The retail industry is on the road towards expanding its analytics. According to MarketsandMarkets, the retail analytics market is expected to increase from $1.88 billion in 2014 to $4.40 billion in 2019.
The increase can be attributed to several variables, such as social media presence, big data and rise in mobile commerce. More importantly, focusing on retail analytics is expected to reduce shrink, an issue many retailers face daily. Retail analytics can help unveil better purchasing patterns and create a more pleasant customer experience. Uncovering the full analytic shopping experience can also pin-point what drives consumer spending habits.
The retail market will address business functions such as supply chain management, strategy and planning, marketing and customer analytics and merchandising and in-store analytics, while business solutions will include mobile applications, analytics software, reporting and visualization tools and data management software. Each step of a product’s lifecycle, from warehouse to manufacturer, manufacturer to retailer and retailer to consumer, will have an in-depth analysis.
The retail analytics market covers North America, Europe, Latin America, Asia Pacific and Middle East and Africa. With regards to revenue, North America is expected to be the largest market, although Asia-Pacific and Latin America are expected to increase in 2019.