An IDC infographic sponsored by SAP

How Retail Analytics

Is Shaping
Retail’s Future
Everything Is Changing in Retail
In the next 2 years:

40%
of digital transformation
30%
of major retailers will
initiatives will be supported adopt a retail
by cognitive/AI omnichannel commerce
capabilities, providing platform, integrating a
critical on-time insights for data analytics layer for
new operating and centrally orchestrating
monetization models omnichannel capabilities

AI will become pervasive across customer journeys,

supply networks, merchandising, marketing and commerce,
providing better insights for optimized retail execution

Improving KPIs like

speed of delivery,
margin targets, and
Improving
sales target by
productivity
10–20%
by 30%

Digital Transformation Motivates

Retailers to Apply Advanced Analytics

38%
of retailers are building and

49%
deploying cognitive systems
across the organization, moving
toward a more mature phase
of retailers are using analytics
to improve customer analysis
for hyper-personalized
engagement across the
customer journey
66%
of retailers are using
analytics to generate new
insights for new
revenue-generating services

Source: IDC Global IoT Decision Maker Survey 2016, Retail respondents

es:
Analytics Use Cas
ch: The North Face
Q&A discovery sear
chers, shoes.com
Visual search: Sket
dation: Icebreaker
Product recommen
ization: Evisu
Omni-channel optim
aples
s: Macy’s, Target, St
Shopping Assistant rs, others
Burberry, 1-800-flowe
Chat Bots: Sephora,

… Because Analytics Are a

Foundation for Retail Profits
Changing fulfillment Adopting new
models integrated
30% of savings with the planning and
introduction of ship-from- analytics platform
store option
20% improvement in
stock turns

Delivering
omnichannel
analytics for hyper
micro-personalization Driving
transformational
50% decrease in returns cost improvements
through omnichannel- across the
approach
supply chain
32% increase in 20-30% decrease in
conversion rates surplus stock

65% increase in repeat 40% increase in

purchase Sources: IDC research, company annual reports, public cases forecast accuracy

Analytics Will Support Retailers

Becoming Technology Companies
Under Armour is moving from sports clothing
to fitness technology, high-performance
apparel and new customer experiences

"We are growing our analytics capabilities and moving from backward-looking
reporting to predictive and prescriptive analytics which allow us to establish and
drive growth in a more meaningful way" – Kevin Plank, Under Armour CEO

$710M investments in health tracking

mobile apps acquisition

190M 190M registered users on its

connected fitness platform

IDC Recommends
Use integrated retail planning & analytics for
micro-merchandising strategies that are centered on
customer experience strategies
Improve workforce performance and usability with
embedded integration of artificial intelligence in retail
processes and applications
Accelerate artificial intelligence pilots and incorporate new
capabilities with a foundational design approach

For more on how analytics is transforming Retail business, download

the IDC Analyst Connection paper, Why Retail Analytics Are a
Foundation for Retail Profits, sponsored by SAP.

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permission and in no way does the use or publication of IDC research indicate IDC's
endorsement of SAP’s products/or strategies.