Retailers on the wrong side of the digital divide will need to close that gap sooner than later.
File image. Photo: RNZ / Nate McKinnon
Westpac's Retailing in New Zealand report has found digital technologies are disrupting retail supply chains, transforming operational processes, and revolutionising how products are marketed and sold.
"For retailers that ignore these changes, it may be business as usual for a while, but over time they are likely to lose ground to competitors that have transformed," the report said.
"With the possible exception of the corner dairy and sole trading specialist retailers, that's likely to mean a shift from single to multi- and eventually omnichannel retailing."
Westpac industry economist Paul Clark said New Zealand retailers were somewhat lagging and operating on a much smaller scale than competitors in other developed markets.
There were four things retailers needed do right to be successful, he said.
Retailers needed to become more sophisticated in using data and analytical tools in order to better understand their customer.
They also need to be where their customers were, which required the channelled retailing shift the report detailed.
"Thirdly, retailers also need to be able to sell the experience of shopping," he said.
That included repurposing of brick-and-mortar stores away from product distribution to becoming showrooms where consumers could test products before purchasing online.
Retailers also needed to improve their responsiveness to customer demands, which required improved operating efficiencies and supply chain networks, including the use of robotics, blockchain and the internet of things to improve the tracking and delivery of products, he said.