
Retail Technology
Top Trends 2022 - Retail Technology
By TechDogs Editorial Team

Overview
Technology is bridging the online and offline retail worlds, enabling retailers to provide one seamless (and modern) consumer shopping experience. From headless commerce platforms to Ecommerce live streaming to smart shopping carts and mobile self-checkout apps, we highlight five exciting Retail Technology Trends you need to know in 2022.
Let’s check them out!
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There's no question that the retail industry thrived throughout 2021. Statista predicted that global retail sales will exceed $25 trillion this year, up from $23.3 trillion in 2020 at the start of the pandemic. That's despite a litany of obstacles including supply chain disruptions, staff shortages and the logistical nightmare of keeping shoppers and employees safe as people returned to in-store shopping.
Last year we covered top trends in Retail technology such as the influence of AI in retail, mobile shopping, Scan-And-Go Shopping and emerging payment apps, among others. This year, to make your life easier again, we've combed top industry sources to compile five of the hottest Retail Technology Trends for 2022. We've paired each trend with some of our own opinions to provide a glimpse into what 2022 has in store for retailers.
So, grab a hot drink and settle in for a wild ride that will have you losing your head (in a good way), kicking checkout lines to the actual curb and leave you craving both physical and virtual shopping experiences (plus everything in between).
Don’t believe us? Jump in to begin your retail journey!
Trend 1: Retail Technology Goes Headless

Headless everything has been all the rage in technology circles throughout 2021 and it looks to be an even bigger trend for 2022. What does that mean, you ask? Headless platforms are those that decouple the front-end presentation layer (e.g., your website’s display) from the backend machinery that keeps everything running.
In the Retail Technology space, headless commerce platforms separate the shopping layer from the administration and customer data layers. So, the stuff that customers interact with (e.g., product pages, shopping cart, ancillary content) exists independently from the stuff that makes Ecommerce possible - payment processing, inventory tracking, order fulfillment, etc. Decoupled or headless architecture means that developers can work independently from marketers. This frees both teams to focus on what they do best (e.g., create content versus developing/deploying functionality).
Thanks to their robust flexibility and scalability, headless platforms are becoming more popular with retailers versus traditional "monolithic" platforms. Monolithic systems link the frontend to the backend. They're old news for many reasons including their lack of scalability, vulnerability to cyber-attacks and limitations when it comes to delivering true omnichannel experiences.
Pure headless platforms can be a bit tricky to operate since they rely on developers to execute just about everything but hybrid headless platforms provide the best of both worlds. The hybrid headless approach uses API (Application Processing Interface) calls for front-end/ back-end communication while providing a Content Management System (CMS) layer so non-technical users can easily update the website or app content. This makes a hybrid headless system infinitely flexible and scalable since it means content can be pushed to any device or channel at any time, new technologies can be added and different development frameworks can be used.
TechDogs Opinion: Headless and hybrid-headless commerce platforms will allow retailers to add functionality and deliver better shopping experiences and will continue to be popular throughout 2022. Hybrid headless platforms will drive the headless approach to decouple the frontend from the backend, creating more flexible frameworks. Retail businesses will even include a standalone CMS that will give non-technical users much more control over content creation and deployment, not having to rely on the backend developers to update the content on their schedule.
We believe that in today’s fast-paced ecommerce world, retailers must be able to swiftly respond to consumer preferences and add site functionality quickly to respond. A headless approach to Ecommerce will enable them to do just that
Trend 2: Omnichannel Retail Is The Only Way Forward

