retail trends in 2022

Unlock the potential of SAP Commerce Cloud in the retail industry. Explore SAP Commerce, previously SAP Hybris, and leverage LeverX expertise for excellence.

Unlocking Retail Excellence with SAP Commerce Cloud

In an era defined by the widespread adoption of SAP Commerce Cloud (aka SAP Hybris) across 21,195 websites, the retail industry finds itself at a pivotal juncture, skillfully navigating obstacles while actively embracing transformative growth. The landscape is characterized by dynamism, with 4,894 live websites currently utilizing SAP Commerce Cloud and an additional 16,301 having done so historically. Various sub-sectors within the retail industry prioritize distinct strategic imperatives, and LeverX's expertise with SAP Commerce Cloud plays a crucial role in propelling the industry's evolution forward.

Retailers are contending with the persistent shift toward E-commerce, grappling with challenges such as inflation and supply chain disruptions. In response to these complexities, adopting a robust omnichannel strategy becomes advantageous and imperative for sustained success. This post delves into how SAP Commerce Cloud effectively addresses these pivotal challenges, illustrating how it unlocks unprecedented benefits within the retail industry.

Navigating the Varied Challenges Across Retail Segments

SAP's report sheds light on the diverse challenges faced by different segments of retailers, each grappling with unique obstacles that shape their strategic imperatives.

General merchandise stores

In general merchandise stores, the challenge is crystal clear: customers have increasingly higher expectations for their online shopping experience. To thrive in this competitive landscape, allocating resources to enhance customer interactions becomes pivotal. These stores excel in empowering sales and service agents with relevant insights. Yet, the ongoing challenge is to ensure continuous improvement, adapt to evolving customer expectations, and effectively leverage technology to empower agents.

Fashion retailers

For fashion retailers, the focus is on platform flexibility to cater to rapidly evolving trends and customer preferences. The challenge lies in finding agile solutions that seamlessly add or change customer touchpoints. Integration complexities present another hurdle: requiring the seamless connection of various operational aspects, from product information to pricing and fulfillment. Striking the right balance between innovation priorities and addressing sustainability concerns is an ongoing challenge for this segment.

Grocery retailers

In grocery retail, the top priority is market expansion and revenue generation. The challenge here is twofold: devising strategies to enter new markets and generating revenue while understanding diverse market demands. Grocery retailers prioritize platform extensibility, facing the challenge of implementing and managing scalable systems adaptable to the sector's unique needs. Implementing and optimizing services for customers to buy online and pick-up in-store in the post-pandemic environment is another challenge this segment encounters.

Common challenges across retail segments

  • E-commerce transition: A historic shift to retail E-commerce poses challenges for all segments. Retailers must continually adapt to new digital landscapes, addressing supply-chain challenges, inflation, and margin pressures.
  • Omnichannel strategy: Nearly two-thirds of retailers have embraced an omnichannel strategy, presenting the challenge of ensuring a seamless connection between digital and in-person experiences. Success in this transition hinges on choosing the right platform.
  • Post-pandemic consumer behavior: With less than half of retailers expecting a return to pre-pandemic brick-and-mortar shopping levels, understanding and adapting to post-pandemic consumer behavior is a shared challenge. Aligning strategies with the preferences of consumers who have embraced online and omnichannel shopping experiences becomes paramount.

In the face of these multifaceted challenges, retailers can strategically leverage SAP Commerce Cloud. This approach allows them to address specific industry nuances while embracing a holistic strategy to meet the evolving needs of the modern consumer.

Embracing the E-commerce Transition With SAP Commerce Cloud

The seismic transition to retail E-commerce marks a historic turning point, presenting formidable challenges across all retail industry segments. In navigating this transformative era, SAP Commerce Cloud emerges as a dynamic solution that empowers businesses to confront transition challenges and seize unparalleled opportunities embedded in the E-commerce realm.

Statista's report underscores the urgency and magnitude of this shift. With the number of online buyers projected to reach a staggering 3,701.0 million by 2028, coupled with a user penetration rate expected to soar from 43.1% in 2023 to an impressive 52.5% by 2028, the E-commerce market's potential is nothing short of expansive. The average revenue per user (ARPU) further emphasizes the economic significance, poised to amount to US$1,170. These figures serve as a compelling catalyst for retailers to adapt and proactively embrace digital transformation.

SAP Commerce Cloud plays a pivotal role in surmounting the challenges of the E-commerce revolution. Its versatile and scalable platform acts as a strategic ally, allowing businesses to adapt seamlessly to new digital landscapes.

Addressing supply chain challenges is more than a necessity — it is an opportunity to streamline operations and enhance efficiency. In the face of inflationary pressures, SAP Commerce Cloud empowers retailers to strategize and optimize pricing models, ensuring resilience in the shifting market dynamics. The platform's capabilities play a pivotal role in managing and mitigating margin pressures, fostering a sustainable approach to profitability.

Meeting the transition challenge with SAP Commerce Cloud is not merely about survival but about thriving in a landscape of unprecedented growth. By embracing this solution, retailers position themselves to capitalize on the vast user base and revenue potential projected for the E-commerce market. SAP Commerce Cloud serves as the catalyst for innovation, resilience, and strategic growth, allowing businesses to not only weather the digital storm but to emerge as leaders in the new era of IT solutions for retail.

Elevating Omnichannel Experience with SAP Commerce Cloud

SAP Commerce Cloud meets the evolving expectations of the contemporary consumer that craves a fluid blend of online and offline interactions. This platform excels in fulfilling these demands by providing a unified space where all selling channels seamlessly integrate. The result is a consistent and harmonious customer journey that transcends physical and digital touchpoints.

