The future of retail: Tradition or innovation?

Overall decline in retail sales

In 2020, the world faced an unexpected drop in retail sales as reflected in eMarketer's report of 2.8%. This decline came as a shock to many, as experts had predicted growth of 4.4% before the pandemic. However, as early as 2021, figures are predicted to recover to the levels recorded in 2019, which would be a positive sign for retailers.

Growth of online commerce

At the same time, online retail is showing impressive progress: its volume increased by 25.7% in 2020, and a further growth of 16.8% is expected in 2021. Leading positions in this area are held by countries such as:

• India
• Brazil
• Russia
• Argentina

Where the growth of e-commerce volumes can reach at least 26% annually. Forecasts for 2025 predict that the share of online sales could reach about a quarter of all consumer purchases.

Online trading in various product categories

An important aspect is market analysis and understanding what share online purchases occupy in various product categories, including:

• Consumer goods
• Cosmetics and health
• Leisure and entertainment
• Electronics

The question often arises: do traditional stores need to close their businesses? There is a clear answer to this:noThey will still remain relevant. Moreover, there is a growing interest in a multichannel approach to shopping, where customers can combine online and offline experiences.

Multichannel shopping

For example, this approach includes the option to order a product online and pick it up in the store, as well as the option for home delivery. Customers also have the opportunity to choose and try on clothes in the store, and then complete the purchase online, which adds extra convenience. We should not forget about the informational support for customers and the option for online payment.

Investing in retail trade

It is important to note that before investing in retail facilities, it is necessary to realize how much they will be in demand. Tenants are also tasked with a detailed analysis of their projects to ensure that they meet current market requirements.

Innovations and startups

When it comes to innovations in retail, there are a large number of startups offering digital solutions. However, not all ideas are destined for success, and many of them may turn out to be unprofitable. The key point is to focus on solutions that are already being implemented and are in demand.

Safety and new trends

The report from Colliers presents the results of a survey regarding client preferences that will help enhance safety during the coronavirus pandemic. This information provides a clear understanding of trends and opportunities that may become popular in the future, shaping new standards for the retail sector.

Modern technologies in retail trade

In today's retail era, the use of various technologies has become a fundamental element for enhancing the quality of the shopping experience and optimizing store operations. Developing new methods for providing information about products and services is a crucial step in this direction.

Access to product information

The first thing to pay attention to is the ability to access detailed information about products. Research shows that64.6%consumers prefer to use their mobile devices to scan barcodes, allowing them to get the information they need quickly. This feature is especially useful for those who want to know the features and prices of products before making a purchase.

Navigation apps

The next significant innovation was navigation apps that help customers find the products they need in stores. About61.4%The respondents are ready to use such technologies, which simplify the shopping process and reduce the time spent at retail locations.

Contactless payment

The contactless payment system plays a key role in the modernization of retail methods. According to surveys, about50.3%Customers are choosing to pay for their purchases using mobile devices or cards without touching the terminal. This is not only convenient but also reduces the risk of transmitting infections among clients.

Automated kiosks

Expands the possibilities of contactless commerce and payment without the involvement of store employees. Approximately48.5%Consumers are ready to take advantage of automated checkouts and mobile applications, which makes the shopping process faster and more comfortable for them.

Pre-registration

It is also worth highlighting the growing interest in pre-booking an appointment to visit a store or receive consultations. This service is already of interest to30%The respondents, which allows them to plan their visits in advance and avoid long waits in line.

Virtual fitting of clothes

Among modern innovations, we can also include virtual fitting technologies using augmented reality.19.8%Customers would prefer shopping using such high technologies that make the purchasing process more engaging and interactive.

What should retailers take into account?

What exactly should retailers consider when trying to improve their sales performance? Investments in technological innovations, such as"smart carts"They confirm their effectiveness. Such carts act as personal assistants for shoppers:

• They offer to upload shopping lists using the touchscreen.
• They are creating optimal routes through the store.
• The built-in scales and cameras record the added products;
• Simplify the payment process - all you need to do is attach your loyalty card and bank card.

