INTERNATIONAL. Retail Cities is a global data and insight firm that focuses on high-growth markets and industries. Ray Gaul, the CEO and co-founder of Retail Cities, discusses how the industry's unique advantages as an innovator could allow it to rise in the new era cashierless retail.While travel retail has always had some similarities to general retail in many dimensions, there are three main differences that shopper mindsets have. As cashierless retail solutions explode in travel hubs, it will be important that you remember these differences.How can we ensure that humans are at center of all retail interactions without requiring shoppers to interact with staff?These are the key differences:Willingness and ability to spend. Retailers of travel know that customers often leave home with extra money to spend on gifts. This can be used to say, "What a great trip!" or "Thank you!"Travel retailers know that customers often leave home with extra money to spend on gifts. They might say, "What a great trip!" or "Thank you!" Travel retailers can be sure that they have their customers' full attention, regardless of how brief, by offering waiting rooms, assigned seating and other amenities. They know that they can start to interest customers before any scheduled trip.Travel retailers can be sure that they have their customers' undivided attention, regardless of how brief, by offering waiting lounges and assigned seating. They know that they can start to interest customers before any scheduled trip. Moments of crisis. Retailers of travel know that customers will forget to pack, lose or find something on the journey.The position of travel retail as an innovator leaderThese differences have resulted in travel retail being a step ahead general retail in innovation. The innovation leader in retail shopping has been travel retail.The purchase path in retail has been a straight line. It was impossible and rare to shop in other ways.Step 1: Leave your home and choose which store you want to go.Step 2: Leave your home and choose which store you want to visit. Step 2: Look closely at the items, categories, and departments. To compare other stores and make your final decision about where to purchase,You can take a closer look at certain departments, categories, and items. To make comparisons and final decisions on where to purchase, visit other stores. Step 3: Return to the store to purchase your item(s), and then transport them to your home/office/other.This linear model has been disrupted by the digital age, which has led to disruptive retail models. Start-ups that sell beauty-in-a box solutions can now ship products directly to consumers (Step 3); they can then look at each item more closely (Step 2); the consumer can then decide whether to go to stores to test different styles/pack sizes (Step 1).Digital technology has allowed for a multitude of combinations, in various sequences. These are known by many names, including showrooming and norooming as well as webrooming and autorooming. Many times, travel retail has been the first to be a leader in the wider industry.Leadership has many benefitsThese changes have been advantageous to travel retail, who has two advantages. First, travel retail is not restricted by the same linear structure as general retail. Since the beginning of intercontinental civil flights, airlines have offered services that allow customers to shop in advance and pick up at their destination.Second, the heart of retails testing and learning is often found at airports, train stations and ferry terminals. These are the places where technology companies, retailers, and governments come together to create future societies. These are great testing grounds for innovative ideas that require the integration of technology, government and retail.As a result, travel retail has been often more attractive, more fun, and more futuristic over general retail in the last two decades. This can be continued after 18 months of austerity and restrictions on certain types personal interactions between travellers and retail salespeople, as well as other challenges.What happens to leadership?The contactless retail segment of digital retail is one exception to the leadership in travel retail. As an online-to-offline solution, cashierless stores were first scaled. Contactless was first introduced in Asia by Alibaba and Happy Hippo, as well as the startup player T11 from China. In 2016, Amazon Go followed suit in the USA. It did not arrive in Europe until 2021, with the launch of Amazon Fresh in London in January and Rewes Pick & Go in Cologne in May.Cashierless is now selling wholesale at airports and train stations. Hudson, USA recently partnered up with Amazon to offer Just Walk Out travel shops in North American hubs. Others are following closely. There will be a flurry of new cashierless retail solutions from travel retailers, especially in the convenience segment of retail travel.In conjunction with the push for socially-distanced and contactless experiences to be created by pandemics, retail zones at airports and tourist destinations could soon become service environments from afar.Travel retailers lack the team structures, stores or budgets necessary to be leaders in cashierless retail. Tesco, Britain's largest supermarket chain, has just opened its second cashierless shop.Tesco will continue to have greater technology investments than other leading duty-free retailers like Dufry and DFS, China Duty Free Group, Lotte, and others. Is this a sign that the travel retail industry will lose its innovation as a source for future inspiration as more people switch to cashierless shopping?What has humanity gained?Wait, just a second. Many adventurers, businesspeople, and tourists claim that the best thing about their travels is the opportunity to interact with locals. Retail is often the first line in such interactions. This presents a dilemma for retailers, strategists, as well as their workforce. How can we invent to make travel retail more convenient and sanitary, while still delivering experiences that ensure visitors return and promote each destination.Travel retailers have five major advantages over other retailers, despite the obvious disadvantages of scale when it comes to building tech solutions.Willingness and willingness to try new things. As we said, travel shoppers are willing to spend more. They know they'll try something new. It makes it easier for travel retailers to change shoppers from old habits to new ones. There is less hurry. We also suggested that travelers shoppers will have moments when they are aware they will be required to wait for their pick-up. These opportunities are not available to general retailers. These opportunities are only available in moments of crisis. Travel shoppers may also be cut off from what they need due to forgetfulness, carelessness, emergency, or other reasons. These moments may not be ideal for digital solutions, but they can make a lasting impression on shoppers if they are. Partnership between the government. As we recover from the pandemic, governments will continue to invest in travel hubs. This allows travel retailers to have a voice and a platform that allows them to provide assistance instead of doing it all themselves. Technology hubs. Last but not least, governments encourage IT and tech giants build technology hubs at airports and train stations, rather than out of town or in a remote server farm. It is important to not overlook the closeness between travel retail and IT/tech incubators.Travel retailers will continue to have their competitive advantages if they keep in mind the human connections that they have with consumers, government officials, and technology partners. If they remain focused on the use of retail technologies to address different customer needs than general retail, travel retailers will be able to continue their leadership role in the next phase.Prepare for the next stepThis is a call to all travel consultants, brands and travel retailers to create a three-step vision of the future cashierless retail in travel hubs. Answer these questions. This is a great time to do it, given the current stage of cashierless travel development.Cashierless technology will allow us to better understand the needs of shoppers. How can we ensure that humans are central to all retail interactions without requiring shoppers to interact with staff? Does this mean new staff, training, or different roles? How can we restore our natural leadership position in innovation through partnering with technology providers and governments in the right places at right times?Notice: You can comment on this article using the Disqus platform or our LinkedIn page.Ray Gaul will present The Contactless Paradox of Travel Retail at the Octobers Virtual Travel Retail Expo 2021, building on the theme discussed in this article.Get in touch with us:Web: http://www.retailcities.com/Email: Ray.Gaul@retailcities.com
