The retail sector is no stranger to change and transformation. In the early days, the average consumer was shopping from 'mom and pop' stores in communities. As retail evolved, first to arrive were the department stores in the bigger cities. Then came the mega shopping centers in suburbs, where everything can be found under one roof, causing smaller local stores to bow out to the success of giant, one-stop shops.

But the impact of technology may be the greatest game-changer of all. Fundamental shifts and shocks, like the power of distribution technology, the impact of advertising and branding, the sea change the web unleashed and the ability for anyone to ultimately sell to anyone, anywhere, have changed the way we shop, forever. Consumers don't even need to leave their houses to shop or can buy things on their daily commute, putting convenience at the heart of the shopping experience.

The latest wave of emerging technology is affecting both smaller, local shops as well as the retail giants. One underlying theme for each wave of change is that the incumbents of all sizes have either adopted or died. Retailers which have been unprepared for new ways of doing things have found themselves in a graveyard of 'has-beens' and joined a list of those which have suffered, such as Circuit City, Borders, Blockbusters ... to name just three.

What is apparent is that easier access to information is pushing the retail sector closer to what 18th century economist Adam Smith described as 'perfect information' -- the idea of having equal information from all providers in order to make a choice. In effect, this is creating equal pressures for all retailers. As a result, it is no longer sufficient to solely compete on price; retailers that are one step ahead think of the entire customer Relevant Products/Services journey and satisfaction. The blurring of the lines between retail and other industries, such as telco and financial services, are also having a significant impact on the competitive dynamics of the sector.

Three main areas where technology is transforming retail include supply chain, in-store operations, and customer outreach. The technology footprint leading this transformation is impacting many stages of the retail chain; from back office and enterprise systems, to many customer-facing functions such as payments, loyalty programs and customer services.

Supply Chain

Walmart is a case in point of how using technology in the supply chain can set apart a discount retailer competing in a division with razor thin margins; by accurately forecasting demand, tracking and predicting inventory levels. Walmart employs the largest IT infrastructure of any private company. Walmart also leverages its online presence to penetrate large cities that don't allow a traditional Walmart big box store.

The technology advancements in the supply chain are also enabling new business models in the retail sector. Until now, physical stores had the protection Relevant Products/Services of immediacy compared to online. Customers want things cheap and they want them now. E-commerce could compete on price, but not speed of purchase and availability. However, technology giants such as Amazon, with Amazon Prime and Amazon Fresh, or Google, with Google Express, and even Uber are slicing away the advantage from bricks-and-mortar retailers by piloting same day delivery services which provide a further threat to physical stores by catering for immediate needs.

In-Store Operations

Similarly, in-store operations have been transformed by new developments such as interactive kiosks, mobile payments, BLE technology, RFID tagged products and smart shopping carts. Most of these aim to reduce the friction of in-store customer experience; from minimizing wait times at the register to making sure customers can find out which products are in stock, while still managing an efficient inventory. Smartphone penetration in particular is creating pressure on physical store sales Relevant Products/Services, and trends such as "showrooming" are causing physical stores to become the means for customers to see or try the goods they want, only to find a cheaper alternative online. Battling this phenomenon requires stores to be up to date with their inventories as well as other alternatives available to their customers from their competitors. Alternatively, retailers should find ways to leverage technology to improve in-store experiences. Innovations such as virtual mirrors and interactive kiosks can also refuel customers' desire to shop in store.

Customer Outreach

Perhaps the biggest transformation is happening in customer outreach on the back of Big Data and predictive analytics technology. The customer experience is no longer limited to browsing or purchasing of certain goods in physical stores. It now extends to an end-to-end customer journey, starting with the customer researching the goods online, coming into a store or ordering online to purchase the goods, and continuing well after the purchase has been finalized by vocalizing feedback about the product and the brand.

Throughout this journey, customers are leaving breadcrumbs of information that some retailers ignore and sweep away, but others leverage Big Data/Predictive Analytics to make sense of this information, and use the insights to encourage customers to spend more at their stores. The infamous Target example of a father discovering his daughter is pregnant thanks to a personalized flier from Target advertising pregnancy and baby essentials is a great demonstration of the power of using Big Data. It is also a reminder of the responsibility of protecting customer privacy in light of this new-found power.

The impact of technology on retail shouldn't be seen as the writing on the wall for remaining incumbents and physical stores, but rather a wave of change that if caught, can be as lucrative as it is for innovative tech-based retail companies. It's no secret that many retailers are already harnessing the benefits of technology: according to a survey carried out by Samsung among retailers, 94 percent of retailers believe the customer of the future will be driven by technology and 41 percent are already using it to implement a strategy to enhance the customer experience. The best path forward is to embrace the technology advancements as tools to build and strengthen a customer centric omni-channel presence.