Innovation is undoubtedly an essential pillar of the contemporary economy, and within this context, technology has also advanced in retail as a way to meet customer expectations, increase operational efficiency, reduce costs, and boost retailers' revenues.
According to a study by FGV, as early as 2021, the entire Brazilian market advanced the equivalent of four years in its digitalization process.
In turn, a study by the Boston Consulting Group reveals that Latin American retail is expected to increase its technology investments by 20%.
It is important to emphasize that this transformation is not just a trend but a necessity, given the evolution in consumer behavior and their growing demands for efficiency and innovation.
Moreover, technology generates a series of positive impacts on retail, but to reap its benefits, companies in the sector need to strengthen their digital culture and embrace new market solutions.
In this article, I analyze in detail the advantages of technology for the Brazilian retail context and some trends that are transforming the sector.
Keep reading!
The importance of technology for efficiency in retail
It is no exaggeration to say that to ensure competitiveness in today's market, investments in innovation and technology must be part of the strategic planning of Brazilian retail.
On this point, a survey by SBVC (Sociedade Brasileira de Varejo e Consumo) with companies in the sector revealed that, for respondents, the main benefits of technology in retail are related to:
- Offering a multichannel service;
- Enhancing the consumer experience;
- Increasing revenue;
- Generating value for businesses.
This happens because, by implementing innovative solutions, companies optimize their operations and strengthen differentiators that translate into customer loyalty and potential financial gains.
In this sense, the BCG study cited in the introduction identified that retailers who invest the most in innovation are also the ones that grow the most.
Globally, those who invest the most in retail technology achieve an ROI of 21%. On the other hand, those who invest the least have an ROI of 9%.
Technology opens possibilities for a data-driven and automation culture, allowing employees to focus on strategic areas of the business and make assertive decisions aligned with market consumption expectations.
Investing in process standardization and control also enables companies to work with greater agility, quickly adapting to market changes.
Key technologies shaping retail
Considering this scenario, investing in innovation is an indispensable step for retail companies to stand out in a transforming market.
But which technologies should you invest in?
Below, I list some central trends that are revolutionizing retail operations and generating benefits, including:
- Exponential reduction of errors and higher levels of operational security for retail;
- Optimization of shopping and service journeys, generating satisfaction and enhancing customer experience quality;
- Greater convenience and payment control;
- Data-driven management supported by emerging technologies like artificial intelligence;
- Reduction of queues at POS (Point of Sale);
- Prevention of losses and fraud.
It’s worth exploring some solutions developed to protect profitability and drive the digital transformation of retail!
Monitoring and security systems
Especially in scenarios with high transaction volumes, security concerns are a constant reality for retailers.
In this context, it is worth noting that the market now offers intelligent systems that operate in areas ranging from loss and theft prevention with real-time data generation to integrated infrastructures for video monitoring and electronic security.
With this perspective of global and intelligent management of retail processes, it is possible to ensure safer environments for employees and consumers.
Thus, monitoring and security systems based on IoT are among the main drivers of technological advancement in retail.
Globally, investments in retail security systems exceeded $209 billion in 2023 and are expected to grow by 7.8% annually until 2030.
These indicators, from the consultancy Verified Market Reports, reinforce how the retail sector has recognized the importance of preventing losses and even increasing data security.
Self-checkouts, Remote POS Supervision, and Mobile Payment Solutions
Self-service solutions, such as self-checkouts, have gained popularity in retail.
They allow consumers to shop and pay without needing assistance, speeding up the shopping journey and reducing customer wait times.
This concern is strategic, as a survey by the Federation of Shopkeepers' Chambers of the State of São Paulo found that almost 80% of consumers consider abandoning a purchase due to long queues.
Additionally, 90% of retailers report that queues at checkout counters hinder sales, a fact that tends to directly impact store revenue.
This scenario can be even more aggravated during peak commercial periods, such as year-end holidays, Black Friday, and weekends. Dissatisfaction with wait times can affect the store's image and even customer loyalty.
According to international research, over 80% of consumers stop buying from a brand after a single negative experience.
The positive side of this scenario is that technology for remote checkout (POS) management has shown promising results and motivated investments by companies.
With the implementation of solutions like mobile payments and self-checkout systems, stores can improve the customer experience and reduce queues, also increasing team productivity.
It’s no coincidence that recent research indicated that the use of self-checkouts grew by 11% worldwide.
Artificial Intelligence and Data Analysis to improve decision-making
Artificial intelligence (AI) and data analysis are changing how retailers manage store operations.
These technologies allow companies, among other things, to analyze large volumes of data to understand consumer behavior, predict purchasing trends, and optimize inventories.
Additionally, we are talking about infrastructures capable of contributing to challenges such as reducing queues, improving financial management, and enhancing security and checkout processes.
For this reason, investments in AI and Big Data in the retail sector have been growing progressively, generating benefits in personalizing offers and customer experiences.
In this sense, recent research indicates that, by 2030, investments in data analysis solutions in retail are expected to grow by over 20% worldwide.
Meanwhile, artificial intelligence could generate over $11 billion by 2024, according to Grand View Research.
All this advancement in retail technology ultimately creates new growth opportunities for the market, which is expected to accelerate the pace of digital transformation in the coming years.
How Inwave solutions enhance technology use in retail
Now that you know the main trends in technology application in retail, how about learning how Inwave's solutions are contributing to this disruptive change in Brazil?
We are a pioneering company and a strategic partner of the national retail market, and through our innovations, you can strengthen your differentiators to succeed in such a competitive consumer environment.
Remote Supervisor: Darwin Applied at Checkout
As we’ve seen, automation is an important step in the digitalization process of retail.
Through the application of the Remote Supervisor feature of the Darwin Platform, you can understand how a centralized infrastructure for remote supervision speeds up service, reduces costs, and prevents losses.
With this, it is possible to monitor and validate cashier operations automatically, also controlling the risk of human errors and improving operational efficiency by eliminating the need to manually supervise each transaction.
With the adoption of Remote Fiscal, operations such as item cancellations or price checks, which take an average of 3 minutes to complete with an on-site supervisor, can be done in approximately 20 seconds!
The Remote Fiscal is part of the Darwin application for checkout, which is an important solution for optimizing the service flow in stores.
While remote supervision allows faster transaction processing, reducing queues and improving the customer experience, the audit functionality plays a fundamental role in the analysis and continuous improvement of processes.
In addition to checkout, the Darwin Platform can also be applied to other store environments, such as scales, access control, and other points of interest, with simple integrations that adapt to existing hardware and systems.
Video analysis and monitoring
No âmbito da segurança, as soluções de Vídeo Análise com câmeras e gravadores de CFTV são mas mais populares no varejo. Entretanto, nós da Inwave acreditamos que as soluções de imagens podem (e devem) ser utilizadas além da prevenção de perdas, gerando também dados para o estudo de padrões de consumo e comportamento dos clientes.
A ideia é aproveitar ao máximo os benefícios de soluções integradas, que gerem dados para impulsionar as operações das lojas, ajudando o varejo a melhorar a experiência de compra e aumentar a rentabilidade.
Conclusion: the future of technology in retail
As we’ve seen, technology already plays and will continue to play a fundamental role in the future of retail.
With the advancement of solutions in the field of the Internet of Things (IoT) and artificial intelligence, even more opportunities can be explored by retailers who invest in the digitalization of their operations.
It is important to emphasize that, more than a simple choice, investing in technology in retail is not an option but a strategic necessity to ensure long-term competitiveness.
Want to learn more about Darwin and Remote Supervisor?
