Retail Innovation Labs: Shaping the Future of the Retail Industry
The pace of change has never been faster in retail, and unique collaborations are helping to shape the future. From academic institutions to global corporations, new facilities are being established to investigate and practice responsible innovation for the future of retail. These labs serve as multifunctional spaces where technology and human ingenuity drive invention.
The Retail Innovation Lab at McGill University
The Bensadoun School of Retail Management (BSRM) at McGill University recently launched a retail innovation lab. This initiative is a collaboration between McGill University and Alimentation Couche-Tard Inc. (ACT). The lab is a convenience store as well as a living lab that operates on the McGill University campus and houses one of the first frictionless stores in Canada. The lab’s mission is to blend multidisciplinary research with cutting-edge technologies to investigate and practice responsible innovation for the future of retail.
In this context, frictionless shopping allows customers to skip the checkout process with the help of cameras. Frictionless technology is an important part of the future of the retail landscape. With such a technological disruption, several new research questions arise in areas like pricing, assortment, inventory and supply chain management, and advertising. Interestingly, this technology may offer a more compelling value proposition going forward, as it entails a measure of social distancing, which may be preferred in the post-pandemic era.
Key Research Themes
The data from the lab will offer several great research opportunities at the interface of retail and technology. Several research themes that will be investigated include:
- Frictionless operations and related supply chain issues.
- Incentivizing customers for social good, such as encouraging customers to make healthier food choices.
- The tradeoff between personalization and privacy using anonymized data.
To support these goals, augmented reality technology will be used to reduce friction, making it easier for shoppers to find what they are looking for, as well as to provide another channel for incentivization.
VCU’s Shift Retail Lab
Shift Retail Lab, part of the da Vinci Center for Innovation at Virginia Commonwealth University (VCU), is a 2,700-square-foot multifunctional retail space. The lab supports VCU student innovators and entrepreneurs, providing them with a space where they can showcase their work, gain insights and test products, services and ideas with real-world customers. It is reinventing retail and education through human-centered design and a commitment to access, equity, and inclusion.
The lab’s programming is open to all entrepreneurs on and off campus at any stage of development, and they can test their venture ideas through the “Shelfie” program. Some Shelfies are already in the market and come to the lab to expand brand awareness and sales, while others are early in the ideation phase and looking for help to reach the next level.
Global Retail and Product Innovation Labs
Innovation extends into specialized industrial sectors as well. Diebold Nixdorf has unveiled a brand new Store Lab at the Global Retail Center in Katowice. This facility is purpose-built for hands-on training, live demos, and innovation, equipped with real retail setups and cutting-edge retail solutions. From checkout to forecourt, it’s a place to experience, test, and showcase how integrated technologies transform retail operations and elevate the customer experience.
Additionally, Golf Pride operates a Retail Lab located inside their Global Innovation Center (GIC). It is a place to view a full range of products, choose the right grips for your game, and even have them installed on-site by an expert technician. This GIC gives a “tour-like” experience into how the company innovates while researching new compounds and combinations of materials.
Comparison of Innovation Lab Initiatives
The following table summarizes the different retail innovation labs and their primary objectives based on the provided material:
| Lab Name | Institution / Company | Core Focus |
|---|---|---|
| Retail Innovation Lab | McGill University & ACT | Frictionless operations, healthy incentives, and privacy research. |
| Shift Retail Lab | VCU (da Vinci Center) | Student entrepreneurship, "Shelfie" program, and human-centered design. |
| Store Lab | Diebold Nixdorf | Hands-on training, live demos, and integrated retail solutions. |
| Retail Lab | Golf Pride | Product testing, performance optimization, and on-site installation. |
Going forward, these labs will help to be the engine of innovation for the retail industry and a source of talent for its future success. This unique collaboration between academia and industry will help to enable new customer and employee experiences.
