In the dynamic world of retail, Wi-Fi has become critical in physical stories despite the rise of online shopping.
That’s according to a recent report by Retail Systems Research and Extreme Networks Inc. titled The World is Connected: The Store Must Be Too. The report surveyed 114 executives from global retail companies with annual revenues ranging from $100 million to more than $5 billion. It delves into the challenges and opportunities in creating engaging in-store experiences that align with evolving consumer expectations.
One key challenge highlighted in the report is increasing demands on network bandwidth, which 75% of retailers are concerned about. That’s because consumers today rely heavily on smartphones throughout their shopping journey — whether to research products, compare prices or locate items in stores. This widespread use of technology has dramatically changed customer behavior, but the in-store experience has primarily remained the same.
Three out of four retailers acknowledge the need to increase bandwidth and add more Wi-Fi access points to keep pace with current business demands. Modern networks are vital for day-to-day operations like point-of-sale systems, security cameras, and self-checkout scanners. All these elements depend on a stable and reliable network.
Some 94% of retailers feel that the demand for network resources is seemingly endless. Managing new technology, especially adding and integrating new devices into existing networks, is a significant issue for 88% of retailers. Although 72% would prefer to have a universal network, only 17% are actively working toward a consistent technological setup across their stores.
Retailers overwhelmingly agree that Wi-Fi is essential for a modern in-store shopping experience, and more than half report a significant improvement in customer experience due to Wi-Fi. However, only 32% of retailers have state-of-the-art Wi-Fi networks, while 57% consider their networks “good enough.” Wi-Fi is also considered an operational efficiency tool, with 72% of retailers using it to manage store operations.
Ninety-six percent of retailers believe Wi-Fi has significantly contributed to streamlining store operations by automating tasks like inventory management, loss prevention and electronic shelf labeling. When it comes to prioritizing technology for operational improvement, 66% of retailers rated corporate wide-area networks as very important, followed by network-connected internet of things devices at 65% and inventory management tools at 62%.
The findings show that the most successful retailers effectively employ Wi-Fi solutions to enhance in-store experiences and streamline store operations. Retailers with above-average year-over-year sales growth are distinguished by their strategic use of technology.
These successful retailers more frequently, at 63%, acknowledge the role of in-store Wi-Fi in improving customer service and handling orders, compared 26% of other retailers. They also prioritize cashierless checkouts and self-service kiosks after Wi-Fi, indicating a strategic investment in technology.
One aspect of the retail industry that the report didn’t touch on but that will drive bandwidth up even higher is the network-centric technology coming to this industry. Some retailers are experimenting with cashierless systems, such as Amazon.com Inc.’s Just Walk Out, which relies on camera vision to track purchases.
I’ve talked to other retailers looking at in-store augmented reality, where directions can be superimposed on a video feed to provide directions. And then there’s the upcoming wave of generative AI where a shopper could ask a mobile app in plain English to compare products or direct them to one.
Retailers will spend significant dollars to stay ahead of the curve. Underinvesting in Wi-Fi and the core network can have a significantly impact on the returns retailers are expecting to get.
In conclusion, the report recommends investing in Wi-Fi to meet consumer expectations and get a return on investment by linking in-store customers with digital services like customer relationship management systems. The most successful retailers proactively upgrade their Wi-Fi networks to cater to current and future needs.
Other important considerations during this technological shift are security and privacy. As consumers grow more aware of their data usage, retailers must ensure transparency in collecting and using customer data.
Finally, choosing the right network partner is essential as retailers often lack the resources to keep up with technological advancements. Partnering with specialized network providers can help manage the complexities of maintaining and upgrading Wi-Fi infrastructure.
