Tony D'Onofrio
Retail
The 105th USA National Retail Federation (NRF) and EXPO delivered more than 33,500 attendees, hundreds of educational sessions, miles of exhibits, and some technologies that boggled the mind. I would describe the event as a cornucopia of digital innovation.
The NINE retail disruption takeaways from NRF 2016 include:
The Robots Are Here
In a recent post, we introduced OSHbot deployed at Lowe's and Tally from a San Francisco startup. At NRF 2016, I had the pleasure of meeting Pepper, a friendly and smart retail focused robot assistant (photo).
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2016 Retail Innovation Predictions
In Part 1, we discussed the following 2016 retail technology headlines:
In Part 2, we will focus on branding the future of retail, venture into the internet of things, and do some micro shopping of the target consumer. Can you believe that in 2016, we will still go to stores to shop? Finally, in the spirit of the new Disney Star Wars movie blockbuster, we will discuss whether the "force" is still with the retail industry.
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2016 Retail Innovation Predictions
It's that time of year when once again we reflect on the retail industry's progress as it transitions forward to new horizons. Disruptive change continues with online sales being an even bigger influence on the just completed holiday season. New technologies continue to transform the vibrant retail industry.
The retail robots are coming and if you look close there goes another drone. Is it time to omnichannel or die? Why don't you just analyze this? Is the 'smart store' finally here?
In part 1, we envision five of the top ten retail technology headlines that will be popular in 2016.
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Top 12 Insights from the 2015 Global Theft Barometer
The just published Global Retail Theft Barometer (GRTB) is an annual study of the losses from merchandise shrinkage in the global retail industry. The research
for the 2015 edition was conducted by the Smart Cube and Ernie Deyle and it was commissioned by Checkpoint Systems. 203 retailers in four regions, covering 24 countries contributed data for the latest report.
1. Global Retail Shrink
Retail shrink in the countries surveyed was estimated at $123.4 billion or on average 1.23% of retail sales. "Shrinkage has been observed to increase in most of the reviewed countries and by 0.48 pps globally. In the 16 countries where like-for-like analysis was possible, shrinkage increased in 10 and decreased in 6."
2. Global Regional Retail Shrinkage
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The USA National Retail Federation (NRF) recently published the 11th annual Organized Retail Crime (ORC) survey. The latest data indicates that almost 97% of 
all the surveyed retailers have been a victim of ORC in the last 12 months.
2015 Summary of Key ORC Findings
97% is the highest percentage of retailers impacted during the last five years. This year 48.5% of retailers have experienced a significant increase in ORC activity. The average loss was $453,940 - or a median of $194,340 - per $1 billion in annual sales volume. Leading physical 'fence' locations are pawn shops, stores, swap meets, or flea markets. Nearly 60% of retailers have identified or recovered merchandise from these locations. Online auction sites and classified sites were the leading 'e-fencing' locations. Nearly 69% of retailers have identified or recovered merchandise from e-locations. Two thirds of retailers have encountered issues with merchandise credit or gift cards in the last year. Nearly 55% of retailers found merchandise credit or gift cards on websites.- Details
The Top 5 Retail Self-Service Technologies
Thank you for calling the Twinge Airlines telephone customer service line. Please choose from one of the following 25 options. For sales, press 1, for billing press 2.....to reach a representative press 25....We are experiencing a high volume of calls at this point in time. Your wait to speak to a representative might be months. Please go to our website and use the friendly self-help database which we are sure will not answer your question..... Annoying music.....All representative are still assisting other customers....You must not have a life, if you are still waiting. Please hang up and call someone else to get the answer.
Welcome to the Future of Self-Service Technology
A grueling airline issue this week led to the question, are we happy with the growing global customer service trend of speaking primarily with computers?
According to a just issued MIT Sloan study, there are substantial differences between management and actual customer perspectives on new self-service technologies:
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In a recent post, we analyzed "The $1.2 Trillion Internet of Things Retail Opportunity". As McKinsey pointed out, "retail environments 
have undergone significant change over the past two decades due to the introduction of information technologies, including the rise of online shopping. The Internet of Things has the potential to cause even greater disruption, but IoT can also provide traditional retailers with the tools to compete - and coexist - with the online retail world as onmichannel shopping erases the distinction between online and offline shops."
