According to experts at a virtual retail meeting, the numerous e-commerce and virtual retail stores that cater to separate product categories would gradually converge into broader linked virtual hypermarkets or digital supermarket eco-systems.

The global linked retail industry was valued at $16.3 billion in 2016 and $19.46 billion in 2017. However, potential growth is very optimistic, with the industry valued at $82.31 billion by the end of 2025, according to a Transparency Market Research survey (TMR).

Demand in the global linked retail sector is expected to expand at a 19.8 percent compound annual growth rate from 2017 to 2025. However, there are several factors impeding demand that affect retailers.

Although the world after COVID-19 is supposed to rebound more sluggishly than it did after the 2008–2009 global financial crises, e-commerce is the economic happy medium as brands and customers race online, according to Shopify's research, The Future of E-Commerce. According to the survey, “nearly 150 million customers shopped online for the first time during the pandemic, and the number of e-commerce shoppers will only keep rising.”

The ‘Connected Store of the Future' digital retail conference, organized by Images RetailME in collaboration with Honeywell, featured by Piyush Kumar Chowhan, Group CIO, Lulu Group International; Ashish Panjabi, COO, Jacky's Retail LLC; Miroslav Kafedzhiev, Vice President and General Manager, Honeywell Safety and Productivity Solutions; and Phillip Smith, Group Head of Digital, Kamal Osman Jamjoom.

The multimedia meeting, hosted and mediated by Shruthi Nair, Executive Editor of Images RetailME, focused on the prospects of physical stores and the complexities of incorporating technology in brick-and-mortar retail.

“Just like the world has built an appetite for all things digital – from phones to households to full-fledged communities – companies must, if they haven't already, get on the bandwagon. “In this retail decade, we will see AI-driven personalization, AR/VR interfaces, and sensor-equipped digital worlds that could turn today's ‘shopping center' into a thriving, invisible hub for education, entertainment, virtually augmented culture, and new business models we haven't yet imagined,” Shruthi Nair predicted.

Although e-commerce players have benefited for years from its simplicity, ease, and online data, traditional retailers will now get the same access to technology as they become connected shops of the future.

“The commodity will no longer be the distinguishing factor,” said Piyush Kumar Chowhan, Group CIO of Lulu Group International.

The overall retail experience will be significant. The biggest differentiator in this journey of change would be technology, which is one component of the overall digital transformation. Individual digital stores catering to different product categories will gradually merge into eco-system marketplaces where shoppers will be able to get all under one location.

Despite the digital revolution, the dynamics of the retail sector haven't improved, according to Ashish Panjabi, COO of Jacky's Retail LLC, who says, "The customer is at the core of our operations – whether physical or digital retail." However, the number of ways to reach out to consumers has increased thanks to smartphones, and we can already grasp user behavior preferences using Artificial Intelligence (AI), the Internet of Things (IoT), and data analytics.”

“No wonder, digitization, and mobility were in practice before, but what happened (in 2020) is that now acceleration by mobile devices for coping with demand came forth,” said Miroslav Kafedzhiev, Vice President and General Manager, Honeywell Safety and Productivity Solutions. During the pandemic, retailers implemented a slew of new technologies to boost their bottom lines. Retailers have been very successful in the last 12 to 14 months so that they can serve consumers conveniently according to their requirements. In-store shopping has decreased in the retail sector, but selling through e-commerce has increased three to four times.”

Despite the digital revolution and the rise of internet shopping, the panel members at the meeting concluded that traditional retail outlets are here to stay for a longer period.

According to Sayed Habib, Danube Home's Director of Business Development, Franchise, and E-Commerce, "the home improvement division is doing well than ever, as sales at Danube Home increased mostly during COVID-19 pandemic era." Customer traffic in our stores has improved, thanks in part to a heightened focus on home furnishings and luxury as people spend more time at home than ever before.

“The second aspect is that the consumer has to touch and feel the cloth of the couch or bed that they are purchasing because these directly influence your comfortability,” he said. Throughout the pandemic, we bolstered our digital portfolio by collating all of our items digitally, complete with specs and pricing. It undoubtedly aids consumers in filtering their options. They must, however, touch and feel the product. As a result, physical retailers would need to exist for a long time, for those segments.”

Similarly, Piyush Kumar Chowhan said that he thinks physical retail stores will continue to be the backbone of the retail industry for at least ten more years. “It is a little difficult for retailers to manage customer details, but retailers should invest in apps and applications that really can make it easier,” said Philip Smith, Group Head of Digital Kamal Osman Jamjoon Group.

The most important aspect of the retail industry is contact between the retailer and the customer, which can be accomplished by the use of broadcast messages through WhatsApp, Email, and other social media platforms. Besides, we will split a vast number of viewers into small groups based on their desires and requirements.”