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Despite adoption of Artificial Intelligence (AI) and mobile technologies, 78% of Canadians express security concerns with personal data, 28% find the in-store shopping experience more confusing than ever before and 47% have experienced issues with devices such as self-serve checkout
Mississauga, CANADA – January 30, 2024 – The retail industry is facing a critical juncture where Canadian consumers are experiencing a disconnect between their shopping expectations and the in-store reality. As the Canadian retail markets continue to evolve, the industry grapples with challenges rolling out in-store technology and integrating advanced AI technology, while continuing to optimize the supply chain and address ever-growing security concerns.
According to SOTI’s new global retail report, Techspectations: Consumer Demand for Digital Transformation in Retail, which surveyed 1,000 Canadian shoppers, retailers are confronted with the heightened expectations of consumers anticipating seamless in-store interactions, personalized recommendations and instant access to inventory online and in-store to ensure their continued loyalty.
Emerging Technologies and the Consumer Experience
While consumers crave technology to improve their in-store shopping experience, those offered by retailers do not always meet expectations. The study found that while 92% of Canadian consumers have used in-store technology, many believe these devices make the shopping experience worse. Canadians cite challenges in-store such as a lack of staff to assist with issues relating to self-serve machines (73% of users), while as many as 31% stated that, despite visiting a store to buy goods, retail staff members had to order the item online using the store device regardless.
The report suggests that consumer expectations have risen, largely due to the sophisticated personalization and seamless processes available online, which in-store technologies currently fail to match. To address this, retailers must invest in AI-driven solutions and device management to provide consistent, personalized and convenient shopping experiences in both physical stores and online.
Retail Supply Chains Must Meet Real-Time Demands
Supply chain optimization in the retail industry is critical, as Canadian shoppers now demand real-time information, efficient product availability and rapid delivery in-store and online. The report reveals that:
· 46% of Canadian consumers expect to be able to pick up an item ordered online from a physical store on the same day.
· 41% will look elsewhere if delivery or pick-up of an item is more than two days.
· 77% of consumers expect to always know the status of their orders, highlighting the need for efficient supply chain visibility.
“Retailers have been focusing on how to maximize AI’s impact for the online experience without fully replicating these benefits in their physical stores where it can address many of the pain points Canadian consumers are facing today,” said Shash Anand, SVP of Product Strategy at SOTI. “For those with an omnichannel approach, strategic investment in in-store infrastructure will enable AI and automation to optimize supply chain processes, identify technical issues, enhance inventory visibility and aide in forecasting, while reducing waste. As a result, they can ensure a harmonized and efficient retail experience that will replicate the seamlessness consumers expect from online shopping.”
Consumer Trust and Data Vulnerability
Security is a significant concern for Canadian consumers. More than three-quarters (78%) expressed concerns about entering personal details online or through in-store devices, indicating a pervasive lack of trust in the data collection and payment technologies used by retail organizations. Security concerns extend to fraud, with 41% of consumers worrying about becoming a victim of financial fraud and another 42% expressing concerns about identity fraud.
Additionally, the report emphasizes on the importance of in-store device security. Canadian consumers have concerns using in-store devices due to mistrust of retailers, including the potential exposure of personal details (40%) and the risk of the next user seeing personal information (25%). Despite this, 43% of consumers view in-store devices as tools to enhance shopping convenience and speed. This highlights the need for retailers to balance convenience and security while building trust among those making purchases in the retail space.
“When reflecting on the overall retail experience, Canadian respondents continue to expect change and see value in technology to enhance their interactions with retailers, but gaps in expectations and reality continue to jeopardize brand loyalty and sales,” said Anand. “Looking to the future, retailers must focus on the technologies and infrastructure around them and ask how these applications, devices and technology solutions are being managed, monitored and maintained. Intelligence solutions, such as SOTI XSight Live View, can not only help you visualize your retail operations and entire supply chain – in real-time – but also allow you to uncover operational issues immediately by merging both business and device data, creating a holistic view of your operations both in-store and online.”
SOTI’s latest report, Techspectations: Consumer Demand for Digital Transformation in Retail, can be downloaded here.
Report Methodology
SOTI’s research was conducted between September 3 and September 14, 2023, via 11,000 self-completed interviews from nine markets around the world. All interviewees were consumers aged 18 to 65. The markets represented were: The U.S. (2,000), Canada (1,000), Mexico (1,000), UK (2,000), Germany (1,000), France (1,000), Sweden (1,000), the Netherlands (1,000) and Australia (1,000). In addition to presenting global, overarching trends, the results were broken down into these individual market tables and regional sets for Europe and North America.
About SOTI
SOTI is a proven innovator and industry leader for simplifying business mobility solutions by making them smarter, faster and more reliable. With SOTI’s innovative portfolio of solutions, organizations can trust SOTI to elevate and streamline their mobile operations, maximize ROI and reduce device downtime. Globally, with over 17,000 customers, SOTI has proven itself to be the go-to mobile platform provider to manage, secure and support business-critical devices. With SOTI’s world-class support, enterprises can take mobility to endless possibilities. For more information, visit soti.net.
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