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The way people shop has changed significantly over the past decade. E-commerce is often blamed for most of the impact on retail. Although there is less physical presence, especially in some industries, this does not mean that people are shopping less. Rather, we can relate this to a shift in consumer shopping habits and methods. Consumers can buy their goods not only in stores, but also online. Online sales have increased significantly in recent years, and the ongoing pandemic has increased the potential for development. As e-commerce continues to expand rapidly, all retailers will be forced to join and create websites for their businesses to remain competitive in the retail environment. For many traditional shop owners, things are getting tougher as digitization continues. The rise of e-commerce is leading to a decline in customer loyalty and, as a result, lost sales in these physical stores. For example, in an effort to boost online sales amid the disruption caused by the Covid-19 pandemic, Zara closed as many as 1,200 stores around the world. Also, major retailer H&M has announced it will close several of its stores in the UK. A spokesperson for H&M UK & Ireland said: "During the last few years, we have seen a rapid change in customer behaviour that we cannot ignore. We continuously need to evaluate and develop our business to meet our customers’ needs and offer the best possible shopping experience, whether it’s online or in our physical stores. This means that we sometimes need to close stores." Due to the continued rapid expansion of e-commerce, some retailers are now establishing an online presence to reach potential customers. Many of them built ecommerce websites and mobile applications and integrated AI models and chatbots into their solutions. The application of AI development for better management is nothing new. This trend will not be reversed by the upcoming changes in retail. Rather, it will be extended by the retail industry of the near future. Most e-commerce companies are aware of the benefits of incorporating AI-powered data into their management approach. The quantity of goods displayed on the sales floor is optimized by store personnel using AI technologies integrated with offline processes. Should the number of identical goods on the shelf be changed to improve product visibility? What combination of products is most popular with customers? The answers to these questions can be provided by AI-driven data on offline store management.
Source: https://forbytes.com/blog/digital-transformation-reshaping-future-retail/
https://www.manchestereveningnews.co.uk/news/fashion-news/hm-close-stores-across-uk-26106024
