Luxury retail chiefs link efficiency gains to technology investment

Luxury retailers believe increased investment in technology and communications will boost operational efficiency across the sector, new global research shows. Currently just one in four (26%) believe the sector achieves excellence in its levels of operational efficiency, according to the poll by technology firm Communications Specialist. It found that around 58% rate efficiency levels in the sector as good while 16% say it is merely average. However, the study with senior executives at luxury retailers with total annual turnover of $3.1 billion across the US, Asia, Africa, Europe and South America discovered plans to invest in technology and communications are expected to enhance the customer experience and efficiency in the sector. Around one in in four (24%) expect a dramatic improvement in efficiency over the next three years while 76% expect a slight improvement. Investment is likely to include the widespread adoption of technology such as mobile POS devices for sales staff to improve customer service and reduce waiting times in stores. The mobile POS technology allows staff to look up inventory, process returns and manage orders for store delivery, or delivery directly to people’s homes. Kevin Buchler, chief marketing officer at Communications Specialist, said:“Technology is transforming many industries and the luxury good and high-end retail sector is no different. “Increased spending on technology is widespread throughout the sector but it is paying off in terms of increased operational efficiency which is important for a sector which is achieving strong growth but is always under pressure to contain costs.”