How Digital Transformation Boosts Retail Sales in Canada

Digital transformation is reshaping the retail industry. Businesses are undergoing significant changes as more consumers have digital devices at their fingertips. How are retailers adapting to digital technology, and what does it mean for them and their customers?

What Digital Transformation Means for Retailers
Technological advancements are enabling retailers to improve margins and streamline new processes. Digital transformation offers a customer-focused approach, innovation, agility, and data intelligence.

Technological updates are expanding, and retailers need to concentrate on these new developments by reorganizing how their businesses operate. Inventory planning, pricing structures, customer expectations, supply chain management, and employee engagement are some of the ways retailers anticipate restrategizing to boost their revenues.

Digital Transformation Matters in the Retail Sector
Companies are promoting growth through the integration of digital technologies. Retailers are hiring talented employees to bring products to market faster using collaborative tools and digital innovations.

One example illustrates that the cosmetics industry is constantly evolving for quicker communication and to prevent order delays. The beauty supply chain is leading the charge with EDI (electronic data interchange). EDI technology automates exchanges between invoices and other documents for more efficient transaction processing.

Companies are also adopting best practices in the face of digital transformation by reorganizing their departments and forming cross-functional teams. These commitments ensure retailers can focus more on the best ways to serve customers. Retailers are looking to change the in-store experience since 40% of consumers want more sales associates to increase their knowledge of product offerings.

5 Ways Digital Transformation Is Boosting Retail Sales
Retailers are cultivating a culture of innovation and redefining their decision-making processes with new customer insights and data technology. This adaptation enhances organizations’ engagement with customers, providing more value for their business.

1. Enhancing Shopper Experience
   Digital transformation is influencing how shoppers experience the retail industry. More consumers are using digital devices to shop online. In the past year, 65% of global internet users have purchased a product online. To enhance productivity efficiency, employees can offer higher-quality services through digital tools. While employees can better serve more customers, these tools offer a pleasing experience during the customer journey.

2. Operational Improvements
   Cloud technologies are enabling retailers to enhance their operations. They allow retail workers to respond more quickly to customers, advancing overall support. Real-time data is readily available to aid in product supply and demand predictions to ensure stock is ready in advance.

3. Increasing Communication
   Chatbots, social media, websites, and mobile apps provide retailers with better ways to communicate with their customers.

4. Accessibility
   Artificial intelligence (AI) automates the customer shopping process in physical stores, allowing them to check out without a cashier. It also automates the process for consumers shopping online via websites and mobile apps. AI helps retailers enhance the customer experience by tracking inventory, locating products, remembering customer preferences with enhanced personalization, and maintaining stocked shelves.

5. Increasing Revenue
   Digital transformation is creating opportunities for retailers to reach more customers, enabling them to generate more revenue.

4 Digital Trends Transforming the Retail Sector
As digital transformation benefits retailers in various ways, technologies continue to evolve. Here are a few digital trends to watch:

1. Augmented Reality (AR)
   AR technology enables customers to see how products would look in their homes digitally. A notable example is Target’s mobile website. A few years ago, Target launched a feature called “See It in Your Space.” This technology allows customers to view furniture in their homes from a 3D perspective.

Amazon has also collaborated with L’Oreal to offer AR for beauty shoppers. Through the Amazon store’s app, customers can view several lipstick shades to see which colours suit them best. While lipstick shades are currently the only option available for virtual try-on, more beauty products will be added in the future.

2. Mobile Apps
   Mobile apps allow customers to connect with retailers in multiple ways. With the tap of a button on their smartphones, people can read product reviews, look for updates, and contact customer support when needed.

3. Internet of Things (IoT)
   IoT enables retailers to track and collect data more efficiently with point-of-sale, supply chain planning, and inventory management systems. It also offers the capability to deliver real-time product promotions through behavioural insights. Conversion rates are also increasing with the practice of upselling and cross-selling driven by consumer data and insights on purchase history.

4. Virtual Reality (VR)
   VR technology can enhance the way customers shop. This technology will be more readily available, allowing people to shop for houses, cars, and more without leaving their homes.

Digitalization Is Transforming the Retail Sector
Digital transformation is benefiting both consumers and retailers. As technology advances, businesses should strategize new ways to implement it. Retailers need to adapt to consumer demands to gain competitive advantages.