Data Superiority – The Next Battlefield for Physical Retail

In many industries today, people talk about data superiority – the idea that the player with the most and best data wins. But in physical retail, stores have historically lagged far behind e-commerce. Online, everything can be measured – traffic, conversion, A/B testing, dwell time – while physical stores have fallen behind simply because the technology hasn’t existed.

“We have long known a lot about the customers who actually convert, but almost nothing about those who don’t. Look, look. Don’t buy is a phrase often used,” says Michael Lemner, retail strategist and new member of BizLab’s board.

“Here lies one of retail’s greatest untapped opportunities. In most segments, only 20–60% of visitors convert to purchase,” adds Tanja Cronqvist at BizLab. “The exception is grocery retail with nearly 100% conversion. That means more than half of the visitors in many stores leave without buying – and without leaving any trace.”

With modern technology, the store can now become an entirely new data source. Digital visitor counters can today – fully GDPR-compliant – detect all visitors by gender, age, and how long they stay in the store.

“Connecting this to retail media allows retailers to move from being just a store to becoming a media house – selling audiences instead of share of voice,” continues Tanja.

“The retailer with the most data, and who acts on it, gains a decisive advantage. But it requires a shift in mindset – moving from nice to have to need to have,” says Michael Lemner.

“Physical retail must become as data-obsessed as e-commerce already is. Only then can the store transform from a traditional point of sale into a data-driven media platform – and generate new revenue in an industry under margin pressure,” Michael concludes.

The question is: which retailers will be first to capitalize on the store’s full value and build true data superiority? After all, 80% of purchases still happen in-store.