Where does digital go next?

Retail has undergone a remarkable transformation over the past decade. Driven by customers’ demands for seamless, personalized and efficient shopping experiences, new technologies have emerged to transform siloed online and physical stores into a dynamic, omnichannel ecosystem.

With digital adoptions continuing to revolutionize retail, we analysed the ways technology and trusted partnerships can facilitate a seamless transition to a more profitable future.

Today’s innovations shaping tomorrow
Radio-frequency identification (RFID) tags are revolutionizing how retailers manage inventory and improve customer experiences. These small, hidden tags eliminate manual scanning, reduce checkout lines and provide real-time inventory data, allowing businesses to analyze shopping behavior and optimize store layouts, ensuring the right products are displayed.

Beyond convenience, RFID also enhances security. Tags deactivate upon payment, instantly alerting security if an unpaid item exits the store. As costs decline, RFID’s adoption is set to soar, with the global market projected to grow to $47.63 billion by 2030.

Alongside RFID, AI-powered computer vision can equally reduce customer inconveniences in retail. Advanced recognition capabilities can speed up the checkout process and coupled with RFID, the technology can track stock in real time, minimize shrinkage and allow staff to focus on enhancing customer service.

Finally, biometrics payments systems like FacePay and PalmPay are redefining checkout by replacing cash and cards with biometric data. These technologies provide added security against fraud, which cost retailers $429 billion in 2023, and are already being used in Whole Foods stores and Mastercard trials, offering a reliable, secure alternative that meets customers’ expectations for speed and convenience.

Beyond 2030: Retail’s immersive and automated future
Whereas news reports there are labor shortages affecting nearly 13% of UK businesses and in the US, there is a surplus of 5.5M job openings that cannot be fulfilled with workers, we can look to automation to offer a solution. Robots, smart shelves and AI-powered displays can ease the burden on staff, freeing associates to focus on customer engagement. The technology could be so transformative that Gartner predicts by 2028 there will be more smart robots in retail than frontline workers.

Immersive displays, AI-driven recommendations and 3D-printed custom products will equally elevate the shopping experience, while flexible store formats will cater to customers’ specific needs, driving loyalty and satisfaction.

Circular business models like upcycling and trade-ins, combined with transparency tools like the EU’s Digital Product Passport, will additionally help reduce waste and appeal to eco-conscious shoppers. In-store AI could also provide health tips or basic medical checks, integrating well-being into retail experiences.

Navigating change with trusted partners
While the potential of digital innovation is immense, implementing these technologies requires expertise and careful planning. The future is arriving fast and fragile integrations can disrupt operations and harm customer loyalty, making trusted partnerships essential.

At Flooid, we have been helping global retailers embrace change for nearly four decades. Our solutions allow retailers to adopt cutting-edge technologies such as RFID, computer vision and biometric payment pilots quickly so they test the market and scale rapidly to drive return on these exciting new innovations. With our cloud-based platform, data-driven insights and composable infrastructure, we enable businesses to test and scale new innovations seamlessly.

To find out how to future-proof your retail business and the ways that Flooid can help you harness its potential, download our Digital Futures white paper.