Report: Retailers aren't evolving fast enough

 

Jan. 21, 2016

Retailers are under enormous pressure to adjust both internal and customer-facing business strategies in order to keep pace with rapidly evolving consumer demands, and most are not evolving fast enough, according to a survey and report, "How Mobile is Transforming Retail," commissioned by SAP's Economist Intelligence Unit.

The report, based on a consumer survey across 39 countries, identified three key mobile imperatives to retail growth:

1. Address generational differences in shopper behavior
   The report shows that 69 percent of consumers polled use smartphones and desktops for shopping in equal measure — but 81 percent of millennial respondents said they mainly use smartphones for the purpose
2. Prioritize the user experience to attract and retain customers.
   Of those who shop infrequently from mobile devices, 63 percent blame small screen size and 38 percent cite awkward navigation as the obstacle. Among those who do not yet use mobile devices to request product samples, 51 percent believe they will do so in the future
3. Close the gap in mobile shopping functionality.
   In a few years, a generation whose shopping habits have matured alongside that of mobile technology will become the mainstay of retail spending in developed economies.

The report also found:

• About 60 percent of those polled used their mobile devices to comparison shop.
• Of those polled, 76 percent said in-store staff using mobile devices to ring up purchases appeals.

The increasing use of mobile shopping functionality threatens retailers who fail to meet this group's expectations for more sophisticated mobile shopping services, especially as the group's purchasing power grows, said Carolyn Whelan, the report's editor.

"Mobile shopping continues to grow in its reach and breadth. But as demand for more sophisticated services picks up, particularly among Millennials, shoppers will be less forgiving of services that fall short. As retailers shift or expand their mobile service offerings, a cohesive strategy considering consumer capabilities and needs across multiple touch points, from the physical store to desktops and smartphones, is paramount."