Location-based functions on mobile devices offer merchants opportunities to target their retail marketing campaigns and collect information about shoppers' habits. For example, Apple iBeacons could be used to send customers information about products as they walk past an aisle, PC World explained. This is just the beginning, though. Retail technology can take advantage of knowing a shopper's location to provide a whole new in-store experience.

Philips recently created a system using LED lights that can receive location information from shoppers' smartphones, Tech World reported. Using an app, customers can receive directions to help them find specific items in the store. With the lighting system serving as a grid, the app helps shoppers find the products they want and can then make additional suggestions for them. The light-based system could be easier and less expensive for retailers to install than other location-based systems, the source added.

In addition to making it easier for shoppers to find their way through stores, the system provides opportunities for retailers to collect information about consumers. For example, merchants can gather information about the time of day that certain demographics are most likely to shop, according to IT World. This data can be added to the information collected by the store's retail management system to drive data analytics for better business strategies.