The use of technology in retail can be traced back to 1857 to the shopping cart developed by Sylvan Goldman, the owner of a grocery chain called Piggly-Wiggly in Oklahoma City. Although the shopping cart was not the Gen Z- styled gizmo device, it was a leap forward and shaped the way we shop today. It was an innovation which enhanced user experience making it easier to buy in bulk.
Most experts consider grocery shopping a chore and hence, one of the lowest involvement tasks, required to be finished quickly and the shopping cart did just that. From the retailer’s perspective, this yesteryear innovation made its contribution to increasing the basket size (for a detailed description of the term and uses, read blog 2 in the series).
This is the first part in a series briefly describing the evolution of technology use in retail. The series is broken down in five parts as follows:
1. Technology that enhanced user experience
2. Technology that improved retailer convenience
3. Technology that helped in data collection for researchers
4. How research findings were implemented to enhance customer experience
5. Interactive timeline of the evolution of technology in retail
Fast forward 150 years; taking stock of what consumers of today (you) want from stores or chains, the list would boil down to:
a. Ease of locating products, and
b. Faster check outs.
and today’s shopping cart, the one on the web, is not the only much sought after data mine.
In 2010, Darell Rigby outlined the future of retailing in an HBR article, a future that is already here: the shopper shops for clothes online, tries them at store A, takes a video of herself in the trial room, sends them to her friends on her smartphone, receives instant feedback. Scans the QR code to find it cheaper at store B, store A offers to price match.(Jeans with QR codes: Designed especially for men. Simply scan the QR code and the jeans of your size will reach the trial room saving time to find the “right size” in the lot!) Enter RFID: She doesn't wait in the check out line, all the items in her cart have already been scanned by the reader on the cart; she uses the coupon she received on her cell phone as she entered the store, pays by cell phone and the receipt is emailed to her. (Skip check out lines, download Mobile app QThru. Browse, scan and buy products with your phone. The app SoPost uses your email addresses to deliver purchases). Enter NFC: On her way out she receives another special offer on her phone for her next visit.
A Special mention to the Mail Order Catalog first sent by Aaron Montgomery Ward in 1872. The catalog had only a single 8 X 12 inch sheet with a price list, and showed the merchandise for sale with ordering instructions. This was the much sought after gold mine of the yesteryear.
From virtual trails to mobile apps to find organic vegetable with minimum carbon footprints, innovations abound. What will be interesting to see is, what’s here to stay!
Next time: we explore the other side of the table.
Macy's and Bloomingdale's have begun installing free Wi-Fi in about 300 stores to enable smartphone and tablet-technology use for shoppers ('RETAILING TODAY' 2011, Sctweek, 16, 37, p. 6, Business Source Complete, EBSCOhost, viewed 30 June 2013.)
William J. Regan
Journal of Marketing , Vol. 25, No. 4 (Apr., 1961), pp. 15-21
Published by: American Marketing Association
Article Stable URL: http://www.jstor.org/stable/1248986
Darrell Rigby
The Future of Shopping
Harvard business review, Vol. 89, No.12 (Dec., 2011), pp. 64-75
Published by: Harvard Business School
Article URL: http://hbr.org/2011/12/the-future-of-shopping
The Challenges of Scanner Data
Steve Baron and Andrew Lock
The Journal of the Operational Research Society
Vol. 46, No. 1 (Jan., 1995), pp. 50-61
Published by: Palgrave Macmillan Journals on behalf of the Operational Research Society
Stable URL: http://www.jstor.org/stable/2583835
