A digital twin makes it possible to map out real-world objects and systems in virtual form, such as branch stores in a retail chain. The digital twin draws on data from different sources, which allows it to produce a precise depiction of its real-world twin, including shelf layouts, product placement and customer flows. The virtual model makes it possible to conduct analyses, visualize scenarios, perform simulations or forecasts, and optimize processes. This way, the digital twin opens up new ways to manage and optimize branch stores.
Digitalization in the retail sector
Digital twins: optimizing branch management and making data-based strategic decisions
How do digital twins work in the retail sector?
Creating a digital twin for a given store involves generating a precise 3D model and connecting it with existing data sources. Deploying IoT sensors and computer vision makes it possible to continuously record and display current data on stock levels, customer behavior and ambient conditions. This visualization enables users to access relevant data in a comprehensible and transparent format, contextualized in a familiar environment, which facilitates data-driven decision-making.
Besides providing insights into the store’s current performance, the digital twin also enables users to simulate future situations and analyze different scenarios. This means movement data and purchasing behavior can be used to optimize aspects such as product range and store layout.
Benefits of a digital twin
Creating digital twins of your branch stores provides access to the benefits of digitalization and enables you to future-proof your brick-and-mortar locations:
Real-time data – including from check-out systems, (thermal and normal) cameras, sensors and robotic systems – is collected and visually integrated into the digital twin. Even data that was previously not possible to visualize, such as customer flows, eye-tracking information and store conditions (e.g. broken lights, debris or puddles in the aisles) can be collated with existing data in a single location, made useful and depicted visually.
A transparent store visualization makes it possible to take data-driven decisions in real time – such as opening an additional check-out in response to increased customer numbers, or restocking shelves promptly if demand peaks. The 3D model can be used to map out and manage in-store tasks using a virtual ticketing system. The digital twin can continuously monitor the status of the branch and highlight potential areas of optimization.
Drawing on real-time data and analyses, digital twins can optimize in-store product availability by identifying sales patterns and anticipating orders more effectively.
Thanks to automated real-time decision-making, including on stock replenishment and the number of open check-outs, you can improve the in-store customer experience and boost customer satisfaction.
Digital twin simulations make it possible to trial in-store process optimizations in advance. This could include simulating how changing the shelf layout might impact on customer flow.
A digital twin can identify potential risks and thereby enhance safety and security. For example, the digital twin can highlight areas that are frequently targeted by thieves – or raise the alarm in the event of critical temperature fluctuations in the refrigerated section. It can also be combined with a recommender system for automated proposals to remedy issues.
The digital twin depicts detailed store data in virtual form, including the shelf locations of different products. This data serves as the basis for AI applications that aim to analyze and optimize brick-and-mortar retail processes and produce forecasts.
Digital twins make it possible to connect brick-and-mortar retail with your online stores to create a seamless shopping experience for your customers.
Use cases for digital twins in retail
A digital twin can integrate sensor data to visualize the energy consumption of electronic devices, such as freezer cabinets. An additional recommender system can examine this data to generate proposals for improving energy efficiency – and display these suggestions directly in the digital twin.
A digital twin can visualize which areas of the store are targeted particularly frequently by thieves. An additional recommender system can propose measures to counter this – and display them in the digital twin.
Based on real-time sensor data in refrigeration units, a digital twin can sound alarms in the event of critical temperature fluctuations. The digital twin highlights exactly which unit in the store is affected.
A digital twin can be deployed in conjunction with a ticketing system to manage the tasks assigned to in-store staff. For example, the digital twin can display exactly where a task should be carried out – with a corresponding ticket assigned to individual employees, who can then mark it as complete. By the same token, damage can also be recorded in the digital twin, and staff assigned to remedy the problem.
Our expertise
At Lufthansa Industry Solutions, we have extensive project experience in implementing digital twins in various sectors, including cruise ships, aviation, hospitality and local public transportation. We draw on the experience we’ve gained in these sectors in our retail projects.
A project to introduce a digital twin must always take account of individual requirements and framework conditions. Based on our standard concepts and technological platforms, we’ll work together with you to design and develop a customized solution that is precisely tailored to your needs. In addition to our industry expertise and technological know-how, we can also draw on decades of experience in consultancy and integration.
Would you like to find out more about digital twins?
Get in touch with us to arrange a demo appointment – we’d be happy to advise you further.