ManufacturingSeptember 25, 2018

Digitalization in Physical Retail

Consumer behavior is changing rapidly, so retailers need to identify their customers buying trends early.
Avatar Dr. Tobias Schulz
businessman working in a physical retail store

Customer behavior is changing rapidly. Experts say that every second physical retailer is expected to shut down within the next 15 years. It’s easy to see why: digital economy has changed the rules in supply and demand. Customers can now shop online from the comfort of their sofa, quickly compare prices via the Internet and receive packages right at the doorstep. It’s no surprise then that customer expectations have risen steadily, and with them, the complexity of the retail sector.

Customer loyalty is the decisive factor for physical retailers. But new shopping experiences offered by online retail are increasingly challenging traditional concepts, such as those of customer and brand loyalty. These days, existing strategies to gain and maintain customer loyalty may no longer be effective.

Instead of dreading digitalization, physical retailers can harness its potential to ensure their long-term survival. A solution tailored to the needs of this industry, such as DELMIA Quintiq, gives retailers the tools they need to achieve customer satisfaction and outstanding customer service. The DELMIA Quintiq solution helps offer customers the shopping experience they expect, while also providing the retailer with time- and cost-optimized processes. The solution can be linked to all existing systems, enabling real-time, integrated and flexible supply chain management. This ensures that customers always receive the right product at the right time, employees with the right skills are available at all times, the shop is well structured and the checkout area is efficiently organized.

The powerful combination of dynamic planning and advanced analytics allows retailers to rely on accurate forecasts and recognize customer trends at an early stage. Thus, they are always a step ahead.

However, success belongs only to retailers that consistently integrate processes and data – from procurement logistics to goods management to home delivery service. These companies can fully unlock the potential of a digital transformation, and ultimately thrive as retailers in the tough battlefield to win customer loyalty.


The retail industry must not hesitate any longer. Physical retailers in particular will need to act now, to secure a bright future.

Ready to optimally meet customer demand and achieve a bigger competitive advantage? It’s possible with intelligent planning of your logistics and workforce deployment. Gain the insights you need to get started by reading more on our software.

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