologies to serve our ever-more demanding modern consumers, you will see a far more positive and brighter outlook for our high streets, shopping malls, supermarkets and other communal shopping zones in our towns and cities.

Take a glance at the future plans of shopping mall giant, Westfield, with its ‘Destination 2028’ concept mall, for example, for a truly exciting vision of where the retail experience is headed in a decade. Or, over in the U.S., consider the latest AI personal shopper technologies being developed by the likes of traditional retail giant Walmart. These, and other examples of new technology innovation, should fill us with hope for the future of physical retail, in addition to the continuing rise of mobile e-commerce.

How AI is reshaping retail

Artificial intelligence (AI) is already being implemented across the value chain in the retail industry, because it offers immense benefits for consumer packaged goods (CPG) companies in three key areas: retail, operations, and supply chain.

Unfortunately, the rate of adoption to date has been relatively slow, as many retailers still don’t see a short-term return on investment (ROI) – something that is often due to a lack of a company-wide understanding of how AI will impact both the overall business and, most importantly of all, the ultimate customer experience. So, there is often a disconnect between business and IT decision makers within retail organisations.

Some retailers are using AI to automate their stores. Others are using AI and machine learning to support retail and marketing activities centred on consumer experience. While some are developing AI initiatives in data analytics that are focused on loyalty, segmentation, personalised offers, and customer lifetime value.

AI and machine learning help retail brands talk directly to their customers on a far more personalised level, because these systems continually learn from past behaviour, so the retailer has a much better understanding of individual consumer behaviour. The consumer is delivered a tailored and superior retail experience, from retailers using technologies such as conversational commerce, image-based search analytics, and mobile app integration into the overall ‘omnichannel’ experience.

Developing AI for future success

Personalised customer experiences, omnichannel retailing, and artificial-intelligence (AI) powered sales, marketing, and in-store technologies are going to drive the retail industry over the next decade, serving the needs of tomorrow’s consumers.

Our retail future is all about delivering great, personalised customer experiences across every channel – mobile, online, and in-store. And the harsh commercial reality is that retailers who don’t invest in AI-powered and data-driven digital channels risk going the same way as Maplin or Toys R Us.

Far from heralding 'the end of the high street', our current phase of disruption is going to result in very different-looking shopping malls, supermarkets, and other brick-and-mortar stores and retail destinations in the future, with far more engaging and customer-centred digital experiences that are much more closely integrated into the in-store experience.

Shopping mall specialist Westfield, for example, has extrapolated from the latest trends in AI-driven innovations and, from these, made a number of informed predictions about where it sees its centres going in ten years’ time.

‘Extra-perience’ and text-based personal shoppers

Westfield’s ‘Destination 2028’ concept mall was designed and conceptualised with input from a range of experts including a futurologist, a fashion technology innovator, a retail specialist, and experimental physiologists.

“As we celebrate ten years of pioneering retail in London, we’re already looking forward to the next decade”, said Myf Ryan, chief marketing officer at Westfield UK and Europe. “We’ll continue to work closely with brands to deliver innovative retail spaces that create the ideal environment for them and our visitors – including developing technologies that converge digital and physical shopping to enhance that Extra-perience in state-of-the-art surroundings.”

The key lesson for other retailers from Destination 2028 is that stores, malls and other brick-and-mortar retail destinations are going to have to offer much more than a basic shopping experience to survive and thrive in future.

Westfield, for example, plans to augment its malls with leisure and wellbeing experiences, green spaces, waterways, and lots more space for temporary and flexible pop-ups and experience areas. Destination 2028 has ‘betterment zones’ with mindfulness workshops and even farms or small allotments, where shoppers can choose to buy direct from small producers.

All of this is driven by AI, biometric sensors, and mixed-reality technologies, with personalised AI walkways that will recommend the most relevant fast-track lanes and latest offers or experiences that are best suited to each individual customer as they enter the space.

Walmart tests out a text-based personal shopper

At its ‘Store No.8’ retail tech incubator, Walmart is in the process of testing out its own AI-powered personal shopper called ‘Jetblack’ – an extremely simple text-based shopping service, in which customers merely text a description or an image of the goods they want and their personal shopper responds to them conversationally, recommending products, reviews, and offers.

Jetblack chats to the shopper to help them create a shopping list of goods that will then be waiting for them at their local Walmart store, or be delivered same-day or next-day at the customer’s convenience. Traditional retailers are learning from e-commerce giants, such as Amazon, and looking at ways in which AI can help them retain their core market who want convenience, great value, and an unbeatable local store experience.

Both Jetblack and Destination 2028 are fascinating examples of where the future of the retail industry is heading; and both are heavily dependent on the latest innovations in AI and data analytics technologies. Plus, while many retailers are still struggling to adapt or die in the current climate, these future-gazing initiatives give the industry real hope for a truly exciting and profitable omnichannel future.