How Data Analytics Is Driving Digital Transformation in Retail
The use of data analytics is powering digital transformation in retail, from supply chain and in-store inventory management to customer service and engagement. In this report, we offer key insights into the growing adoption of analytics by the retail sector:
- The use of analytics enables retailers to collect and analyze data on operations, supply chains and consumers, which informs strategic and operational decision-making.
- The adoption of analytics is considered a priority by the retail industry, with nearly 80% of retailers in Europe having already adopted advanced data analytics capabilities, according to a recent Coresight Research study. Data availability, technology and competition are encouraging further adoption of analytics in retail.
- Analytics is the building block of artificial intelligence (AI), the technology that enables retailers to advance digital transformation through price-optimization strategies and the rationalization of inventory, and to enhance communication and experiential retail, as described by Coresight Research’s CORE framework for AI in retail.
- Further adoption of data-intense technology—including AI, the Internet of Things (IoT) and 5G mobile connectivity—is expected to facilitate, and enhance the importance of, analytics in retail.