Measuring the role of digital innovations on customer experience in the transformation of the ‘future store’ in the retail industry

Abstract

The retail industry is undergoing significant transformation driven by digital innovation, particularly in enhancing customer experiences. While prior studies have explored attributes of online shopping and traditional store environments, there is a notable gap in understanding how digital innovations impact the physical retail experience. This study seeks to bridge this gap by examining the role of digital innovation in shaping the future of brick-and-mortar stores amidst the growing influence of online shopping impacted by the pandemic. Through an extensive literature review and an online survey, the research reveals key relationships between customer expectations, in-store experiences, and the adoption of digital innovations such as artificial intelligence and machine learning. These technologies are vital in creating seamless, personalized, and immersive experiences that bridge the gap between physical and digital shopping environments. The study highlights the importance of factors like quick service, effective store layouts, and digital tools for data collection. Despite the challenges and costs associated with digital transformation, the findings suggest that embracing innovation is essential for retailers seeking to maintain a competitive edge. The integration of omnichannel strategies is particularly significant in enhancing customer experiences and ensuring sustainable growth. However, the study acknowledges limitations in data collection and calls for further research to gather insights directly from merchants. Future studies could also explore cross-country comparisons to better understand variations in digital adoption across different markets and regulatory environments.