Smart carts help significantly reduce the time spent in stores, minimize contact, and open up new opportunities for conducting advertising campaigns and personalized offers. Among the first companies to implement this approach are Kroger and Microsoft.

Smart shelves

Moreover, smart shelves are becoming increasingly common in modern stores. Electronic price tags provide more information about products and simplify the tasks of employees responsible for price accuracy. Thanks to this innovation, retailers can quickly change product prices, run promotions, and sales without delays.

Stock and quality sensors

A variety of stock sensors are also becoming an important part of automated solutions. They provide the ability to monitor the availability of goods on the shelves using various technologies such as infrared sensors and computer vision. This makes it possible to track which products customers choose, as in Amazon Go stores.

It's important to also remember about quality sensors that can determine the freshness of products and are usually attached to product packaging. Interactive labels on goods open up additional opportunities for interaction with customers, making the shopping process much more engaging.

Conclusion

In conclusion, it can be stated that technology continues to transform the consumer experience in retail. Retailers should closely monitor the implementation of new tools and technologies to meet the current demands and expectations of their customers.

Simplifying the purchasing process

Modern technological advancements significantly ease the task of finding the right product for customers by providing them with more detailed information about various products. Interactive screens and touch panels are becoming key components that enable effective interaction between shoppers and stores. These devices allow customers not only to compare product specifications but also to make purchases without the need to interact with salespeople.

For example, the screen, which is located at the entrance to the shopping area, helps visitors to quickly navigate in the store, and the screen in the fitting room allows you to order the desired product, choose the right size and color without waiting for help from the staff.

Advantages for customers and stores

The use of such technologies provides customers with a high level of security and comfort, while for retailers, they serve as a means to address marketing challenges and enhance employee efficiency.

Innovations in mobile applications

Mobile applications have also undergone significant changes.

• They now offer personalized discounts and recommendations based on previous purchases.
• Many applications have implemented voice control features.
• The ability to search for products by photos.

Users have the ability to place orders in advance, view available sizes and colors, and navigate the store using their mobile devices. It is especially important that in the non-food sector, customers can pre-order the items they need at a specific store and, upon arrival, call consultants directly to the sales area or fitting room.

Analysis of customer behavior

Stores also use mobile devices to collect and analyze information about consumer behavior, which allows them to develop more effective marketing strategies, adjust their product range, and improve the layout of retail spaces.

Innovative technologies, such ascustomer recognition systemsThey are becoming indispensable in the operations of modern stores. Here, the harmony between understanding customer needs and analyzing visitor traffic is crucial. Although these technologies may cause dissatisfaction among some consumers, for retailers, they represent a valuable tool that is hard to ignore.

Functions of new technologies

Such functions are most often implemented through mobile applications or Bluetooth and NFC technologies integrated into smartphones. They may include:

• Smart cameras based on computer vision, installed on shelves or ceilings in stores.
• Sending notifications to people passing by a specific brand.
• Purchase suggestions based on user preferences.

Understanding the emotional state of customers is becoming an important aspect for retailers. Computer vision systems can detect if a customer is looking at the same product for a long time and offer them assistance in doing so. Thus, technology not only simplifies the shopping process, but also makes it more human, emphasizing the needs of each individual customer.

Difficulties in choosing a product

A potential buyer may face difficulties when choosing a product to purchase. In such cases, the system can provide assistance from a consultant. More advanced algorithms are capable of recognizing customers' emotional reactions during the decision-making process. If, at the end of their visit to the store, the customer is dissatisfied, the consultant can approach them to find out the reason for their discontent.

Examples of companies

For example, Uniqlo has implemented artificial intelligence that monitors consumers' neural impulses while viewing advertising materials and offers those products to which the customer has a positive reaction.

