The Internet of Things is set to have a big impact on retailers as more connect devices enter shoppers’ lives. Rebecca Thomson speaks to Dixons’ head of computing Dean Kramer about the effect he thinks the trend will have.

The internet of things is the term that has developed to describe the trend of every day devices such as thermostats, watches and fridges becoming connected to the internet. Shoppers will be able to control lots of these devices from their smartphones and tablets, via apps, or on online desktop interfaces. Dixons head of computing Dean Kramer explains the significance for retailers.

Is the internet of things an important trend?

The interesting thing from our point of view is we have seen the tablet market explode over the last three years – we sell huge volumes of tablets, probably without customers fully understanding the technology. This trend will help people make better use of those devices. How do you use your phone or tablet to connect with something, whether it’s your home or fitness or to control games. The onus on us is how to make that story simple and engaging.

Are consumers aware of this trend yet?

I don’t think so. Consumers are not aware of the possibilities of how they use their devices at the moment. We sell a lot of screens, whether it’s phones, tablets or laptops, each year, and people are going to discover they can use those screens in a more effective way.

What will happen first?

We are in the really early stages ourselves, but the things people will start to hear about are things like smart watches. Samsung is a major brand that has already launched one of these [the Samsung Galaxy Gear] and we are seeing a combination of big suppliers and really innovative start-ups working on this area. What will spark the biggest interest is when the big guys get involved and put lots of above the line marketing behind it. A lot of the smaller companies are getting involved with some really good niche innovation, but it takes one of the bigger suppliers to get the category started.

What do retailers need to do?

The first thing is to get a handle on customers’ reaction to some of this stuff. Inevitably there will be some big hits and some big misses in terms of what hits the mark with shoppers. So we’ll have quite an open dialogue with customers to get an idea of what people are looking for. Then, we’ll get a better idea of how we merchandise it and talk about it. The biggest mistake we could make would be to make assumptions on how people will use it.

What will make internet-of-things technologies take off?

The acid test will be usability over an extended period of time. Like any new technology, if it ends up not being used by the customer after a period of time it won’t be successful.

Will the internet of things have an impact on retail operations?

It does have implications. Mobile phones and tablets are now quite well known commodities. People come in with a good idea of what they want. In this space, it will be a real discovery journey. The consequences are that the conversation we have with customers will need to be more educational and specialist, at least before people get familiar with it. The same goes for merchandising and demonstrating the technologies.

Will the internet of things have as fundamental an impact on retail as the internet has had?

I couldn’t say at this stage. I know that online content and awareness will be even more important, but it’s too early to speculate.

How do you stay one step ahead of technology trends?

Big trade shows such as CES and CeBit help you track the next big thing in technology. We also work with our key big suppliers and our other, smaller partners. We count on them to have their finger on the pulse. Supplier innovation is really critical for us in terms of being part of the relationship.