Retail tech in infancy, futurist says
Failing to keep up risky, those at Dallas gathering warned
DALLAS — Michio Kaku imagines a day when consumers literally make purchases with a blink of an eye.
“The Internet will be in your contact lenses,” Kaku said. “You’ll simply blink and you’ll be online.”
Kaku, a regarded theoretical physicist and futurist, provided a glimpse of what he envisions in the technologydriven future of retail during the first day of Shop. org’s Retail Digital Summit in Dallas. Kaku helped open the two- day event, which is held annually by the digital arm of the National Retail Federation, by participating in a question- and- answer session Tuesday centered on the future of technology and commerce along with comedian and podcast host Marc Maron.
While Internet- capable contact lenses for retail applications have not been developed, Kaku said it serves as an example of the digital capabilities that are possible as the retail landscape continues to shift dramatically because of technological advancements.
Kaku pointed to some of those developments — drones, artificial intelligence, 3- D printers and virtual and augmented reality — that are being developed with retail applications in mind. So, companies must be ready to meet the expectations of consumers.
“They’re all in their infancy,” Kaku said. “Now is the time to get in on the ground floor. You have to be like a surfer. You have to be able
to see the wave coming, get on the wave and then ride the wave to riches and fortunes.
“But, of course, timing is everything. You get on the wave too soon, there’s no wave. You get on the wave too late, you miss the boat.”
Being prepared for the future is at the core of the gathering, which the retail federation first held 15 years ago.
Matthew Shay, who is the federation’s chief executive officer, opened this week’s event by pointing out the conference’s beginnings came before the advent of mobile phones, apps or social networks. But Shay said today there is “universal recognition” by retailers of the value and untapped potential of digital applications.
There are 5,000 attendees taking notes at this year’s event, which also features an enormous exposition hall. The floor has more than 200 companies showcasing their latest retail ideas and innovations, including omni- channel solutions and virtual reality experiences.
“Everyone here has a passion for the future,” said Shelly Palmer, a technology expert and strategic adviser who guided reporters tour through some of the expo hall’s highlights Tuesday.
That passion doesn’t always translate to action for traditional bricks- and- mortar retailers, many of which have struggled to adapt as more consumers reach for their mobile phones to shop online.
Mike Amend, who is the executive vice president of omni- channel at Dallas- based J. C. Penney Co., said change is one of the most important topics in retail. But Amend also said the sheer reality is that many retailers simply don’t want to change or are unwilling to do so, unless they’re forced to by turmoil or disruption in the industry.
“We have long been wed to our traditions and typical practices, unwilling to reimagine how customers are researching and shopping especially in light of the technology revolution,” Amend said during a keynote speech Tuesday. “As retailers we have to have courage and foresight to enact change even despite oftentimes only modest variances in our businesses.”
Mindy Grossman, who is chief executive officer of multichannel retailer HSN Inc. and chairman of the National Retail Federation board, described the ultimate goal as “distributed commerce” with no boundaries. She said it will allow customers to purchase anything, anywhere and at any time.
Kaku said it’s vital that companies understand the technology that will make that goal possible, believing those who don’t “will go “bankrupt.” But he also stressed the technological advancements in digital retail won’t signal the end of brickandmortar stores.
While digitized, personalized and universal forms of commerce will continue to take hold, Kaku said we are the descendants of hunters and want to “feel things, touch things.” So companies who can provide consumers with more options by integrating the digital and physical experiences will be the ones who succeed in retail’s future.
“The people that can meld these two together are the ones that are going to be rich in the future,” Kaku said.