Analysis of customer behavior

The analysis of customer behavior in stores opens up new horizons for studying various aspects. Retailers like Amazon Go use this approach to identify the products chosen by specific customers. Moreover, such technologies provide analysis of people's movement within the store, which in turn allows for identifying:

• “Narrow spots” in spatial planning;
• Errors in product placement;
• Areas that don't attract the attention of shoppers.

Virtual fitting and augmented reality

The virtual fitting technology, utilizing augmented reality capabilities, allows customers to try on clothes without leaving their homes or avoiding long lines in stores. This technology can be applied not only to clothing but also to shoes, accessories, and cosmetic products. To ensure the correct size selection, the following is required:

• Face scanning;
• Measuring the client's body parameters;
• Measurement of the item itself that will be tried on.

This function can be implemented through virtual mirrors, special kiosks, or mobile applications. Brands like H&M, Zara, Ralph Lauren, Lacoste, and Burberry have already integrated this technology into their business.

Augmented reality in everyday life

Augmented reality is also widely used for "trying on" not only clothes but also household items, such as orthopedic mattresses and pillows. For this, it is also necessary to scan the buyer's figure. In addition, services that offer "trying on" renovations or new furniture are actively developing. The client needs:

• Take a photo of your interior.
• Create a 3D model of the room based on this photo;
• Virtually place new furniture or other decor elements.

Digital queues during the pandemic

In the context of a global pandemic, when many are trying to minimize social contacts, the popularity of digital queue systems has significantly increased. Users can register to enter a store while on their way there. This way, they receive a number in the electronic queue and can wait for their turn outside or in their car. This approach makes waiting more comfortable and helps maintain social distance.

Employment issues and automation

There is a perception that mobile robots could threaten people's jobs by creating additional employment challenges. However, the development of this technology can also lead to a new approach to work organization and improve the efficiency of many industries. New technologies and automation require adaptation and retraining of employees, which can be a chance to upgrade skills and learn new professions.

Introduction to Supermarket Automation

In modern supermarkets, there is a trend of using robots that replace certain job positions by performing various functions. One of the tasks that has proven to be the most accessible for automation is merchandising. These automated devices are capable of taking pictures of products on the shelves, after which specialized intelligent systems analyze the availability of products and the correctness of their placement.

Example of application in Walmart

A prime example of the use of such robots is the Walmart chain, where automation tools check shelf occupancy and clean the store.

Functions of order control

Robots can also perform tasks related to maintaining order in stores. These mechanical assistants are capable of detecting messes, such as spilled juice, and can assist customers by providing information in various languages. In Walmart, these devices move around the shopping areas, while specialized machines operate in warehouses and handle order fulfillment.

High automation at Amazon

As an example of highly automated processes, one can mention Amazon warehouses, where human labor is minimized: people do not search for products but only scan the results produced by high-tech machines.

Use of robots in Zara stores

In retail locations like Zara, robots are actively being implemented to manage order pickup areas. When customers arrive at the store, they can enter a code to retrieve their order, which activates a robot that heads to the warehouse.

This machine finds the necessary product and delivers it through a special window for pickup. Moreover, robots have started to perform courier functions: they are capable of independently delivering online orders right to customers' doors.

New payment methods

It is worth noting that new payment methods are one of the most exciting areas for the application of modern technologies. The redesign of checkout areas and payment methods is becoming a relevant direction, and the number of available options is growing every day. One of the popular innovations has been self-service kiosks.

• More and more shoppers are opting to use mobile apps that allow them to self-scan and pay for items using their phones.

Scan It kiosk at Giant Food

A good example is the Scan It self-service kiosk at the Giant Food supermarket in Wheaton, Maryland (USA).

Introduction to Online Trading

In modern times, when online shopping is rapidly progressing, it is expected that in the coming years it will account for about a third of all retail sales. This situation raises the question of the need to increase the space designated for order fulfillment. Such areas could take up to 30% of the total sales floor. There is also a possibility that to optimize service, this area may need to be divided into several independent sections. Customers have different opinions on this matter, and here are some suggestions they propose to improve the service.

