Digital transformation in the South African retail sector: A case for self-service technologies

Abstract

The retail landscape is evolving and transforming at a rapid pace. The same can be said about self-service technology (SST) and its various implementation and roles in retail in South Africa, which was explored in this study. This qualitative study conducted 14 semi-structured interviews with practitioners responsible for digital transformation from different retail organisations. Thematic analysis yielded 17 subthemes and five themes: essentials for adoption, business efficiency and customer experience, strategy and socioeconomic issues, infrastructure stability and reliability and partnership, collaboration and development. Various industries have utilised SSTs for a number of years, with varying results. SSTs enable businesses to increase efficiency and reduce expenses when approved and implemented effectively. However, even though consumer approval and use of SSTS is on the rise, it is important to remember that its implementation requires significant investments, the reallocation of employees’ job functions, the risk of robbery, and, ultimately, the possibility of a lack of customer and union acceptance. Technological recommendations include taking cognisance of the required critical capabilities, taking steps to co-create with customers and the importance of conducting pilot projects. Organisational recommendations included reskilling/upskilling existing employees, designing worker-centric systems, aiming for digital culture and maturity, thorough consideration of the deployment sites, incentivising customers to make the change and meaningful engagement with unions. Environmental recommendations included industry-specific considerations, market dynamics and the acknowledgement of the digital divide in RSA.