Retail innovations: 2024 trends to follow!

Retail is in a state of flux, driven by a wave of technological innovations that are revolutionising the traditional shopping experience. With the rise of connected retailing, consumers are demanding a hyper-personalised relationship, a seamless journey across channels, and immersive interactions.

The year 2024 will see a number of major trends in the retail sector come to the fore: the revival of physical shops, a rethink of omnichannel, the emergence of employees equipped with connected tools, the exploitation of AI to personalise the customer journey, and a heightened eco-awareness. Dive into this article to find out how you can take advantage of these retail innovations to stand out in this ever-changing landscape.

The revival of the physical shop thanks to retail innovations

The "click and mortar" model at the heart of retail innovation

The “click and mortar” model refers to a business strategy that combines online sales with physical shop sales. It refers to traditional companies that have expanded their business by offering online sales in addition to their physical shops, thereby leveraging the benefits of both online and offline channels. This omnichannel business model makes it possible to offer a more coherent and complete customer experience. Click and mortar” refers to a business that relies on both a physical shop and online sales. This model has become increasingly important with the Covid-19 events, which have changed consumer habits and penalised 100% of physical activities.

Success stories from "click and mortar" companies

Here are a few examples of well-known companies that have adopted the “click and mortar” model:

Most of the major ready-to-wear brands, such as CA, Brice, Zara, and HM, offer both physical shops and online sales.
The major household appliance and furniture brands (Conforama, But, Ikea, etc.) combine shops and e-commerce.
Major food retailers such as Auchan, Leclerc, and Carrefour offer home delivery in addition to Click and Collect and Drive options.
Delivery platforms such as Uber Eats, Deliveroo and Just Eat enable restaurants (physical businesses) to offer their menu online, bridging the gap between the physical and the digital.

Advantages of combining online and physical

The “click and mortar” model offers several advantages for businesses and consumers alike:

For companies

Increase in the number of sales thanks to the online offer, which is often wider than in-store.
Possibility of targeting a national or even international clientele via the internet.
Increased brand awareness, a stronger brand image, and a direct relationship with the customer thanks to physical contact.
Unique benefits such as “click and collect”, which eliminates delivery charges

For consumers

A seamless shopping experience combining online convenience and in-store personalisation.
You can compare products online before seeing them in the shop, reducing the risk of buying them.
Easier comparison of prices and products.
Quick delivery thanks to the in-store collection.

Click-and-mortar companies succeed by investing in technology to enhance the shopping experience and by offering personalised in-store services that cannot be replicated online, thereby standing out in a competitive market.

Omnichannel at the heart of the customer journey

The major trend driving the evolution of sales channels is the combination of online and offline channels, known as omnichannel. This practice aims to create a consistent, seamless customer experience that enables consumers to move from one channel to another without friction.

Consumer expectations for a hybrid experience

Consumers are increasingly demanding: according to the Qualtrics Customer Trends Report 2024, they consistently expect impeccable experiences, whether they’re shopping on a website, contacting a customer support centre, or using a chatbot. The digital age has transformed their expectations, and they are now looking for seamless, personalised shopping experiences, regardless of the channel they use.

The importance of channel integration

This omnichannel integration can be achieved by several methods, including the synchronisation of online and offline operations, the introduction of the ability to buy online and collect in-store, and the use of data gathered from the web to enhance the in-store experience. This method also makes it possible to meet consumer expectations in terms of flexibility. The different sales channels need to be integrated in such a way as to enable a seamless transition. For example, a customer should be able to start a purchasing process online and complete it in-store.

Omnichannel marketing is not just about having a presence across multiple channels. It’s about creating a unified, personalised experience that allows users to move effortlessly from one channel to another. The convergence of physical and digital commerce means that organisations must be able to provide a seamless and consistent shopping experience across all channels.

The technological challenges of retail innovation for a successful omnichannel strategy

The adoption of technological tools such as order management systems, CRM (Customer Relationship Management) platforms, and data analysis software are essential for monitoring and optimising omnichannel performance. The essential ingredient for satisfying consumer expectations is technology. With the right omnichannel customer engagement platform, brands can unify their customer, sales and product data, connect their online and offline channels, and deliver a seamless, integrated experience wherever their customers choose to shop.