Suggestions from customers for improving the service

Among the ideas proposed by users of online services, several points can be highlighted that contribute to increasing convenience in stores:

• Creating and highlighting return pointsmistakenly placed online orders, which is supported by 72.9% of respondents;
• Implementation of automatic stations for product returns,70.4% of the respondents mentioned;
• Arrangement of a special entrance for order pickupson cars, which 68.2% of survey participants wish to see;
• Conveniently located customer service areasIn the store, which attracted the attention of 65.3% of shoppers.
• Creating a separate entrance or area for receiving online orders60.3% of respondents supported the stores.

Automation of inventory management

When it comes to inventory management, this area is becoming particularly attractive for automation. Examples of automated warehouses come to mind, such as those used by Amazon, where many processes are carried out without direct human intervention. At the core of automation arebarcodes, present on most products. Many items are also equipped withRFID tags...which significantly simplifies the navigation process within warehouse facilities.

Warehouse complexes are usually equipped with cameras and robots, which facilitate inventory management, order picking, and delivery. The application ofartificial intelligenceAnd the analysis of the collected data contributes to accurate sales forecasting and planning for future purchases.

The concept of dark stores

Recently, a concept has emerged.“dark stores”These stores operate in networks where product delivery constitutes a significant portion of total sales. They essentially function without a retail space and resemble warehouses or distribution centers more than traditional shops. Typically, they are located in residential areas to facilitate quick order fulfillment and customer service. Dark stores can replace traditional stores within walking distance, making shopping more convenient.

In Russia, in Moscow, a dark store called "Perekrestok" has been launched, which has become part of this innovative concept.

Concept stores as an alternative

In contrast to dark stores,concept storesThey are located on busy streets and serve as showcases for brands. Although the share of actual purchases made through them may be minimal, such stores provide customers with the opportunity to explore the range, try on clothes, and receive advice from staff. At the same time, the variety of products and services can inspire customers to complete their purchase online later.

An example of such an approach is the brand's store.ZaraIn Brussels, special lounge areas with cafes are organized, hosting exhibitions and meetings with famous personalities, creating a unique atmosphere for shoppers.

Technological innovations in retail

Modern technologies play a key role in attracting customers in the retail sector. They include innovations such as digital display windows and solutions that create augmented reality for a more personalized selection of products in stores.

Every new day brings fresh concepts to the world of commerce, but implementing many of them in real conditions can be quite a challenging task. The success of integrating modern technologies often depends on the specifics of a particular business, as well as factors such as size, category, and location of the retail space.

It is important for both owners and tenants to have a clear understanding of the technologies that can be used in their retail spaces in order to directly assess both the costs and the potential for profit from their projects.

Development of the e-commerce market

The e-commerce sector will undoubtedly continue to grow and expand. It is important to emphasize that the growth of online shopping is not a threat to physical stores; rather, it acts as a factor of transformation and complementarity. This, in turn, strengthens the position of the retail real estate sector within investments.

Interesting offers in the market

Let's take a look at some interesting properties on the market:

