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Oracle Ups Ante in Digital Commerce with New Retail Services

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Oracle (ORCL - Free Report) recently introduced Oracle Retail Xstore Office Cloud Service and announced several enhancements to Retail Omnichannel suite at National Retail Federation (“NRF”) 2019.

Oracle Retail Xstore Office Cloud Service consolidates back-office workloads in a bid to streamline and accelerate business processes. Moreover, the retail customers opting for the services can leverage cloud solutions without incurring expenses on data center, consequently lowering total cost of ownership (“TCO”).

The latest centralized service offers a more receptive business model to retailers as it is enabled to adjust to evolving consumer tastes and preferences.

Oracle ramped up its retail cloud portfolio to include more digital offerings to support retailers with digital transformation. The users can avail a self-service experience of the latest enhanced services at Oracle’s point-of-sale kiosk at the event.

Customers in the digital era demand a synchronized shopping experience across multiple sales channels, be it online (desktop or mobile or any other device), telephone, or brick-and-mortar outlets.

Notably, omnichannel strategy is being increasingly adopted by retailers to digitally expand their business and broaden market reach. It offers seamless shopping experience by adopting a multichannel approach.

Omnichannel Enhancements to Drive Adoption

Oracle Retail Xstore Point-of-Service is the building block of the company’s Retail Omnichannel Suite.

The solution offers comprehensive omnichannel retailing experience to consumers as it is pre-integrated with Oracle Commerce Cloud, Oracle Retail Order Management, Oracle Retail Customer Engagement and Oracle Retail XBRi Loss Prevention, among other services.

This incremental adoption of Oracle’s services is anticipated to aid financial performance of the company in the foreseeable future.

Moreover, Oracle Retail XBRi Loss Prevention and RFID (or radio frequency identification) integration upgrade offers more visibility into the sales trajectory, offering secure reporting methods to retailers.

Further, Oracle Retail Customer Engagement Cloud Service integrated with Oracle Retail Offer Optimization utilizes artificial intelligence (AI) and digital assistants’ capabilities to offer advanced services.

To Conclude

Oracle’s move to ramp up Retail Omnichannel product suite, is in sync with the company’s strategy to capitalize on the digital commerce market and strengthen competitive position against peers like Salesforce.com (CRM - Free Report) , SAP (SAP - Free Report) , Adobe (especially after Magento acquisition), among others.

Notably, per “Global Unified Commerce Forecast” research report from 451 Research, digital commerce transactions are envisioned to witness a CAGR of more than 20% globally to reach $5.8 trillion in 2022.

Moreover, Gartner in its latest “Magic Quadrant for Digital Commerce” recognizes Oracle as a leader.

Per Gartner as revealed by Oracle, the use of advanced personalization engines (utilized to be familiar with evolving customer tastes) is anticipated to drive profit levels of digital businesses by up to 15% by 2020.

Oracle’s growing clout in retail domain, primarily in digital commerce reinforces the company’s growth prospects. The company’s evolving Customer Experience (“CX”) strategy enabling retailers with AI and cloud driven digital innovation is a positive.

Zacks Rank & Key Pick

Oracle carries a Zacks Rank #3 (Hold).

Veeva Systems Inc. (VEEV - Free Report) , a Zacks Rank #1 (Strong Buy) stock, is worth considering in the broader technology sector. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Veeva Systems is currently pegged at 19.5%.

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