Global consumers are a determined group – don't you think so? Over the past two years, consumer behavior has demonstrated their willingness to change and modify shopping preferences and expectations based on an uncertain, unstable and constantly changing retail store ecosystem. From supply chain bottlenecks to worker shortages to manufacturing snags that equal reduced availability for everything from blue paint to cream cheese, consumers have been forced to get creative with how they shop.
In 2021, more people shopped in more ways than ever before. Smartphone shopping (for example) is at a historic high, with 41% of respondents in PwC's recent Global Consumers Insights Pulse Survey saying they shop daily or weekly via mobile or smartphone (um, guilty!). Consumers are using PCs, tablets, smartphones and even smart voice assistants to shop.
They're buying online and picking up their goods in physical stores (BOPIS – Buy Online; Pickup In-Store). They're using social media in new and creative ways including shoppable and live stream video. They're hitting all the channels- from web-based marketplaces like Amazon to their favorite local retailer's online storefront, making omnichannel retail a top trend for retail technology in 2022.
To quote from PwC’s December 2021 Global Insights Pulse Survey, to succeed in a digital world, companies will need to take advantage of new technology, not to copy what everyone else is doing but to advance their own mission by investing in the differentiating capabilities that allow them to deliver on their purpose. Hence, retail businesses will need to identify the right channels based on their specific target audience to develop omnichannel strategies that will help them differentiate from competitors.
TechDogs Opinion: Retail Technology that facilitates and embraces an omnichannel approach will dominate the Retail Technology landscape in 2022. This includes headless commerce platforms (see Trend #1 above) as well as tools that will allow retailers to streamline the online shopping experience across multiple channels.
An omnichannel retail strategy will require the unifying of catalog and inventory management across all channels but will also need to align messaging, offers and communications at the customer level. To this end, we'll see loyalty programs tying into omnichannel capabilities that allow customers to earn benefits, access deals and stay up to date on the latest offers whether they shop in stores, online, or via a mobile device. We believe that aligning retail operations across verticals to go with omnichannel strategies will be in focus in 2022.
Trend 3: Smart Shopping Carts And Mobile Self-Checkout For The Win

Smart or "frictionless" shopping cart technology combines the convenience of online shopping with a brick-and-mortar shopping experience. It's quite possibly the best of both worlds! There are two flavors of frictionless in-person shopping experiences: smart shopping carts and self-checkout mobile apps – and we expect both to be top trends in the retail sphere in 2022!
The first one of them allows shoppers to place items into "smart carts" as they shop in the store, which will keep track of all the items, the total bill and apply relevant offers, etc. while shoppers complete their purchases. Mobile self-checkout apps will then enable shoppers to scan and pay for their purchases from their smartphone, skipping checkout lines completely. Brands such as Sam's Club's Scan & Go app lets shoppers scan items as they shop and checkout from the app itself, bypassing long checkout lines completely.
Brands such as Kroger, on the other hand, are making their actual shopping carts smart with AI-based features that enable autonomous checkout technology. Dalvin Brown for the Washington Post validates this trend, “Kroger now has 20 branded smart carts built to know what customers place inside. The wireless buggies can tally up your total, make recommendations and allow you to pay for groceries directly on the cart.” This trend is aimed at improving the customer experience during in-store shopping.
TechDogs Opinion: Smart cart and self-checkout mobile technology answers the question, "What if I could go into a store and buy stuff without ever interacting with another human being?" It's an innovative way for consumers to use retail technology in stores to help them avoid what many shoppers feel is the most unpleasant part of in-store shopping – the long checkout queues.
It also helps retailers bridge the online and offline customer shopping experiences and (bonus!) it's contactless, which is a big plus as a pandemic-weary world enters 2022. Another advantage for retail brands is the reduced labor costs, as self-checkout technologies reduce the need for a human workforce. Moreover, mobile self-checkout and smart shopping carts are more effective compared to cash registers and counters as they undoubtedly take up much less space.
Trend 4: Livestream Shopping Is Coming To All Devices Near You

