Technology as a Tool: Empowering Retail Employees
Retail productivity reaches its highest potential when technology is used to support the judgement and skills of frontline employees, rather than replacing them, according to a recent academic study. The research, conducted by scholars from the Goa Institute of Management, Indian Institute of Management Ranchi, and the University of Missouri–Kansas City, was published in the International Journal of Sociology and Social Policy.
The study comes at a time when the Indian retail sector faces increasing pressure to digitise human resources and workforce management. Competitors and consultants are urging retailers to adopt advanced digital systems, but findings suggest that a more thoughtful approach is required for effective results.
Local Context Matters: One Size Does Not Fit All
The researchers emphasise that simply copying technology solutions from large international retailers is often ineffective in India’s diverse retail landscape. Anamika Sinha, Professor of Organisational Behaviour and Human Resource Management at the Goa Institute of Management, highlights the importance of the human element. “In retail, technology alone does not create value; it is the frontline employees who drive customer experience and profitability,” she notes.
Professor Sinha points out that the real question for retailers is not whether the latest technology is available, but whether it helps stores boost profitability per square foot, taking into account existing staff and location constraints. She adds, “Socio-technical thinking allows leaders to make disciplined strategic choices and avoid costly errors when investing in technology.”
Aligning Technology with Human Talent
The study finds that when technology is thoughtfully aligned with the capabilities of frontline staff, retailers see measurable gains in sales, basket size, and customer engagement. This alignment also improves how store resources are used to achieve operational goals.
However, the researchers caution that retail formats vary widely. Differences in location, customer traffic, pricing sensitivity, and labor requirements mean that employees need different levels of autonomy. As a result, technology should sometimes assist, sometimes substitute, and sometimes remain in the background.
Professor Sinha warns that investments in retail technology often fail to consider these critical differences, leading to higher costs without the expected improvements in performance. “Many technology deployments do not account for contextual factors, resulting in operational friction instead of increased productivity,” she observes.
Key Factors for Productivity Improvement
The research identifies several factors that drive productivity gains in retail:
- Digital literacy among frontline employees
- Reliable inventory management systems
- Training that builds assisted selling capabilities
Operational aspects, such as store layout, hiring practices, supervisor involvement, and a culture of peer learning, also play crucial roles in determining whether technology enhances or hinders performance.
Different Approaches for Different Retail Environments
According to the study, data-driven recommendations work best in premium retail environments, where staff can leverage insights to offer personalised service. In contrast, in high-traffic hypermarkets, employees who efficiently guide shoppers through crowded aisles help increase basket sizes and build customer loyalty.
Technology that is introduced without consideration for the store’s social and operational context often adds unnecessary complexity. The most significant improvements are seen when technology enhances employees’ judgement and enables them to act as informed sellers, rather than reducing them to mere transaction processors.
Shifting the Narrative Around Retail Technology
Professor Sinha believes this research marks a shift in how retail technology should be viewed: “It’s not about adopting technology for its own sake, but about creating value by empowering employees to deliver better service.” She argues that technology in retail should be seen as a tool for operational enablement, not as a universal strategic advantage.
The findings challenge the prevailing idea of ‘best practices’ in retail digitisation and warn against indiscriminate technology adoption. Instead, the study advocates for a customised approach—one that recognises the unique challenges and opportunities presented by each retail environment.
Conclusion: Technology as a Partner, Not a Replacement
As India’s retail industry continues to evolve, the study urges business leaders to focus on strategic technology investments that enhance employee judgement and customer experience. The research underscores the need for a balanced approach that values the human element as much as technological innovation.
This article is inspired by content from Original Source. It has been rephrased for originality. Images are credited to the original source.
