Use Of Technology for Retail Stores Samples †MyAssignmenthelp.com

Question: Discuss about the Use Of Technology for Retail Stores. Answer: Introduction Technology has significantly changed the business world. Currently, the mass migration from the traditional brick and mortar to online business strategy has been observed in several industries. This migration aims to meet the changes that are ongoing in the society. However, some businesses have been reluctant to incorporate this wave of technology into their activities. With the proponents of technology claiming that brick and mortar method face extinction in the future, scholars have illustrated interests in unveiling how technology affects the future of retail stores. The retail industry is one of the most competitive sectors in the modern business world. The heated rivalry between Aldi and Woolworths in Australia is an ideal example of the competitive nature of the retail industry. Technology adoption in the retail industry has been widespread in spite its effects being uncertain. Despite the spread of technology in the retail market, physical stores will not be extinct in the fu ture as there is more to shopping than convenience and quick delivery. Analysis Aldi is among the few retail stores that believe that technology cannot replace the physical stores. The store uses technology for marketing and utilizes its physical stores to enhance customers experience. In Australia, Aldi is one of the retailers that insist on physical presence. With the grocery retailer insisting on providing quality products at a low price to its customers, it has silenced the proponents of technology who claim that brick and mortar influence is dwindling. In its official website, Aldi states that is has over 10,000 stores globally, and over 470 throughout Australia (Aldi, 2017). Despite its physical presence, Aldi ranks among the top ten grocery retailers in Australia further silencing the brick and mortar critics. Interestingly, critics of Aldis business strategy claims that the stores lower pricing methodology has enhanced its competitive advantage in the wake of technology inception in the retail market. However, it is essential to note that business is about strategizing (Min, 2010). In business, one only accepts changes that will add value to your customers, business idea and mission. For Aldi, technology has proved insignificant to its progress in the present. Aldis perception towards technology adoption is supported by the deliberation of Grewal et al. (2017) in their article on the future of retailing. According to Grewal et al. (2017), technology should be used to enhance customer engagement not to replace the physical presence of enterprises. Technology is vital for collecting customers perceptions about a brands services and products (Shankar et al., 2016). Furthermore, it is important in the marketing of a brands products. In this respect, Grewal et al. (2017), predict that technology will not wipe out the physical presence of retail stores. However, they warn that retailers cannot assume the growing influence of technology on the customers purchasing decisions. Consequently, it essential for retail stores to select the elements of technology that they consider vital to their sustainability and attainment of their strategic goals. Customers are the most important factor in the retail market. However, this does imply that retail decisions are solely focused on customers. Kumar et al. (2017) argue that retailers should develop and implement business strategies at four levels. These four levels focus on the market, firm, store, and customers. Currently, the widespread inception of technology is based on the customers alone. In fact, Kumar et al. (2017) point out that there is insufficient data on the customers preference for online stores over the physical ones. As Kumar et al. (2017) advice, it is essential to address the needs of all customers in the retail world. Precisely, not all customers support the concept of online shopping. Some customers value the social aspect of physical shopping with families and friends. Moreover, not all customers are conversant with technology. Consequently, replacing physical stores with the online platforms will inconvenience some customers. The profitability and sustainability of retail stores depend on how they address the different needs of customers. According to Grewal, et al. (2017), quick and convenient shopping is just one of the multiple needs of the customers. However, quick and convenient shopping is not among the basic needs of customers. As Kumar et al. (2017) expound, important factors such as price, quality of products, and customer care suppress the influence of technology in customer decisions. Aldi has compensated it technology inadequacies with quality products and cheap pricing. Moreover, Aldi has been quick to stock grocery products based on the changing customer needs. Currently, Aldi prioritizes selling health supporting products to satisfy customers' demand for healthy eating. In this respect, retailers should strive to meet the customers preferences inclusively not selectively. Recommendations Kumar et al. (2017) opine that retailers who optimize product assortment across different channels perform better than those who focus on a single platform. In this respect, it is vital for retail stores to exploit all the existing channels to maximize their profits. This view implies that retailers should use technology to complement their physical stores. Although Aldi has been successful without investing intensively in its online market, it a high time they reconsider their stand. The management of Aldi needs to consider the interests of their clients that prefer online purchasing. With demographic surveys indicating that the millennials will dominate Australia's population in the future, it is essential for Aldi to meet this groups technology needs. Moreover, Aldi needs to enhance its online platform to increase its competitive advantage. Aldis main competitors such as Woolworths and Coles have already diversified their activities to embrace online retailing. To maintain its com petitive advantage, Aldi should promote its online retailing activities the same way it supports its physical stores. Conclusion Conclusively, technology will not wipe out physical retail stores in the future. Instead, these two platforms will work in a complementary manner. Currently, Aldis success is an ideal illustration that there is more to retailing activities than technology inception. Although the firm uses technology for its marketing and customer support services, it prioritizes its physical presence. Moreover, Aldi compensates its online inefficiency by offering its clients quality products at a reduced cost. However, with research indicating that technology is an influential factor in customers purchase decision, Aldis management needs to support its online retailing activities to meet the needs of their digital customers. References Aldi, 2017. About Aldi. [Online] Available at: https://corporate.aldi.com.au/en/about-aldi/[Accessed 28 September 2017]. Grewal, D., Roggeveen, A. L. Nordflt, J., 2017. The Future of Retailing. Journal of Retailing, 93(1), pp. 1-6. Kumar, V., Anand, A. Song, H., 2017. Future of Retailer Profitability: An Organizing Framework. Journal of Retailing, 93(1), pp. 96-119. Min, H., 2010. Evaluating the comparative service quality of supermarkets using the analytic hierarchy process. The Journal of Services Marketing, 24(4), pp. 283-293. Shankar, V. et al., 2016. Mobile Shopper Marketing: Key Issues, Current Insights, and Future Research Avenues. Journal of Interactive Marketing, Volume 34, pp. 37-48.