If you want to predict the future, who would you turn to?
A fortune-teller with a crystal ball? A soothsayer armed with star charts and the path of the moon? Maybe you could ask ChatGPT?
Or, you could speak to someone with bucket-loads of experience in retail who knows a thing or two about trends, how to spot them, and the impact they might have.
Luckily for you, this is exactly what we did.
Mark Thomson is the Retail Industry Director EMEA at Zebra Technologies – where he’s worked for 24 years - and his wisdom is a must-read for anyone in the industry. His role is multifaceted and revolves around acting as an advisor to retailers. He helps them navigate the vast landscape of technology solutions available today and guides them in understanding the specific challenges they’re facing. Often, he’ll bring together diverse teams from within a retailer’s business, creating space for meaningful discussions about their pain points and goals.
In this interview we delve into:
why understanding the fundamental customer journey is still the beating heart of retail
how generative AI is set to redefine shopping
why happy store associates make all the difference
So, whether you're curious about the future of connected stores, fascinated by the potential of AI, or looking for actionable advice to thrive in an increasingly competitive environment, this conversation has something for you.
Ready to dive in? Let’s explore the future of retail together.
24 years in any industry is a very long time. In retail, it’s an eternity. How’s the industry changed? And has it really changed, or do shoppers just want the same things they’ve always wanted?
You’re absolutely right in pointing out that the fundamentals of retail haven’t really changed, and I often bring this up in board-level discussions with retailers. While it’s easy to get caught up in the complexities of managing channels - whether it’s online, mobile apps, or social platforms like TikTok and Instagram - it’s important to step back and simplify the equation. At its core, retail is about one thing: customers want to buy products. Whether they’re browsing a website, scrolling through social media, or walking into a physical store, their end goal remains the same.
What has changed, however, are the variables surrounding that desire. Retailers still need to understand their customers - who they are, what they value, and how they behave - but the tools and channels available have expanded exponentially over the past two decades. Technology has empowered consumers with more choices and convenience than ever before, and retailers need to adapt to meet these evolving expectations. The underlying principle remains the same: getting the right product to the right customer, at the right place and time. That’s the constant.
Once retailers grasp this foundation, the next step is to continuously observe, monitor, and anticipate shifts in customer behavior. Who are you targeting? What products are you offering? How does your assortment align with their needs? Only after addressing these critical questions can we begin to explore how technology can enable the delivery of these outcomes more effectively.
Looking ahead to 2025, and recognizing the challenges of predicting trends, what key developments do you anticipate will shape the retail industry in the next 12 months?
It’s clear that the concept of intelligence in retail stores will take center stage. Whether people call it a "connected store," "smart store," or "future store," the terminology doesn’t matter as much as the direction. What matters is adopting a strategy and continuously refining it.
At the executive level, one of the most pressing questions retailers are asking their teams is, “What’s our AI strategy?” Artificial intelligence is already integrated into many aspects of retail, often without us even realizing it. From cameras conducting shopper and footfall analytics to demand forecasting and inventory management, AI is driving efficiency and enhancing customer and staff experiences.
A great example is how AI is simplifying routine processes. Take something as simple as identifying products at checkout. Instead of manually navigating through menus to find a specific type of apple, AI can recognize the fruit instantly. This seemingly small improvement saves time and reduces errors across thousands of transactions, enhancing customer satisfaction.
AI is clearly playing a growing role. What specific applications do you see as most impactful for retailers?
One major area is customer interaction. Generative AI tools, like Amazon’s "Rufus," are already transforming how consumers search for products. Rufus allows users to ask natural language questions about products and receive detailed, tailored responses. While it’s still in its early stages in some markets, the potential is enormous.
On the operational side, AI can be a game-changer for store associates. Imagine a staff member asking, “What’s my next task?” The AI, equipped with data from across the business, could prioritize activities based on real-time needs. For example, it might know a delivery truck is arriving in 10 minutes, so it assigns unloading as a priority. By orchestrating tasks in this way, AI shaves minutes off processes, boosting efficiency.
Voice assistants could also be revolutionary. Instead of typing a query into a system, staff could ask a voice-enabled device questions like, “Do we have any this in a medium?” and receive instant, contextually accurate responses, even in their preferred language. This not only streamlines operations but also empowers associates to better assist customers.
What other trends or challenges do you see shaping retail’s immediate future?
The intersection of automation and mobility will continue to dominate. Retailers face increasing labor shortages, rising costs, and lengthy training times for new hires. Technology can alleviate these pressures by automating repetitive tasks and providing staff with intuitive tools that make onboarding faster and operations smoother.
