Specialty retailers are looking for ways to counter Amazon’s growing lead, and many are rethinking their technology approaches to better compete.
for example, Guitar CenterOn Tuesday (July 9), schedule of Adolfo RodriguezHe has held leadership positions at the following companies: IBM, Citrix and Advance Auto PartsExecutive Vice President and Chief Technology and Information Officer.
“Adolfo’s deep experience and strong ability to leverage emerging technologies will be an incredible asset as we navigate Guitar Center’s transformation,” said Guitar Center’s CEO. Gabe Dalporto “His expertise in retail’s core systems and processes combined with his passion for transforming the customer experience make him the perfect fit for Guitar Center,” the statement said.
The move comes as retail rival Sam Ashand all of that Shop Amazon continues to gain market share in this space, according to PYMNTS Intelligence research.Full Payroll Report: New consumer spending data shows Amazon far outperforming WalmartThe report breaks down Amazon’s market share in various categories: U.S. Census Bureau and Bureau of Economic Analysis The data shows that by 2023, Amazon will account for a 34% share of total consumer retail spending on sporting goods, hobbies, music and books, up from 20% in 2019, before the pandemic.
Amazon’s advantage lies primarily in its technology infrastructure. Its network of warehouses combined with its logistics algorithms increases the efficiency and speed of order fulfillment. Additionally, Amazon leverages its treasure trove of customer data to personalize product recommendations and target ads. The combination of these factors creates a convenient shopping experience for consumers that makes it difficult for traditional retailers to compete.
But specialty retailers aren’t going down without a fight. They’re capitalizing on their unique strengths — curated product assortment, brand expertise and focus on customer service — and enhancing them through strategic technology investments.
For example, a beauty retailer Sephora The company is investing heavily in artificial intelligence and augmented reality. Virtual Artist The tool allows customers to virtually try on makeup products using their smartphones, offering a personalized, interactive shopping experience that differentiates Sephora from Amazon’s more generic offerings.
Click-and-Mortar™ Benefits
To compete effectively with Amazon, specialty retailers are also focusing on strengthening their omnichannel strategies, integrating online and offline channels to provide a consistent shopping experience across all touchpoints. This approach helps specialty retailers differentiate themselves from Amazon. it is It has not caught on much in brick-and-mortar retail.
Many consumers are Click-and-Mortar™ shoppers. both According to a PYMNTS Intelligence study, both digital and brick-and-mortar2024 Global Digital Shopping Index: US EditionCreated in collaboration with Visa Approval SolutionsThe report, based on a survey of more than 2,400 U.S. consumers, found that one in five shoppers prefer to buy in-store with the help of digital technology, while 11% prefer to buy digitally and pick up in-store.
Retailers Home Depot To Dick’s Sporting Goods To Best Buy There is an increased focus on omnichannel experiences.
Andrew LaudatoChief Operating Officer Vitamin ShopHe told PYMNTS in April. Click and Mortar™ is transforming the retail experience for shoppers.
“More than half of our customers start their purchase digitally,” Laudato says. “Everybody starts with education and learning. … Some customers start in-store, because there’s a lot of expertise there. Then, once they understand exactly how they want to buy, they buy online. … It’s all omnichannel. Most of our customers’ shopping involves a digital element.”
As Amazon continues to set the standard in e-commerce, specialty retailers must innovate and adapt to stay competitive. By investing in advanced technology and strengthening their omnichannel strategies, these retailers can deliver a differentiated shopping experience that attracts and retains customers. While the battle with Amazon is far from over, specialty retailers are proving that with the right technology investments, they can carve out a successful niche in the competitive retail industry.
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