• Commercial space in Antalya, Turkey— The price is €1,650,000, and the total area is 1,200 m². This property is located in a strategically convenient area in Antalya and has high potential. The presence of reliable and stable tenants creates positive conditions for generating income from investments. The convenient layout of the two-level building makes it attractive to buyers, ensuring a comfortable shopping experience.
• A retail location in Barcelona, Spain— the price is €3,650,000, with an area of 232 m² and an expected income of 4.11% per year. The purchase includes the possibility of obtaining a residence permit, online viewings, and financing at an interest rate of 2-3%. The store is located in a prestigious part of the city, close to famous landmarks such as Casa Mila, designed by the talented architect Antoni Gaudí, and popular shopping streets like Paseig de Gracia.
• Another store in Antalya, Turkey— the price is €585,000, with a total area of 1,391 m². Online viewings and the option for a remote transaction with payment in rubles are also available.
• Object in Larnaca, Cyprus— the price is €215,000, and the area is 114 m².
• New store in Antalya, Turkey— Price 629,000 €, area 200 m². In this case, online viewings and remote purchasing are available, and payment can be made in rubles.
• The trading square in Barcelona, Spain— The price is €750,000, with an area of 288 m² and an expected income of 3.71% per year. This property can be purchased with residency permit arrangements and a financing program. This business already has tenants — Condis Supermercats, S.A. Customers are always waiting for this centrally located store. The total area is 288 m², and the asking price is €750,000. The expected annual rental income can reach €30,000, taking all expenses into account.
• Store in Esenyurt, Turkey— the price is €171,000, and the area is 108 m². Online viewings and remote transactions are again available, with payment in rubles.
• Object in Blanes, Spain— price 2,800,000 €, area 3,233 m².

This is just a small part of the wide range of offerings in the commercial real estate market, which continues to develop and remain interesting for investors. Innovations in technology and the growth of the e-commerce sector are opening up new horizons ahead.

Investment in real estate as a way to obtain residency.

Investing in real estate is an amazing way not only to invest funds but also to obtain residency through the purchase of commercial properties. The real estate market offers interesting opportunities, including ready-made businesses like supermarkets that already have tenants and can provide a stable income.

Supermarket in Blanes

One of the most attractive properties is a supermarket in Blanes, Spain, with an area of 3,233 square meters. The price for this business is set at2,800,000 €and the financial indicators look promising: the annual income is208,000 €and the total expenses are equal to9,599.04 €This data instills confidence that investors will receive a stable income suitable for obtaining residency.

Supermarket in Sabadell

I am also interested in the supermarket in Sabadell, Spain, with an area of...760 m², which is already being rented by the companyCondis, S.A.This space is located on one of the central streets of the city, and its price is750,000 €According to preliminary estimates, a significant annual income after taxes is expected, making this investment attractive.

Store in Ankara

For those who are considering investing in Turkey, there is a store with a floor area of500 square metersin Ankara, which can be purchased for645,000 €Thanks to the excellent location, which ensures a high flow of customers. This also creates great conditions for stable income.

Store in Dubai

Equally interesting may be a store in Dubai, United Arab Emirates, with an area of116 m²and the price700,000 €The expected profitability of such assets usually ranges within4-6%...which makes them an excellent option for long-term investments.

Commercial offers in Barcelona

There are various offers for investors in Barcelona. For example, a commercial property with an area of260 m²affordable850,000 €. The site is located in a high-density neighborhood with a developed infrastructure that includes educational institutions and stores.

Object in Granollers

It is also worth paying attention to the property in Granollers, which is located just a20 kmfrom the center of Barcelona. This commercial space is renowned for its size160 m²and a prime location in the heart of the city, which guarantees rental income from a well-known shoe brand.

Eixample

In the prestigious Eixample district, one of the most famous areas of Barcelona, there are also interesting offers available. Here, spaces start from100 to 195 m², the cost of which ranges from350,000 €to525,000 €These premises attract the attention of investors due to their unique architectural design and high foot traffic.

Results

Thus, all the listed properties offer excellent conditions for machine investment aimed at generating stable income and the possibility of obtaining a residence permit. Such offers may be of interest to both individual investors and large investment companies looking to diversify their assets through profitable commercial real estate.

Real estate environment in Barcelona

The real estate environment in Barcelona impresses with its diversity and high living standards. The residential areas in the city center stand out for their respectability and appeal.

Transport infrastructure

One of the main transport arteries of Barcelona is Avenida Roma, which is popular among both locals and tourists. This area is home to a hospital.Hospital Clinic...which significantly eases life for both residents and visitors of the capital of Catalonia.

