Tablets, smartphones redefining the retail shopping experience
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Tablets, smartphones redefining the retail shopping experience

More good news for Apple: tablets and smartphones are redefining the retail shopping experience and will be a US$5 billion market per year by 2015, according to a research study released today by analyst firm IHL Group (http://www.ihiservices.com).

According to the study, "Mobility: A Gutenberg Moment for Retail, A Threat to POS," the release of the Apple iPad and Amazon Kindle Fire have created price points and form factors for mobile devices that are finally allowing retailers to arm their associates with tools that will transform the in-store experience.

"The advent of mobile devices is a Gutenberg moment that is revolutionizing many aspects of the shopping experience," says Greg Buzek, president, IHL Group. "A complete transformation of the customer experience will occur at clothing and department stores over the next three years. Store personnel will be able to greet shoppers with their device, access purchase history, help customers accessorize, and even walk around as a personal shopper and check out the consumer -- all from the same device."

Another area where consumers will see more tablets is in table-service restaurants. Customers will be able to place their own orders on devices at the table as well as access games and other entertainment, and servers can use these devices as well instead of fixed POS terminals. This will lead to more efficient turnover; restaurants that have deployed mobile devices have seen a 25% increase in the number of times they can turn the table, thus serving more customers every shift.

Key findings from IHL's new study include:

° By 2015, over 2.7 million tablets a year will be shipped for use in North American retail and hospitality, an increase of 450%. Specialty retailers will deploy nearly half of all tablets shipped to retail.

° While many would suggest that lower-priced consumer devices will displace sales of rugged handhelds, this will not be the case; instead, this market will rise close to 30% over the next four years through more competitive offerings.

° Non‐rugged handhelds (mobile phones) will experience heavy growth over the next two years as well, with restaurants deploying nearly half of all such devices shipped to retail. These devices will experience heavy churn rates in the 2012–2015 timeframe, so the installed base will not grow as much as might otherwise be expected.

° Handhelds will have a dramatic impact on traditional POS [point-of-sale] shipments over time, reducing the growth of POS shipments by 11 percent in 2015 and in some segments as much as 20% from previously forecasted volumes. By 2015, annual shipments of mobile devices will be four times that of traditional POS terminals.

"The desire for the 'Apple Store experience' among retailers is being driven at the CEO level on down, and its momentum is undeniable," Buzek says. "For years, retailers have been looking for technology to both provide associates with more data on the products they are offering, and recognize and reward customers as they come through that door. Mobile devices are making this possible."

-- Dennis Sellers

 

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