The term “smart stores” has been accompanying the e-commerce industry for more than ten years. The thing is that only now, during the last two years, stores have become truly smart. At least in the sense that this “smartness” brings value to store owners and their customers.
What enabled this leap forward in this field is the combination of two technologies: AI and IoT. This combination enables the creation of smart stores that allow shopping without the need for checkouts and queues.
Amazon Go was the first store to implement smart capabilities in an accurate and consumer-friendly way — it allows customers to enter the store, choose products, and leave without stopping at checkout, as billing is done automatically through product scanning. These smart stores are built on sensor systems and cameras that analyze customer movement and identify items taken. It turns out that while consumers don’t want to deal with technology, they are happy to enjoy the significant benefits it brings in terms of shopping experience and saving time and money.
What other trend has strengthened during the last year?
The implementation of new technologies is happening alongside the creation of a very significant revenue channel for retailers — Retail Media . This term refers to advertising on e-commerce sites and their applications. In recent years, this advertising has only gained momentum and become a substantial portion of digital stores’ revenue pie.
Global Retail Media Market, valued at USD 115 billion and is Projected to reach USD 231.28 billion by 2030
Advertising on shopping sites is precise and targeted in a way that results in better performance than traditional media companies. This is when comparing CTR & Conversions data.
The field of retail network advertising leads what is called Moment Marketing — which is a contemporary marketing strategy that focuses on creating and promoting products and content that are timely and relevant to current opportunities, activities, and events.
This approach aims to engage consumers in real-time, fostering spontaneous conversations and connections through various channels, including social media, email, and traditional advertising . It’s important to remember that the retail industry is characterized by low profit margins, so from shareholders’ perspective, entering the targeted advertising field is definitely an important strategic move.
