“Retailers Need to Embrace Agility and Cloud-Based Solutions to Compete in the Modern Landscape”
The retail industry is in the midst of a seismic shift. Driven by the relentless rise of e-commerce, changing consumer expectations, and a rapidly evolving technological landscape, retailers are being forced to re-evaluate their entire approach to business. One critical area that is ripe for reinvention is the retail tech stack. But what is a retail tech stack?
What is a retail tech stack?
A retail tech stack is the collection of technologies that a retailer uses to run its business. This includes everything from the point-of-sale system to the e-commerce platform, to the inventory management software, and the data analytics tools. Retailers need to upgrade their tech stack as the industry booms. Global POS software market to reach $15.81 billion by 2027 (McKinsey & Company) while Global inventory management software market is to reach $15.59 billion by 2025 (Deloitte).
In the past, retailers have often built their tech stacks piecemeal, adding on new technologies as needed without always considering how they all fit together. This has resulted in complex, siloed systems that are difficult to integrate, expensive to maintain, and slow to adapt to change.
Why is now the time for a rethink?
There are several factors that are driving the need for a retail tech-stack rethink. These include:
- The rise of e-commerce: “25.3% of global retail sales were online in 2023, projected to reach 37.5% by 2025 (Statistia).” E-commerce is growing at a breakneck pace, and retailers need to have a seamless omnichannel strategy that allows them to connect with customers across all touchpoints. This requires a tech stack that is designed for agility and integration.
- Changing consumer expectations: “74% of consumers use digital channels for retail research before making purchases (Statista).” Consumers today expect a highly personalized and convenient shopping experience. They want to be able to shop online or in-store, buy products using their preferred payment methods, and receive their purchases quickly and easily. A modern tech stack can help retailers meet these expectations.
- The evolving technological landscape: New technologies are emerging all the time that can help retailers improve their operations and deliver a better customer experience. These include artificial intelligence, machine learning, cloud computing, and the Internet of Things (IoT).
What are the benefits of a modern tech stack for retailers?
A modern retail tech stack can offer a number of benefits, including:
- Improved agility
- Reduced costs
- Enhanced efficiency
- Flexibility and Adaptability
- Scalability
- Improved customer experience
- Agile and Rapid Development
How to get started with a tech-stack rethink?
If you’re considering a retail tech-stack rethink, there are a few things you should keep in mind:
- Start with your business goals: What are you hoping to achieve with your new tech stack? Once you know your goals, you can start to identify the technologies that will help you reach them.
- Take an inventory of your existing systems: What technologies are you currently using? How well are they working? What are the pain points?
- Consider your budget: How much are you willing to invest in a new tech stack?
- Do your research: There are a wide variety of retail tech solutions available on the market. Take some time to research your options and find the solutions that are right for your business.
- Get buy-in from all stakeholders: A successful tech-stack implementation requires buy-in from all levels of the organization. Make sure everyone is on board with the change before you move forward.
Making the move to the cloud
“According to research by Gartner, Cloud-based POS is growing at a 23.4% CAGR.”
One of the key trends in retail technology is the move to the cloud. Cloud-based solutions offer a number of benefits, including scalability, flexibility, and affordability. For retailers who are considering a tech-stack rethink, the cloud is definitely worth exploring.
To wrap up
The retail industry is changing rapidly, and retailers need to be prepared to adapt. A modern tech stack is essential for any retailer that wants to compete in the modern landscape. By taking the time to rethink your tech stack, you can set your business up for success in the years to come.
Looking to adapt modern tech stack but don’t know where to start from? Holler at us now at https://uworx.co.uk/contact/