New Study by Package.ai Reveals Over 75% of U.S. Big Box Retailers stuck with dated technologies due to fear of "Rip and Replace"

TEL AVIV, Israel, Nov. 19, 2024 /PRNewswire/ -- A recent nationwide study shows that 75% of U.S. home-furnishing retailers are hesitant to upgrade to modern technology, citing "rip and replace" fears as a significant barrier. This concern is particularly prominent among retailers in industries like Home Furnishings, where seamless, cross-channel customer experiences are now essential to meet consumer expectations.

This reluctance to modernize poses risks to retailers, in an era where consumer standards are increasingly set by online giants like Amazon and Wayfair. According to the study, many retailers with legacy platforms still operate in silos in areas like last-mile logistics and customer engagement - whereas streamlining these two into one customer centric view is the modern, up to date way of achieving customer satisfaction.

The key findings of the study:

• Rip and Replace Concerns: 77% of surveyed retail leaders cited the daunting process of replacing legacy systems as a primary reason for clinging to outdated technology.
• Cost and Timeline Barriers: 66% mentioned the fear of high integration costs and extended implementation times as additional deterrents.
• Sectoral Pressure: Retail sectors heavily reliant on operational continuity, such as Home Furnishings, expressed the greatest reluctance, fearing disruptions in service.

Legacy System just don't cut it in the Age of AI 

The study underscores the urgency of modernization as AI-driven tools become critical for retail success. Outdated systems lack the flexibility to support advancements in customer lifetime value, Net Promoter Scores (NPS), and operational efficiency. As a result, retailers who delay upgrading to new gen AI based platforms may experience diminished customer Lifetime Value (LTV) and reduced competitiveness.

A Solution with Reduced Risk: A Safe Test Environment

For home-furnishing retailers concerned about the potential disruptions of system upgrades, new platforms offer a "Safe Test Environment". This solution allows retailers to evaluate new technologies within a secure, controlled setting, enabling gradual integration without impacting live operations.

"In today's fast-evolving tech landscape, big box retailers shouldn't fear innovation as there are already solutions in place," said Ziv Fass, Package.ai's CEO. "For instance, Our Safe Test Environment helps our customers and partners  modernize at their own pace, ensuring a smooth transition without operational interruptions."

The Future of Retail Belongs to Innovators

The AI paradigm shift is reshaping the retail landscape. Companies that proactively embrace modernization will not only keep pace but set the new industry standards. With solutions like Package.aiI's unified platform and safe test environment - retailers can make incremental updates, achieving continuous innovation with minimal risk.

About Package.ai

Package.ai offers the first unified last mile logistics and customer engagement platform. The platform's AI decision making engine integrates operational constraints and customer engagement, empowering Home Furnishing retailers to seamlessly communicate with customers at scale before, during and after their purchase.
Package.ai enables retail leaders across departments to make better decisions in real time while creating a delightful experience for their customers - fostering brand loyalty,  enhancing online reputation, and exponentially increasing Lifetime Value. Learn where you stand compared to the rest of the industry with Package.ai's new benchmark tool

For media inquiries, please contact:
Efrat Kotler
[email protected] 

Logo - https://mma.prnewswire.com/media/1863863/Package_ai_Logo.jpg

SOURCE Package.ai

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED