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Why retailers integrate technology in their operations

This includes virtual and augmented reality, and data analytics, amongst others.

The retail industry is adopting technology to attract customers back to physical stores and to offer immersive shopping experiences from customer engagement to the checkout processes.

In the Global Powers of Retailing 2023 report, Deloitte said advanced technologies such as virtual and augmented reality, artificial intelligence, and data analytics enable retailers to personalise their recommendations, streamline checkouts and interact with customers in various ways.

Whilst technology also plays a crucial role in driving customer loyalty, retailers are also offering human-centred services such as concierge assistance, on-site repairs, valet parking, and personal styling for an enhanced shopping experience.

“These added touches of convenience and personalization can differentiate physical stores from online retailers, who may not be able to offer such services,” Deloitte said.

For example, the Japanese convenience store 7-Eleven held a trial for a new self-checkout system using holographic registers in selected Tokyo outlets.

Meanwhile, Alibaba Group implemented Hema, a high-tech supermarket chain as part of the company's “New Retail” strategy designed around customers’ smartphones, allowing them to place items in a digital shopping cart, receive product information, and pay.

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