The insight: Despite softer consumer spending, the majority (68%) of retailers plan to spend more on tech initiatives over the next three years, per a report by Coresight Research and VMware.
- Nearly three in 10 (29%) say they expect to increase spending by 10% or more.
Zoom in: Much of that investment will go to improving the digital experience: 75% of retail executives intend to spend more on ecommerce, per Mercaux’s Pulse of Retail 2023 report.
- But with more shoppers returning to stores, brick-and-mortar investment is also ramping up. Half of retail executives plan to increase spending on in-store technologies to improve the omnichannel experience and offer more convenience to shoppers.
- Three-quarters of retailers are looking to reduce friction by transitioning away from traditional point-of-sale (POS) systems to eliminate lines, which could get rid of a major pain point for shoppers.
- For example, Kroger is testing a smart shopping cart—similar to Amazon’s Dash Cart—that uses cameras and sensors to track what customers put in it, eliminating the need for shoppers to wait on a checkout line. Other retailers, like Nordstrom, are looking to outfit associates with smartphones capable of accepting payments so shoppers can check out anywhere in the store.