Study: Retailers transform distribution, expand online, turning to the cloud to revolutionize customer experience
Part of the retail digital evolution includes a massive transformation of distribution centers.
As retailers race to deliver more unique and personalized customer experiences, the use of cloud, Internet of Things (IoT) and Big Data will accelerate in stores, online channels and distribution centers. However, one quarter of retailers still lag in the process of adopting new technologies and integrating them across operations to present a more integrated customer experience, according to a new report from Vertiv, Columbus, Ohio.
For the report, participants included executives from 50 large retailers, with a combined annual revenue of $953 billion in 2017. The study, “Into Uncharted Territory: Retail Transformation and its Impact on Digital Infrastructure”, co-sponsored by Vertiv and DatacenterDynamics, UK, revealed a heightened focus on online retail, as businesses transform their digital resources and capabilities to address changes in customer behavior. Over the next two years, the amount of data center space dedicated to online retail – both on-premise and co-location – is expected to increase by 20%, while cloud hosting would increase by 33% to support store applications.