For the retail industry, this seems to be the time to discuss trillion dollar opportunities. Order Dynamics just issued an IHL Group study titled "Retailers and the Ghost Economy: $1.75 Trillion Reasons to be Afraid." This week we will look at the $1.75 Trillion worldwide retail missed opportunities from overstocks, out-of-stocks and sales returns.
Total Cost Equates to Increasing Same Store Sales by 11.7%
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Emerging Technologies from a Shopper Point of View
This month, First Insight published an interesting study on the evolving in-store technology customer experience and the mindset of the modern consumer.
Following are some surprising shopper insights on the use of technology in retail stores.
Emerging Technologies Challenges
Virtual dressing rooms (where you can see how clothes will look on you without actually trying them on) may be coming to more stores soon. However, when consumers were asked if they would prefer a traditional dressing room versus a virtual dressing room, nearly 60% of respondents preferred a traditional dressing room.
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What's "HOT" in Retail Loss Prevention Technologies?
A recent IHL Group research study titled "The Great Disconnect Between LP and IT" summarized that "traditional LP Technologies are (now) being co-opted for
use in other activities leading to influencers of buying decisions that would otherwise be purview of LP only." The convergence of Loss Prevention and Information Technologies has been underway for some time. The pace of change is increasing and further innovative disruption will arrive from unexpected market segments.
"The Great Disconnect Between LP and IT" Key Insights
The data protection aspects of loss prevention dominate LP initiatives. The top five focus areas where retailers spend LP efforts are PCI, data breach, employee theft, returns fraud, and consumer theft. PCI and data breach account for 35% of the focus. Data breach spending is tied with employee theft at 14%. Returns fraud and consumer theft each represent 12% of the overall retailers LP spend focus.
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In the recently published McKinsey study "The Internet of Things (IoT): Mapping the Value Beyond the Hype", the retail industry is ranked fourth in highest potential next decade IoT economic impact.
McKinsey defines the retail environment broadly "as physical spaces where consumers engage in commerce—considering or purchasing goods or services. This includes traditional stores, such as department stores and grocery stores, as well as showrooms where goods are on display but not available for sale. It also includes physical spaces where services are purchased, such as bank branches, theaters, and sports arenas. The analysis covers only physical environments where IoT technologies can be deployed, not online retailing."
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Harvard Business Review
It is a Small World
"To succeed in life, you need three things: a wishbone, a backbone and a funnybone." – Reba McEntire
Continuing our global journey to learn something new, our next stop is the Trevi Fountain in Rome. The name "Trevi" comes from the Italian words tre, meaning "three", and vie, meaning "roads". The fountain is located where three roads meet.
A fountain has been located at the Trevi Fountain site for over 2,000 years. The current fountain was designed by Nicola Salvi and built between 1732 and 1762. It's the largest Baroque fountain in Rome.
The Trevi Fountain's water comes from the Acqua Virgo aqueduct, the only functioning aqueduct from ancient Rome. Local lore says that throwing a coin into the fountain will ensure you return to Rome. Other lore says that throwing two coins will lead to love, and throwing three coins will lead to marriage.
Wishes aside, since 2006, a Roman Catholic charity called Caritas has collected the roughly €3,000 a day thrown into the fountain and used it to provide food and social programs worldwide.
Life is one sweet ride. Time flies way too fast. Take a moment. Sit at your favorite place. Imagine the history before you. Live each moment as it was your last. One day, it will be.
Categories
Brilliant Research
Unlocking Shopper Reactions to Secured Products
60% of shoppers report seeing locked-up merchandise on a regular basis. More than a quarter of shoppers say a retailer loses their purchase when items are locked up. 62% of shoppers say they typically wait for assistance when they encounter locked up merchandise, and 9% say they order the item online from that same retailer. - From Numerator.com Read more
Smart Infographic
Retail Media: An Evolving Growth Opportunity that Won't Wait
Retail media is still surging. Ad spending with US retailers is growing 9X faster than traditional point-of-sale shopper marketing. - From Bain & Company
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