Imagine a shopper browsing their favorite store. The shelves are well-stocked, the checkout lines are short and everything feels seamless. Behind the scenes, there’s a silent orchestra of technology managing inventory levels, monitoring customer traffic flows, collecting online orders and ensuring it all runs smoothly and securely. This is the future of retail, where AI and data-driven systems quietly work to optimize operations, improve customer experiences and protect margins.
As retailers race toward this vision of the “store of the future,” they face a critical challenge: keeping their IT infrastructure up to speed with the demands of a new digital era.
AI-powered technologies like Epic iO’s DeepInsights platform are delivered on edge management platforms like Dell NativeEdge to play a transformative role in retail, enabling retailers to use computer vision to gather flow analytics, uncover insights that improve store layouts, reduce checkout times and streamline customer experiences.
"IT has traditionally been a revenue-protecting center, and the faster you can resolve issues, the more likely you are to keep systems online or prevent ransomware extortion to preserve revenue," said Samir Sandesara, product manager for Retail Edge Solutions at Dell Technologies. Epic iO is a Dell Technologies partner.
These emerging AI solutions leverage video analytics and real-time data processing to help retailers make critical decisions about store operations and customer engagement. Ultimately, these platforms provide the flexibility to process data at the edge, in the cloud, or both, offering scalability for retailers of all sizes.
The IT challenge: Modernizing with profit in mind
Despite the extraordinary potential of AI-driven tools, many retailers operate with legacy IT systems that cannot handle the modern applications required to support these new technologies. Without modernization, these tools risk underperforming or causing bottlenecks that hurt the very efficiencies they are designed to improve.
“A simple network outage that could have been resolved in minutes if handled autonomously can lead to significant losses if handled manually,” says Sandesara, emphasizing how quickly small inefficiencies can add up. “Let’s say a retailer might lose as much as $1,000 in sales per location when their credit card system goes offline due to a network issue. Automating responses can help ensure those losses don’t pile up.”
Before retailers can see the benefits of this type of customer-focused technology, they need to prioritize the underlying technological transformations that enable it. Here are three critical areas where Dell NativeEdge and Epic iO can help customers unlock meaningful change:
Smart and connected spaces
AI technologies like DeepInsights from Epic iO are transforming how physical retail spaces operate by creating smart, connected environments that adapt in real-time. Smart spaces integrate with IoT sensors and cameras to provide data that can enhance the customer experience and operational efficiency.
The DeepInsights platform offers real-time visibility into asset management and security, using AI to monitor store conditions, regulate lighting and temperature and gather data to suggest optimal product placement. The platform’s ability to deliver live security alerts and monitor environmental factors helps to keep retail spaces safe and efficient.
These capabilities extend to tracking foot traffic and adjusting store layouts dynamically based on customer flow patterns. If a particular section of the store, such as the bakery, experiences high traffic, then the system can alert staff to deploy additional resources to improve service. This level of responsiveness not only enhances customer satisfaction but also boosts sales by supporting a smooth shopping experience.
Retailers can better manage inventory by integrating real-time tracking solutions, making it easier to restock products efficiently. This reduces the likelihood of out-of-stock situations and helps retailers maintain consistent revenue generation.
People analytics
AI-powered people analytics are revolutionizing how retailers understand and respond to customer behavior. With tools like computer vision integrated into platforms like DeepInsights, retailers can collect real-time data on customer movement and interactions within the store. These insights enable retailers to optimize staffing, enhance store layouts and personalize the shopping experience.
For example, DeepInsights can create foot traffic heat maps to show how customers move through the store and where they spend the most time, helping retailers adjust store layouts to maximize sales. Additionally, real-time data on customer behavior allows stores to dynamically allocate staff based on need, leading to more efficient operations during peak hours.
Analytics can also inform decisions about promotions and product offerings. Retailers can see which products are frequently handled but not purchased and adjust pricing to encourage sales. By leveraging insights like these, retailers can not only optimize operations but also deliver higher customer satisfaction from more personalized interactions.
Loss prevention
Loss prevention remains a top priority for retailers, and AI technologies are providing significant advancements in this area. Traditional security methods, such as manual surveillance and reactive interventions, often fall short in addressing the complexities of modern retail environments. However, making the most of AI-driven video analytics and IoT sensor data to detect potential threats in real-time can be part of a proactive approach to loss prevention.
DeepInsights uses AI to monitor in-store activity and environmental conditions, alerting staff to unusual behaviors or security breaches. For example, the system can identify patterns associated with shoplifting or fraud, such as frequent trips to the exit without making a purchase, and flag for further review. By providing real-time alerts, stores can take appropriate action before losses occur.
Predictive maintenance capabilities can also reduce shrinkage by making sure equipment like POS systems and security cameras are functioning correctly. The ability to forecast maintenance needs and identify potential equipment failures helps minimize downtime. This proactive approach not only prevents losses but also reduces operational disruptions that can hurt the customer experience.
The path forward: IT modernization for retail success
As retailers evolve their businesses to be data-informed and better utilize AI technologies like Epic iO’s DeepInsights platform, it will become more important to modernize their IT infrastructure to support containers, autonomous operations and workloads like computer vision and data fusion. The ability to rapidly deploy and manage these applications will be essential for maintaining a competitive edge. With the right systems in place, retailers can reduce downtime, enhance customer experiences and protect their bottom line—all while staying agile in a constantly shifting marketplace.
Learn more about how Dell NativeEdge can help your customers create the store of the future.
