THE INTEGRATION OF SMART TECHNOLOGY INTO THE RETAIL ENVIRONMENT

Abstract

Over the years, the global retail industry has gained a lot of attention from researchers and real estate professionals. One of the key challenges that retailers face is the changing consumer trends. Consumers are no longer visiting shopping malls for mere purchasing but for experiences that go well beyond traditional shopping. They are becoming less motivated to patronise malls due to the increasing homogeneity in the retail sector. The rising presence of e-commerce has also threatened the survival of brick-and-mortar retail stores. To overcome these retail challenges, the study attempts to identify the factors influencing the integration of Smart Technology into Singapore’s retail environment, in order to enhance shopping experiences. A research model, with a total of 24 consumer variables and 22 retailer variables, was formulated and analysed using the Exploratory Factor Analysis. The results revealed six consumer factors and five retailer factors that are dominant. Variables with high loadings under these factors were focused to determine the adoption of retail technology. The qualitative analysis also showed that the preferred choices of retail technologies are, the Barcode Scanners that provide product recommendations, and Virtual Reality devices. These retail technologies will help the shopping mall generate new retail vibes and drive patronage, allowing a shopping mall to differentiate itself from the homogenised retail cluster.