Transformation means the process of completely changing something. Transformation of conventional stores includes the use of digital tools to strengthen and evolve the business. This helps to increase efficiency and gain competitive advantage. Transformation of conventional stores means changes in:

POS (point of sale)

Conventional stores only accept cash regardless how big or small the total bill amount is. But now more and more stores are incorporating the use of POS machine which allows the buyer to pay via card by swiping it in the machine or scanning it. In China everyone has a mobile application WeChat which allows them to do payment via the WeChat Pay/Wallet. The users of this application can pay via QuickPay, QR Code, in-app (web-based) or native in-app payments.

Self-Service

This concepts states that the customer should be able to do everything from the start to the end of purchase without any interruption of the salesperson/cashier etc.

For example;

o   ATMs.

o   Self-ticket purchasing on internet for exhibitions, cinema, concerts, food events etc.

o   Self-pumping gas stations.

o   Self-check-out at hotels.

o   Self-ordering technologies in restaurants.

Omni-Channel Retail

Omni-channel retail means when a business expands and diversifies their way of retail. They are not only present offline but online. The customer can contact and communicate in store, on a call, via message, by commenting on post etc. This allows the customer and retailer to have a seamless communication. Omni-channel permits personalization.

Guided Selling

This involves recommending and suggesting customers products on the basis of their preferences. It makes the customer feel special as it is personalized based on their likes and dislikes.

For example;

o   When buying food online or accessories like ring, the software asks you what your ring size is, what kind of metal you like, what is the length of your fingers etc. and in case of food it would ask if you like meat or seafood, protein, or carbs, fried or steamed, spicy or mild etc.

o   Netflix suggestions on the basis of movies or seasons you have already seen. The software matches the genre and actors and suggests similar movies and seasons.

o   Amazon, Daraz and other E-commerce sites recommend products when the customer adds something in their cart. Even when the customer is looking through a product in the end it says people who bought this also ordered this.

Digital Signage

These are the LED screen displays which are usually used for the self-serve purpose in restaurants and sometimes used to show videos, directions, marketing messages, and digital images. Instead of spending money again and again on banners, brochures, and stickers every time a new advertisement is made, electronic signage is a one-time investment.

Retail Analytics

These analytics provides the retailer information about the supply chain, inventory level, demand of customer, sales etc. Using this the retailer can make crucial decisions on;

o   What to order?

o   How much to order?

o   Which product is to be discontinued?

o   How much to spend on marketing?

o   The behaviour of the consumer.

o   New strategies to make and implement.

o   Changes in logistics.

o   Hiring or firing of employees.

Checkouts at Grocery Stores

Customers have to wait in long ques at the check-out, and when it is their turn it takes forever to scan all the products then bag them. Amazon has introduced RFID scanner, which is a machine vision system, and it identifies all the items the customer has in his cart/bag and automatically charges the credits card of the customer against the price of those items.

Expanding from Physical to Online or Vice Versa

Many stores that were online especially the businesses owned by entrepreneurs, have now started to open stores.

For example;

o   Bakery shops (layers bakershop).

o   Cosmetics shops (vegas.pk in E11, makeupcity has branches across Pakistan).

o   Amazon.

o   YouTube (creator store).

Similarly, many stores who only had physical existence have entered the virtual world.

For example;

o   Many local general stores.

o   Local unbranded clothes and shoes companies.

o   Local herbal shops.