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It is no secret that technology is changing retail as we know it. But what advancements stand to have the biggest impact as we move into 2018? Take a look at the following trends.

Augmented Reality

With the rise of online shopping, the retail experience is becoming less and less about picking up and trying out a physical product in a brick-and-mortar store. Instead, retailers are becoming more adept at leveraging the power of augmented reality to entice customers into buying products. For example, some furniture retailers such as Ikea now allow you to upload a picture of your living space to see how a specific item of furniture looks in it. Some retailers are testing out technology that allows customers to try on clothing via a virtual representation. Increasingly, retail success will depend on retailers' ability to provide immersive shopping experiences online. Expect retailers to continue to make use of augmented reality throughout 2018.

Assortment Planning Driven by Artificial Intelligence

There are no longer physical limitations on the number of products that retailers can carry in their stores thanks to the rise of drop shipping. That means that while retailers can carry all sorts of different product types, they need to figure out which ones are most consistent with their overall brand identity. To figure this out, retailers are increasingly making use of artificial intelligence-driven assortment planning, which helps them select the products that are most likely to resonate with their customers based on the products characteristics and the demographic information of their target customers.

The Distinction Between Brands and Retailers Will Blur

The distinction between a brand and a retailer is becoming less and less important. Brands are increasingly partnering with other brands to sell their products and labels, and retailers notably Amazon are building up billion-dollar private label businesses. That means the distinction between the two is becoming less relevant.

The bottom line? The world of retail is evolving quickly, and 2018 is anticipated to bring major changes. If retailers want to stay relevant, they have to keep up.