From floor sweeping to inventory management and data analytics, robots are becoming vital to retailers in an increasingly competitive industry. According to Coherent Market Insights, the retail robotics market will expand from $7 billion to $55 billion by 2028. However, even as large businesses like Walmart, Amazon, and Target incorporate robotics into their everyday operations, some retailers remain wary, citing concerns about job displacement and the loss of personality and human touch that consumers still seek in stores.
Profit protectors
One of the main reasons for the use of robotics in retail is the unrivaled efficiency and precision they provide. Robots can be designed to collect and analyze data in real time, completing jobs that would typically take people months to complete. These analytics play an essential role in inventory management, allowing for regularly filled shelves and ensuring customers can always locate their favorite products.
Out-of-stock items cost retailers around $453 billion per year and substantially reduce customer loyalty. According to a recent IPSOS study, “almost one in every five households with children changed where they buy groceries” owing to out-of-stock products.
Out-of-stock items are not the primary cause of earnings losses. Overstocking costs retailers an estimated $362 billion per year. According to McKinsey, “retailer inventories rose by $78 billion” in 2022, causing some retailers’ stock prices to decrease due to the inevitable reductions that would result from overstocking. Robots help shops maintain the delicate equilibrium of inventory, preventing financial losses and consumer discontent.
A collaborative approach
With workforce shortages prevalent across industries and robots proving to be practical and productive complements to workplaces, the debate over robots causing displacement has altered. Many people now understand that, in order to fully future-proof operations, the aim is not to replace humans with robots, but rather to have them operate as helpful assistants.
Many stores are progressively using robots to relieve staff of boring chores, which improves workplace safety and overall job happiness. Robots, for example, maintain inventory, clean floors, and deliver products in warehouses. According to Brain Corp data, the robot fleet will return over 2 million working hours to retail employees by 2023, covering 25 billion square feet of retail space autonomously (a 16% year-on-year increase). The smart use of automation frees up human workers to concentrate on more engaging activities, such as customer interaction, hence enhancing working conditions and generating positive employee experiences.
Customer Service Allies
Shoppers who like the social aspect of their brick-and-mortar purchasing experience are unlikely to see it disrupted by an all-robotic staff anytime soon. Retailers who are presently experiencing the most success with robot deployments often use them within their stores for non-direct customer-facing jobs such as cleaning, inventory scanning, and transportation. Robots are also making an impact behind the scenes in the online purchasing industry. For example, fashion retailer Zara is deploying robots to speed up its omnichannel purchasing system. Customers who utilize the store’s click-and-collect option may just input their collection code at an in-store checkpoint and an AI-powered robot will get their purchase, freeing them from lengthy wait times.
The use of robots for everyday tasks enhances the personal touch in retail. By automating boring duties, human employees have more time to communicate meaningfully with customers, resulting in a more personalized shopping experience and increased customer satisfaction.
Strategy for Success
Robotics integration in the retail sector exemplifies an innovative trend that is transforming industrial dynamics. Major retailers are investing more than ever before in automation for tasks such as inventory management, floor cleaning, and products delivery.
Rather than endangering jobs, robots are increasingly serving as helpful assistants, freeing human employees from boring tasks and allowing them to concentrate on more interesting activities, resulting in a significantly more cheerful work atmosphere. Embracing robotics is more than a technological advancement; it is a business need for merchants looking to flourish in an increasingly competitive retail world.