Infrastructure development

Infrastructure development of this neighborhood is at a high level. There are:

• various supermarkets;
• banks;
• pharmacies;
• other necessary establishments.

For example, in the Eixample neighborhood, a store with an area of79 m²in terms of cost270,000 €which provides an income of5.88%per year. Additionally, this object can be viewed online, and the loan terms vary from2 to 3%It is particularly noteworthy that there is already a tenant for this business, which makes it especially attractive to potential investors.

Commercial real estate in the center

Another store located in the University Square is situated within a bustling business district, where numerous bars, restaurants, and boutiques are concentrated. Here you can find:

• store area573 m²for950,000 €;
• the income amounts to5.68%per year;
• submission is possible forResidence permitupon purchase.

The object is also available for online viewing, and the loan terms are2-3%The presence of a tenant makes this offer even more attractive for investment.

Residential complex in Eixample

Eixample is famous for its unique residential complex, which includes both high-rise buildings and individual cottages. This area is characterized by a high population density and well-developed infrastructure, including:

• supermarkets;
• beauty salons
• banks.

Another store with an area is available for sale.160 m²at the price460,000 €that can provide an income of4.96%annual. The opportunity to receiveResidence permitwhen purchasing, as well as access to the online viewing and credit terms from2 to 3%makes this property quite attractive to buyers.

Prestigious neighborhoods of the city

In a prestigious part of the city, near the rental properties, there is a location in the Monumental Arena area and on Gran Via de les Corts. This area includes:

• jewelry stores;
• other commercial institutions.

One of the stores with a total area of98 m²offered for656,000 €providing a yield of5.21%per year. This object also includes the possibility of obtainingResidence permitWhen purchasing, what makes it particularly desirable for potential buyers.

Infrastructure and amenities

The residential area located in this part of the city is characterized by a high density of development and good infrastructure. Here, you can find large supermarket chains, cozy restaurants, and banks. The presence of medical facilities highlights the convenient living conditions in this area.

Great opportunities for business

In addition, there are commercial properties in the central business district of Eixample that can be purchased for750,000 €with an area270 m²and income4%per year. This property is located on the prestigious Gran Via de Les Corts avenue, close to boutiques and restaurants.

There are eight hotels in the vicinity.200 metersincluding well-known chain hotels like Axel. Developed infrastructure, includingJoan Miró Parkandthe area of SpainThis makes the place not only convenient for doing business but also comfortable for living.

Conclusion

The conclusion of this article summarizes the ongoing changes in retail, which have become most noticeable against the backdrop of current market trends. We see how the pandemic forced businesses to adapt to new realities, and now the value of traditional formats that do not include e-commerce and omnichannel strategies is diminishing. Despite the overall decline in sales in 2020, the growth of online shopping indicates significant shifts in consumer preferences. This undoubtedly presents new challenges and opportunities for store owners.

Multichannel shopping

Multichannel shopping, as modern research shows, is becoming an integral part of the consumer experience. It offers customers the flexibility and convenience that provide confidence and security when making purchases. However, this does not mean that physical stores have lost their relevance. On the contrary, they continue to play an important role — this symbiosis of offline and online will be in demand.

Innovative technologies in retail

In order to stay afloat, retailers need to be aware of new technologies and improvements that can enhance their competitiveness. Investing in innovative solutions, such as:

• Smart carts:increase the comfort and safety of shopping.
• Electronic labels:allow for quick price changes and promotions.
• Stock sensors:They help monitor the availability of products on the shelves.

These innovations will not only make shopping more comfortable but will also ensure a high level of customer service.

The future of retail.

In conclusion, I would like to emphasize that the future of retail will be determined by those who can effectively integrate all sales channels—both online and offline. Only those who recognize this and timely implement new technologies will be able to achieve success in the dynamic environment of the modern market.

It's important not just to follow trends, but to stay one step ahead in order to meet the constantly changing needs of the customer.