AI will also help address challenges like shrinkage and productivity. For example, automated monitoring systems can reduce theft while task automation boosts efficiency. These advancements won’t eliminate the need for skilled staff but will enable teams to focus on delivering excellent customer experiences.
Finally, sustainability will play a bigger role. Retailers need to align their strategies with growing consumer demand for environmentally friendly practices. AI and connected technologies can help monitor and optimize operations to reduce waste and energy consumption, further appealing to eco-conscious shoppers.
If you had to summarize what the best retail technology should achieve, what would you say?
At its core, retail technology should create a better experience for both customers and staff. For customers, it’s about removing friction - whether that’s simplifying checkout, ensuring products are in stock, or delivering personalized recommendations. For staff, it’s about empowerment - giving them the tools to work smarter and more confidently.
When technology serves these dual purposes, retailers can overcome challenges, adapt to changing conditions, and continue to thrive in a competitive landscape.
If we look at this in more depth, when I’m working with retailers, the first step is to deeply understand their customers and the journeys they’re trying to create. This means looking closely at how customers interact with the brand across all touchpoints and identifying opportunities to enhance these interactions.
But the customer journey isn’t the only one that matters. The staff journey is equally critical. Store associates are the face of the business, the frontline workers who interact with customers every day. Ensuring their journey is seamless - giving them the tools, training, and clarity they need - is essential. When staff are well-supported, they’re more confident, efficient, and happy in their roles, which directly translates to better service and happier customers.
It’s important to recognize that these two journeys - customer and staff - are deeply interconnected. Happy, empowered staff lead to better customer experiences, and vice versa. But they’re only part of the equation. The third element to focus on is the operational backbone: the product journey. This includes everything from planning and merchandising to inventory management and ensuring visibility of stock on shelves.
By focusing on these three pillars - customer experience, staff experience, and operational efficiency - retailers can create a symbiotic ecosystem where all elements support each other. The key is to optimize each area while ensuring they work together harmoniously.
One common misstep is over-investing in grandiose store redesigns or flashy, surface-level changes without addressing the foundational elements. While these initiatives might seem appealing, they can be incredibly costly and often fail to deliver meaningful ROI. Instead, the focus should be on strategic, targeted improvements that drive tangible results.
In summary, retail success isn’t about chasing the latest trend or making sweeping aesthetic changes. It’s about understanding and optimizing the journeys of your customers, your staff, and your operations - and using tech to ensure all three work together to create a business that thrives.
And finally, what excites you most about the future of retail and where the industry is heading?
Automation and AI are the most exciting developments for me. Generative AI, though relatively new - having really gained traction only in the past year - has already become a focal point for innovation. Yes, it’s become something of a buzzword, but that’s because its potential is truly transformative.
That said, there are challenges to navigate. AI systems are only as good as the data they’re trained on. As we were often reminded in school: "Garbage in, garbage out." For retailers, this means ensuring the data they feed into AI systems is clean, accurate, and well-organized. Without proper oversight, tools that should be game-changing could end up delivering incorrect or misleading results. This emphasizes the need for teams dedicated to training and maintaining AI systems to ensure they meet business needs effectively.
From a customer experience perspective, the possibilities of AI are thrilling. Imagine a retail experience as seamless and tailored as booking a vacation online. Think about how platforms like Trivago or Kayak allow you to filter hotels by location, price, amenities, and reviews - then apply that concept to shopping. AI could allow you to specify your exact needs, such as finding the perfect air fryer for a household of two, and instantly narrow down options to the best match. Add to that real-time convenience: the AI could tell you which store has it in stock, whether it can be delivered tomorrow, or even whether there’s an associate available to assist you in-store.
This blend of best price and best convenience will redefine the customer journey. It’s all about removing friction and empowering shoppers to get what they want, how they want it, and when they need it. Retailers that embrace this shift and continually adapt will thrive. Those that don’t may face the unfortunate reality of falling behind or even disappearing altogether.
In essence, the future of retail lies in staying dynamic. Technology like AI won’t just shape customer expectations - it will raise the bar. Retailers must keep investing, tweaking, and evolving to meet those expectations. That’s what excites me most: the constant challenge and opportunity to innovate and redefine what’s possible in retail.
But as much as technology excites me, it’s the human side of retail that inspires me the most. Retail is, at its core, about people. It’s about creating environments where customers feel welcomed, understood, and valued. It’s about empowering store associates to do what they do best: provide exceptional service with a personal touch. When technology and human engagement intersect seamlessly, it creates magic - shopping experiences that are not only efficient but also enjoyable and memorable.
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