In-store tech investments are a major opportunity in 2024, experts say

The humble brick-and-mortar store could be at the center of a new wave of tech investment in 2024.

Fresh off industry events such as the Consumer Electronics Show and NRF’s Big Show earlier this month, Nikki Baird, retail analyst and VP of strategy at Aptos, told Retail Brew that “one area where we did see a lot of movement was around the store.”

Echoing this sentiment, Deloitte’s new 2024 US Retail Outlook report predicts stores will be key to improving the omnichannel experience and outlined some key technologies to become more efficient and improve customer loyalty. These include AI-powered data analytics, intelligent tags, and optimized pricing and store design.

The report also highlighted that, despite investments in the omnichannel shopping experience during and after the pandemic, inconsistencies remain that can erode trust and damage customer loyalty—a situation that retailers can’t afford “as consumers consider trade-offs, try out the competition, and hunt for the best deals.”

Playing catch up: As Retail Brew reported previously, some retailers are getting proactive about these challenges. Walmart and Target, for example, are currently investing in stores to provide a “stickier” customer experience, Neil Saunders, retail analyst for Global Data, previously told Retail Brew. More investment of this kind now appears likely.

Baird explained that the pandemic made it difficult for stores to invest in technology, and now retailers are playing catch-up, sinking dollars into overdue upgrades.

The nature of these investments varies between retailers, but Baird is noticing some common themes. For example, many are exploring the practical application of radio-frequency identification (RFID) technology, which is “getting more information into store associates’ hands so that they can act on the moment when that customer is in front of them.”

Falling under what Deloitte calls “intelligent tags,” RFID technology uses radio waves to wirelessly read information about particular products. Industry experts have anticipated its widespread adoption among retailers for at least the last few years, but Baird said those predictions may finally come to fruition this year.

“I think 2024 is going to be the year of real RFID rollouts in apparel for store fulfillment,” she said. “Inventory accuracy so that you can promise an online shopper that last piece of inventory with confidence—that’s the business case driving RFID.”

Less impressed: On the flipside, there are some technologies that might need more time to develop before retailers start taking them seriously. While generative AI was a buzzy topic at recent events such as CES, Baird said there were relatively few clear applications for stores. She offered a similar perspective on augmented and virtual reality capabilities.

“I think everybody uses [AR and VR] as a shortcut for trying to describe how technology might enable a customer experience,” Baird said, but something like RFID is closer to actual adoption.