The efficacy of SAP Commerce Cloud is vividly illustrated through the success stories of industry giants, the ALDO Group and Arezzo. The ALDO Group experienced a remarkable 20% growth in year-over-year sales, a testament to SAP Commerce Cloud's ability to address inventory discrepancies and enhance overall customer experiences. Similarly, Arezzo saw a 2% increase in profit within the first year of leveraging SAP Commerce Cloud, highlighting its effectiveness in successfully engaging customers across diverse channels.

By providing a robust and unified platform, SAP Commerce Cloud empowers retailers to not just adapt to the omnichannel landscape but to thrive, which fosters growth, customer satisfaction, and a competitive edge in the dynamic world of modern commerce.


Navigating Post-Pandemic Consumer Behavior with SAP Commerce Cloud

The seismic shift in consumer behavior during the COVID-19 pandemic accelerated the already consistent growth of E-commerce. In the aftermath, with less than half of retailers anticipating a return to pre-pandemic brick-and-mortar shopping levels, understanding and adapting to post-pandemic consumer behavior becomes a shared challenge. In this landscape, aligning strategies with the preferences of consumers who have embraced online and omnichannel shopping experiences is paramount.

According to McKinsey, E-commerce experienced unprecedented growth during the pandemic, with year-over-year increases of 1.6 times in China, 3.3 times in the United States, and 4.5 times in the United Kingdom. In the United States, E-commerce sales penetration more than doubled to 35% in 2020, a surge equivalent to ten years of growth. As the retail landscape becomes increasingly competitive, personalization emerges as a key differentiator. SAP Commerce Cloud, bolstered by features like the pre-integrated SAP Marketing Cloud, empowers retailers to deliver profoundly personalized experiences.

The same McKinsey article states that personalized content can contribute a significant boost, adding up to 20% to the average order. Particularly in the fashion and apparel industry where high return rates pose a significant challenge, SAP Commerce Cloud tackles this issue head-on. Leveraging personalization, the platform recommends appropriate sizes based on past purchase history, enhancing the customer experience and mitigating the impact of returns. This proactive approach enables retailers to understand customer preferences, avoiding deep discounts or free shipping for serial returners, thereby contributing to a more sustainable and profitable business model.

Unlock the Power of SAP Commerce Cloud: A Checklist of Benefits

The advantages of SAP Commerce Cloud extend far beyond the facets outlined above. Delve into a more comprehensive overview of the transformative benefits awaiting your business when you adopt this cutting-edge solution.

Enhanced customer experiences Flexibility for ever-evolving trends Strategic market expansion

SAP Commerce Cloud facilitates a seamless and personalized shopping experience, elevating customer interactions.

Empowers sales and service agents with relevant insights to ensure continuous improvement and adaptability to evolving expectations.

Offers platform flexibility for businesses, which is especially crucial for industries like fashion. This enables the seamless addition or alteration of customer touchpoints.

Addresses integration complexities, ensuring a smooth connection across various operational aspects, from product information to pricing and fulfillment.

Supports market expansion and revenue generation strategies for businesses seeking growth opportunities.

Provides platform extensibility, enabling the implementation and management of scalable systems tailored to unique industry needs.

Optimized services Comprehensive data utilization Adaptability to diverse market demands

Assists in implementing and optimizing post-pandemic services, such as buy online/pick-up in-store, to meet evolving customer expectations efficiently.

Mitigates challenges posed by market changes and ensures the continued efficiency of services in the new normal.

Leverages data-driven insights for personalized content, contributing to an increase of up to 20% in the average order.

Addresses high return rates by recommending appropriate sizes based on past purchase history, fostering a sustainable and profitable business model.

Ensures adaptability to diverse market demands, helping businesses understand and strategize for different consumer behaviors.

Strikes the right balance between innovation priorities and sustainability concerns, fostering growth and resilience in a competitive market.



TOP Systems Integration Company

Case 1. Omnichannel solution for an international developer and manufacturer

The LeverX project helped to improve customer interactions and sales processes by creating a global E-commerce platform based on Adobe Experience Manager (AEM) and SAP Hybris Commerce.

The result?

  • Robust E-commerce platform with tailored product catalogs
  • Refined demand forecasting
  • Data silos eliminated
  • Streamlined data collection and processing
  • Cost-effective data aggregation and visualization
  • Customer experience improvement
Learn More
Good firms.Top Software Development Company

TOP Software Development Company

Case 2. Marketing and HR processes transformation for a leading food retailer

We helped our customer increase profits from product sales by customizing SAP solutions. The stock balance and all merchandising processes are now presented on timely reports and convenient dashboards.

The result?

  • Tailored adjustments to the existing SAP solutions
  • Distribution processes optimization
  • Effective personnel evaluation processes and training
  • Advanced batch tracking features
  • Calculation of the stock balance volumes
Learn More

The Bottom Line

In navigating the diverse challenges across retail segments and embracing the dynamic shifts in consumer behavior, SAP Commerce Cloud stands as an indispensable catalyst for innovation and growth. The retail industry, characterized by its transformative journey, finds resonance in SAP Commerce Cloud's ability to unlock unprecedented benefits. From addressing the E-commerce transition to enhancing omnichannel experiences and adapting to post-pandemic consumer behavior, this comprehensive solution really makes a difference to your retail business.

We invite you to unlock the full potential of SAP Commerce Cloud by initiating a transformative journey with LeverX – your reliable SAP Partner and Global System Integrator. With over two decades of expertise, our company serves as your essential companion, ready to provide customized solutions for intricate challenges. Expect swift launches, high-quality development and implementation, and seamless integration with SAP and other solutions.

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