Livestream shopping, loosely defined, is when businesses and brands try to sell you stuff by hosting a live video event over the Internet. Typically, they do this by using an influencer or brand representative. China has been successfully leveraging livestream shopping for a few years, with their livestream shopping market estimated at over $66 billion thanks to influencers like Huang Wei (known as Viya) attracting millions of viewers on China's livestream platform Taobao Live. Retailers and influencers in other countries are expected to take note and soon this will be a top Retail Technology trend in 2022.
Many retail experts believe that livestream shopping events will fill a need for human connection that pandemic-era isolation has created. It will enable shoppers to connect with brands in a (sort of) face-to-face way while getting a better sense of the overall look and feel of a product. There were over 10 million Ecommerce livestreams during the first half of 2020 and this number continued to grow throughout 2021 as livestream shopping took hold in the US. This trend is most likely to proliferate in 2022 and retailers will employ more such strategies in 2022.
Facebook’s parent company Meta validates this trend by saying, “You can tune in to the Live Shopping streams on each brand’s Facebook Page or by visiting the Shop tab or bookmark on mobile. And if you see something you love, you can easily purchase items presented during the Live Shopping stream by tapping on the products featured in the stream and checking out, all without leaving Facebook.” Hence, brands and businesses with a strong social media presence will look to leverage livestream shopping in 2022.
TechDogs Opinion: Statista reports that livestream ecommerce sales will reach about $11 billion in the US in 2021 and are expected to grow to $35 billion by 2024. We think livestream shopping events will continue to thrive throughout 2022, with more and more companies jumping on this particular retail technology bandwagon. In response to the rising demand for online shopping, platforms like Facebook and YouTube have been field-testing new livestream shopping events and functionality.
For example, Meta launched Livestream Shopping Fridays in May of 2021. This weekly event ran through mid-July and featured the top beauty and apparel brands like Clinique, Abercrombie & Fitch and Dolce Vita. Each weekly ecommerce livestream is centered on a specific theme enabling brands to showcase specific products and services, that might not be possible using traditional retail channels. Moreover, we believe that the true value addition of live stream shopping is the interactive aspect, which will transform traditional retail and shopping to conversational experiences.
Trend 5: Retailers With Physical Stores Are The New Black

Continuing the trend of the virtual world spilling into the real world and vice versa, our final trend of note is the comeback of in-person shopping. Let's face it, people are sick of being stuck inside. All this social distancing and lack of human contact are making us stir crazy. According to Retail Dive, 90% of consumers still want to shop inside physical stores and half say they miss browsing in stores and/or being able to buy an item instantly (waiting for your online products to be delivered is hard!).
Retailers with physical stores - even small one-store boutiques - are benefiting from this trend. Big retailers, particularly grocery chains like Walmart and Kroger, are successfully leveraging their physical stores to enhance their digital offering (and giving Amazon a run for its money!). The interesting thing about this trend is that having a physical store (or stores), seems to help digital sales. All three companies collectively increased their online sales by nearly 22% this year. That's mainly because retailers with physical stores can offer a variety of fulfillment options like curbside/in-store pickup and local delivery – which all depend on digital modes of interaction.
TechDogs Opinion: While the pandemic will eventually end (one hopes), the new ways that consumers are learning how to shop likely won't. At TechDogs, we love picking up our groceries curbside or scanning our stuff as we shop inside a (physical) Sam's Club location. We enjoy being able to touch and feel our household goods while browsing (fully masked) in our local candle shop. Like most shoppers, in-store shopping has been the backbone for most consumers, bar the last couple of years.
The main point retail businesses need to remember is that brick-and-mortar stores will regain their place in the retail sphere – there's no experience like the in-store experience! Moreover, brands realize that nothing can replace engaging salespeople, in-store offers and rebates and the convenience of shopping quickly at local stores rather than waiting for products to arrive in “5-7 business days”. This is why we predict that physical stores will make a comeback in 2022.
To Wrap It Up
If we leave you with one key takeaway from this collection of Retail Technology trends, it's that investing in Retail Technology and its analytics is critical to survive and thrive in the coming year. Now is the time to upgrade your website, unify your product catalog across physical and digital technology channels, and meet your customer expectations utilizing such insight where they are in both the physical and virtual worlds. It's going to be a wild ride!
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