Connected employees drive retail innovation

The crucial role of employees in retail innovation

Sales staff have a major role to play in attracting and retaining customers. Their commitment and well-being are crucial to delivering a satisfying customer experience. The importance of their technologically advanced presence will be decisive for the growth of the retail sector in 2024.

Technologies to automate repetitive, low-value tasks

That’s why solutions for automating repetitive tasks are emerging as a major trend in the new year. To achieve this, retailers need to integrate the software needed to carry out the most repetitive and tedious tasks, freeing up employees for higher added-value tasks, such as customer relations.

Developing the employer brand

The notion of employer brand is becoming crucial, as it embodies a company’s commitment to its most precious asset: its employees. At the heart of this competition lies the construction of a strong and solid employer brand, a delicate art that combines values, corporate history and transcends the company’s simple image to become an essential element of its identity. The faces of the sales teams embody the brands and their employer brands.

There are several key elements to developing a strong employer brand:

An authentic corporate culture that strengthens the trust of talent, creating synergy between the brand promise and the day-to-day reality of employees.
Ongoing professional development programs that demonstrate a commitment to employee growth.
Attractive working conditions, with benefits and regular recognition to help retain talent.
Innovation and social responsibility, attracting professionals motivated by impact and contribution.

If customers represent the market, employees represent the company. It is through them that the management policy reveals itself. It is therefore important to gather their opinions daily and involve them as ambassadors to strengthen the feeling of belonging to the employer brand. The employee experience is a strategic lever for improving the employer brand, as satisfied employees are more likely to speak positively about their company and become involved in its development.

Artificial intelligence at the service of retail innovation

Benefits for retail

Artificial intelligence (AI) is impacting the entire marketing mix of retail players. It helps build consumer loyalty by creating a seamless omnichannel experience between physical and digital channels, with customer services available 24/7 via intelligent chatbots, personalised recommendations based on browsing history, and automated returns and refunds.

AI is also enriching the shopping experience with innovations such as virtual fitting rooms and interactive shop windows, encouraging customers to visit shops. A recent survey found that 65% of French people identify at least one advantage that AI brings to their day-to-day shopping, including speed (46%), comfort (37%) and greater personalisation (29%).

The importance of first-party data in retail innovation

First party data (FPD), collected directly from customers with their consent, is crucial to fully exploiting the benefits of AI. In the face of the elimination of third-party cookies, DFP will be the obvious choice, offering more accurate analyses of user preferences, while being more secure, transparent and compliant with confidentiality standards.

A study reveals that companies using DFP for their marketing strategy have increased their revenue by 290% while reducing their advertising budget by 150%. Technologically, the use of DFP requires integration on retailers’ sites to federate customer data scattered across various systems, providing a unified view for personalised marketing campaigns.

Confidentiality and transparency issues

With the rise of AI, companies must take into account the risks associated with confidentiality and transparency when choosing to implement AI solutions. Gartner predicts that by 2025, 1% of AI vendors will concentrate the majority of pre-trained models, making responsible AI a major societal concern for businesses.

The retail sector is experiencing a sharp increase in cyberattacks, with the rate of ransomware attacks rising from 69% to 77% in one year. Retailers need to put in place full monitoring and traceability of their operations to ensure the security of customer data and transactions, and to guarantee regulatory compliance.

The enhanced customer experience

Using virtual and augmented reality

Artificial intelligence and augmented reality make it possible to offer customers personalised shopping experiences, try out products virtually and reduce uncertainty, thereby boosting online sales. By analysing customer data far more thoroughly than a human could (and in record time), artificial intelligence can tailor responses to the specific needs of each user. It also provides instant answers to frequently asked questions, as well as identifying and resolving potential problems.

In concrete terms, the superimposition of virtual elements in the real world makes it easier for users to make decisions, improves their engagement with a brand, and makes their shopping experience more pleasant and personalised. These augmented reality applications offer customers an unprecedented level of interaction with products, enabling them to make more informed choices and enjoy a more rewarding shopping experience.

Creation of an immersive experience

The concept of hybrid retail is gaining ground, merging online and offline experiences to create a seamless customer journey. Brands like Nike, with its House of Innovation shop in New York, offer an immersive customer experience where the digital and the physical meet, creating a unique shopping experience that increases customer engagement and loyalty.

