By Vishal Kapil, Chief Information Officer, GMG
In the fast-paced world of retail, the ability to scale IT assets & platforms is becoming increasingly crucial.
Scalability isn’t just a matter of expanding technical capabilities; it’s about ensuring that the entire value
chain is equipped to handle growth seamlessly.
To set the context, consider an e-commerce fashion website. The performance of such a platform is integral
to its success, as it needs to handle millions of page views while maintaining user-friendliness and user
experience. This involves addressing core business processes and underlying technology architecture to
work seamlessly without failing, as this is crucial for conversion.
Global retailers like GMG, who are rapidly expanding, will have multiple technology platforms to think
about when handling core and complementary capabilities. The scope is larger and requires scalable tech
capabilities that involve understanding both the volumetric considerations of the current market, customer
expectations and ensuring the adaptability of core infrastructure. This includes assessing how easily a
company can integrate or build another system while entering new markets or introducing new products.
In such cases, adapting to local laws and tax regulations, ensuring consumer protection, and data privacy is
essential. The payoff for retailers is evident in increased consumer acquisition, revenue uplift, and
efficiency gains in terms of cost and time.
We have experienced firsthand how critical an adaptable infrastructure is. GMG recently acquired aswaaq
and regional operations of some of Groupe Casino brands. Both had prominent retail chains operating in
the UAE, and my team managed to integrate them seamlessly into its existing portfolio. Moreover, GMG’s
Asian operations are expanding at an incredible rate, and by leveraging scalable infrastructure, the company
has maintained operational efficiency, customer satisfaction, and brand identity across a growing network
of stores in diverse markets.
Scalability also lends itself to the cyclical nature of retail. In the UAE, sales spike around the Dubai
Shopping Festival (DSF), Ramadan, Eid and National Day holidays. A scalable infrastructure should be
able to handle these periodic spikes with no impact on operations while dialing down in slower months to
optimize the use of tech infrastructure. The resulting efficiency gains foster a more agile and competitive
retail landscape. RFID (Radio Frequency Identification) helps supply chains inventory accuracy, contactless payments, relevant promotions, and near real-time inventory visibility, enhance the overall shopping experience, ensuring it is frictionless and satisfying.
Scalable technology platforms are emerging as a foundational pillar in the digital transformation of retail.
This transformation occurs through customer and employee-facing use cases, driven by the increasing trend
of connected commerce in businesses. While improving internal processes is critical, an effective digital
transformation strategy involves key customer use cases that have clear success KPIs on performance and
revolve around continuous improvements, creating broad ecosystems with relevant suppliers, the right
selection of technology & its partners, and other stakeholders. Such a comprehensive DX model supports
the seamless onboarding of B2B partners, managing pre-sales, sales, and post-sales transactions seamlessly.
Adapting AI for Efficiency
Retail is among the sectors that benefit immensely from the AI revolution, thanks to the mass of structured
and unstructured data collected in daily operations. Point-of-sale data, inventory data, CRM data, customer
reviews, social media posts, and more are being leveraged for various purposes in retail, such as customer
analytics, inventory management, offers, and price optimization.
Chatbots have been part of the customers’ experience for the past decade; the latest advances in AI are
supercharging these agents. We know that customers prefer self-help customer service as it gives them
more control, convenience, and satisfaction while reducing wait times and allowing them to find answers
anytime. Retailers leveraging AI are delivering an elevated customer experience at lower costs while in
retail building scale.
Consolidating technologies and personnel enables accessible communication and collaboration among IT
staff, enhancing productivity, innovation, and engagement. Additionally, integrated IT platforms that
centrally store and organize information, data, files, and other assets allow easy access to key functions and
tools. In GMG’s case, investment in a digital capability hub in India allows us to tap into a large pool of
talent and expertise in digital technologies, such as artificial intelligence, cloud computing, and data
analytics, which can help us enhance our operations and customer experience. This strategic move further
enhances our competitive edge, scalability, and global presence.
There’s, however, a caveat in any digital transformation journey. As retailers expand and embrace digital
transformation, ensuring data privacy becomes paramount. Safeguarding consumer trust through robust
data protection measures is not only a legal requirement but also a key component of maintaining a positive
brand image. Retailers who earn customers’ trust for protecting and safeguarding their data from
cybercriminals are rewarded with loyal, lifelong customers.
The ultimate goal of technology in retail is to elevate the customer experience by leveraging innovative
tools and solutions to enhance various aspects of the shopping journey in a competitive market. Through
these technological advancements, retailers aim to create an environment where customers enjoy a
convenient, engaging shopping experience, leading to lasting customer relationships, brand loyalty, and
business growth in a highly competitive market. In conclusion, the ability to adapt, innovate, and leverage
technology builds retailers’ competitive edge for sustained success in an ever-evolving market & customer
behaviour.