Impact of Developing Technology on the Retail Industry

The need for shops is increasingly becoming obsolete with the changing technological trends. Online systems have led to the creation of virtual shops that are slowly replacing conventional shopping centers. This trend is expected to increase with the future predicting a possible phase off for shops. This revolution has been experienced in several sectors, Apple was one of the corporations that championed this paradigm shift through online marketing and the use of its applications. Many record shops have been closed in the near past because of the changing patterns in buying of movies and music as initiated by Apple. Purchase of music online has become so prevalent not only in the United States and in Canada but in other countries including the underdeveloped countries. This trend is gaining popularity in the sale of books, Amazon, eBay among others continue to expand for the convenience and efficiency that they give to their customers.Competition has enhanced advancement across retail markets worldwide. Technology has been the central focus of many retail outlets. Despite the fact that most of the retailers are still on profit, their margins continue to decline. This has prompted a game-changer that has helped them keep ahead of the competition. Home Depot, a company that deals with selling household items have been able to adopt technological changes. The company developed a mobile application that not only did it enhance the customer experience but also facilitated the associates in taking inventory. The company and its customers have received this strategy with a lot of optimism. Competitiveness has also facilitated research in strategies that are predicted to enhance sales as well as increase the customer base. The pressure from the competition will force the optimization of the supply chain in order to provide a better customer experience as well as remain on a profit-making trend. The number of physical stores is expected to dramatically reduce. The so-called ‘brick and mortar’ establishments are likely to remain but technological change has to be coupled with the change. However, the change will come with a drastic reduction in these outlets. Another phenomenon expected to be coupled with the reduction in the number of stores is the reduction in their sizes. The main reason for this is the increased business online capable of enhancing the decisions to lease, facilitating merchandising plans and transforming the physical layout. With the reduction of the physical locations and the size of the premises, diversification is of great essence (Sohl, 2012). The retail market can divert its activities online as well as diversifying to the other areas of the product supply chain. In addition, they can result in offering services. Technology will facilitate the retailers to refocus on customer loyalty while enhancing closeness with the customers. Loyal customers will keep on buying fro the same retailer irrespective of the change. However, in order to facilitate their shopping experience, it is obligatory that they keep abreast with the change, even loyal customers deserve quality and efficient services. Despite being top on the retail of household items, Home Depot developed a mobile application that facilitated the customers in finding the exact location of goods in the store.