The personalisation of the customer experience through augmented reality is opening up new horizons for retail. To meet the increasingly demanding expectations of consumers looking for a unique and memorable shopping experience, some brands have already begun to exploit this technology to offer an ultra-personalised experience:

Product personalisation: By allowing customers to visualise a product in a real environment (e.g. their own home) or to customise product options according to their preferences, augmented reality creates a unique and individualised shopping experience.
Personalising the shopping experience: Augmented reality can also be used to create personalised shopping experiences in-store. For example, an augmented reality application can guide customers around the shop based on their preferences and purchase history.
Personalised customer service: Augmented reality can improve customer service by providing personalised information in real-time. For example, a virtual advisor can help customers make their choice by providing personalised advice.

Augmented reality is transforming the way people shop, enriching the interaction between consumers and products. As a result, shopping journeys are becoming smoother and more personalised. Augmented reality offers brands new ways of interacting with consumers in real-time, providing a new level of customer service.

Eco-responsibility, a priority for retail innovation

Second-hand trend

Consumers, concerned not only about the environment but also about their purchasing power, are turning to second-hand clothing and clothing hire. Demand for these more sustainable options is exploding. A recent study by ThredUp (2024) indicates that the resale market is set to double over the next 5 years. This trend is part of a desire by companies to move their business models towards greater sustainability while promoting commercial performance, which is becoming an imperative for the retail sector.

More and more retailers are focusing on sustainability and second-hand goods, through second-hand or reconditioned products:

The “Second Chance” area at Maisons du Monde sells products on display or damaged in transit.
In the IDKIDS Group network, the Okaïdi brand has set up second-hand children’s clothing corners, and Oxybul has a second-hand toys and books corner.
Printemps Haussmann is devoting 1300 m² to circular fashion, vintage, and second-hand items.
Trainer brand Veja has launched its shoe repair shops to clean, repair, and recycle customers’ shoes.

Product traceability, a challenge for retail innovation

In Europe, we are witnessing a significant expansion in second-hand goods, with more and more consumers choosing to buy second-hand products rather than new ones. Expectations in terms of product traceability are high, with a growing demand for information on the origin of the materials used and the manufacturing conditions.

Decarbonisation and the circular economy

Decarbonisation and the circular economy are key concepts in this quest for eco-responsibility. Companies need to rethink their production and distribution processes to reduce their carbon footprint and encourage the reuse and recycling of products. This means rethinking the materials used, adopting more sustainable production practices, and setting up systems to collect and recycle products at the end of their life.

Brands need to equip themselves with the right tools to embrace this trend and meet consumers’ expectations in terms of ethics and sustainability, who want to be fully involved in this eco-responsible approach. This means investing in technologies and tools that can track the traceability of products, assess their environmental impact, and communicate transparently with customers about the efforts being made in this area.

Factors promoting eco-responsibility

Worsening climate crisis: This shift towards eco-responsibility has always been strongly correlated with the worsening climate crisis. As temperatures rise, heatwaves become more intense, natural disasters more frequent, biodiversity declines, and water stress becomes a major concern, the consumer shift towards going green is likely to accelerate.
Changes in consumer habits: 29% of French people are now in favour of eco-friendly purchases and organic products, while 28% want to limit their consumption to really essential needs, 3 points more than in 2021.
Demand for transparency: These new consumer expectations should encourage retailers to take action by making responsible consumption more accessible, increasing the proportion of environmentally-friendly products, lowering their prices, and providing better information to consumers who are eager for reliable benchmarks to help them make the right choices. 82% of French people said they expected companies to inform them about the ecological nature of production methods and the most ecological uses of their products.
Quest for authenticity: According to Jean Viard, sociologist and director of research at the CNRS, “Industrial society is a society of the new, a society of the new object. But once that’s acquired, what people want is authenticity”. This quest for authenticity is stimulating growth in the second-hand market, which is becoming a major factor in retail sales.
Decarbonising retail: The need to decarbonise retail also means rethinking supply distances in favour of local products. 90% of the sector’s carbon footprint comes from products that require long journeys, generating large quantities of CO2. Bringing the point of sale closer to the point of production is therefore an effective way of reducing emissions.

The retail sector is undergoing radical change, driven by a wave of technological innovations that are rethinking the shopping experience. From artificial intelligence and augmented reality to omnichannel and eco-responsibility, retail players and retailers have many ways of standing out from the crowd. However, at the heart of this transformation is the imperative to put the customer at the center, by offering a personalised, fluid, and engaging experience across all channels.