The use of “Internet of Things” solutions in the retail sector is growing in double digits due to the infinite solutions this technology offers to companies in the retail sector. The Internet of Things is a powerful tool that allows you to analyze customer behavior, create new business models and optimize productivity.
The two main reasons that have led to this digital transformation of physical stores are related to the development of smart technologies and the growing consumer demand for cheaper and faster purchases. Like Machine Learning, Artificial Intelligence, blockchain and Big Data systems, the Internet of Things is the key technology influencing the reshaping of commerce.
Global spending on IoT systems in retail is projected to reach $ 94.44 billion by 2025, showing a CAGR of 21.5%.
Many brands with an important network of physical stores are developing digital transformation strategies to keep up with the competition. In addition to introducing retail software solutions into all their consumer processes, they are introducing sophisticated IoT solutions within their stores to analyze shopper behavior. Customer personal data, as well as data on customer behavior in stores, are priceless and the use of different IoT sensors allows you to collect all this information. In this way, marketers can identify the sections of the store with the highest and lowest traffic and, based on this data, they can create more efficient merchandising strategies and optimize the physical layout of the store.
Technology can go even further, as demonstrated by Amazon's new take-and-go concept. In the Amazon Go supermarket chain, there are no lines or checkouts. People take the goods and the payment is automatically processed with the help of smart sensors, cameras and weighing devices that integrate with smartphones.