Friday 22 February 2019

Schmitz: Research indicates Zebra retail customers are
growing faster than industry

EMEA retail sales to see 3pc growth to $5.4trn

WASHINGTON, January 16, 2018

Retail markets in Europe, the Middle East and Africa (EMEA) are estimated to grow approximately three per cent over the next five years to $5.4 trillion in sales, said a new report.

Ecommerce is projected to eclipse $1.5 trillion by 2021, added the study entitled “2017 Retail Transformation Study” and released by Zebra Technologies Corporation, a market leader in rugged mobile computers, barcode scanners and barcode printers.

The study, conducted with IHL Group, a global research and advisory firm for the retail and hospitality industries, highlights the transformation of the retail sector as the model evolves to better serve consumers. IHL projects retail industry sales to rise three per cent annually through 2021 led by a shift to greater ecommerce/omnichannel sales volume. Zebra’s customers are also investing more in technology and growing faster than the industry average.

  Key survey findings

•    2017 saw more retail store openings than closures and store openings are expected to outpace closures through 2021.   IHL research estimates that the enterprise retail market (more than 50 stores) had 4,080 net stores opening through October 2017. In fact, 42 per cent of retailers had a net increase in stores while only 15 per cent had a net decrease.

•    IHL projects technology spending among retailers to rise approximately three per cent over the next three years as retailers continue to evolve their operations to support unified commerce and provide a modern, engaging customer experience for today’s savvy, empowered shoppers.

o    Mobility is a driver for most surveyed retailers who plan to invest in mobile barcode or thermal printers, handheld barcode scanners and mobile computers within the next three years.

•    Zebra’s customers are retail leaders and growing faster, prioritizing key technologies and spending more on IT than the broader market to make the shopping experience more convenient and drive operational productivity.

o    Retail leaders are investing two-to-three times more than the average retailer in IT transformation and associate training and tools.  They are also more focused on increasing inventory visibility and lowering supply chain costs.

o    In the Department Store/Specialty Store/Mass Merchant segment, retailers that are growing their business with Zebra are reporting 64 per cent higher revenue growth, 135 per cent higher store growth, 33 per cent more store remodels and 53 per cent more enterprise IT spend than the surveyed industry average.

o    In the Grocery, Convenience Store, Pharmacy and Super center retail segments, Zebra customers are increasing their IT spend at a rate 232 per cent higher than the surveyed industry average while growing stores at a rate 60 per cent higher and remodelling stores at a 22 per cent higher rate.

•    Store and fulfilment operations are transforming dramatically to adapt to evolving retail models.  Among surveyed North American retailers expecting growth of more than five per cent, 60 per cent cited faster sales growth as a key driver for changes in store operations while 52 per cent cited the shift in sales to online purchases.  Interestingly, 52 per cent identified same-day delivery as a key warehouse operations driver as consumer demand is encouraging retailers to improve the in-store returns process and enhance their fulfilment and delivery strategies.

 “In North America alone, retail sales are set to rise to more than $5.5 trillion by 2021, so it’s critical retailers are equipped to meet customer expectations.  Consumers used to ‘Have to Shop’ and now they must need to ‘Want to Shop’ at stores.  Retailers that are focusing on the customer experience, investing in better training of associates and integrating IT systems across channels will be the ones that will continue to succeed,” said Greg Buzek, founder and president, IHL Group.

Jeff Schmitz, senior vice president and chief marketing officer, Zebra Technologies, said: “Zebra’s Retail Transformation study confirms that the key growth drivers in retail are multi-channel retailing, in-store connected technology and connected store associates.

“It is critical that retailers continue investing in the shopping experience and operational efficiencies. Understanding the retail transformation underway allows retailers to invest in the right technology now to meet the evolving demands and needs of their customers and ultimately earn more of their business.” – TradeArabia News Service

Tags: Shopping | Zebra |

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