How IoT is Redefining Your Shopping Spree

How IoT is Redefining Your Shopping Spree

The Gist

  • Tech transformation.  IoT is revolutionizing retail operations and consumer shopping habits.
  • Growth driver. Cost-effective IoT sensors and rising demand for seamless shopping are driving IoT adoption.
  • Innovation wave. Smart carts and connected vending machines are redefining shopping experiences.

As technology continues to reshape the retail landscape, the Internet of Things (IoT) is emerging as a game-changing factor, dramatically influencing how businesses operate and consumers shop. 

According to a Grand View Research report, the global Internet of Things (IoT) in market size in retail is expected to reach $297.4 billion by 2030 and grow at a 28.4 percent compound annual growth rate.

The research report cites connected technologies’ adoption and implementation as key to the growth, while IoT sensors and hardware have become less expensive, leading to a demand for a seamless shopping experience that’s expected to fuel IoT adoption in the retail market. 

Additionally smart payments continue to be more acceptable in the retail sector — a major factor that will drive the industry’s growth over the forecast period, according to the research firm.

Below are some of the more recent developments in the use of IoT in retail.

IoT Powers the Rise of Self-Checkout

Perhaps the most ubiquitous use of IoT in retail are the scanners that not only cashiers use, but are increasingly replacing live cashiers in favor of self-checkout lines at grocery stores and at many major retailers, including Walmart, Sam’s Club, Target and many others.

According to a report from Catalina, the number of self-checkout lanes has increased 10% in the US in the past five years. Grocery stores are leading the way, with 38% of all lanes now for self-checkout.

The research also found that though the grocery self-checkout lanes accounted for 38% of transactions, they resulted in only 24% of sales, which the research firm attributed to some bulk purchases being made online and some high-end items not being eligible for the self-checkout lanes.

Those in the 19-to-24 age group were the heaviest users of self-checkout, while those in the baby boom generation were the least likely.

Ultimately, the rise of self-checkout systems showcases the transformative power of IoT in reshaping the retail landscape and customer shopping habits.

Related Article: Why Ignoring IoT-Enabled Customer Experiences Could Cost You

Redefining Retail with Smart Carts

Going a step further than self-checkout lanes, some retailers have started using smart carts. 

Though still in its embryonic stages in the US, smart carts, which enable the user to scan and pay for items on the cart itself, is showing significant growth in Israel and other parts of the world. According to a ResearchAndMarkets report, the global smart shopping cart market is estimated to be $1.82 billion by the end of this year and will grow at a compound annual rate of 25.52%, reaching $5.67 billion by the end of 2028.

Veeve now offers smart carts that include attached tablets with connected screens that retailers can use to make personalized offers and promotions, as well as the ability to pay on the cart. By analyzing customers’ purchase history and shopping behavior in real-time, retailers can provide targeted offers and promotions that meet customers’ specific needs and interests. According to Veeve, this can help increase customer engagement with the retailer’s loyalty program and lead to more sales and repeat business.

According to Shopic, Wegman’s is piloting smart carts at two of its New York locations. Two thousand of the company’s smart carts are being deployed in Israel.

The adoption of smart carts, promising personalization and convenience, signals the next innovative step in retail, set to redefine shopping experiences globally.

Related Article: From Data Collection to Action: IoT Drives Customer-Centric Innovation

Source link