In retail, consumer expectations are pushing store operations to the next level, pressuring businesses to inject more and more tech to win market share. Considering the exploding growth of AI, automation, robotics, and IoT, it’s safe to assume that the store of tomorrow will look and feel a whole lot different than it does today. As with any technology, the success of this transformation depends on the strength of the underlying network infrastructure…
In essence, the concept of the store of tomorrow serves two primary purposes. The first one is to offer a seamless and engaging shopping experience that meets the customers’ changing needs and expectations, to enhance satisfaction, increase brand loyalty, and maximize sales. Secondly, simplifying and enhancing time-consuming, labor-intensive, and demanding processes, both in-store and in the back office, helps to drive better operational efficiencies, increase profitability, and support sustainability goals.
To achieve these goals, the store of tomorrow will rely on new and emerging technologies powered by artificial intelligence, automation, and robotics, including:
- Digital Mirror – Measures the dimensions of the person standing in front to either display outfits that best fit their body type or virtually “try” different hairstyles and colors in real-time, allowing more personalized experiences for the shoppers.
- Digital shelves (electronic shelf labels) – Communicate with a central hub to display dynamic, automatic pricing or other signage, saving manual labor costs and enabling more consumer interaction and engagement.
- 3D printing – Allows consumers to create fully customized, unique products like apparel or home décor on the spot, for a highly personalized experience with the brand. This also helps reduce the costs of manufacturing, logistics, and inventory waste.
- Temperature sensors – Help manage and optimize temperatures in freezers for grocery stores, and reduce spoilage for perishable goods.
- In-store robotics – Can perform a number of functions, from conducting real-time inventory tracking and replenishing store shelves to helping customers get additional information or find a specific product — even providing entertainment.
- Automated checkout – Allows users to pick up an item, scan it with an app, and pay for it, saving customer’s time and offloading in-store staff during peak hours.
- Proximity marketing – Targets shoppers with personalized advertising content based on their current location by leveraging wireless communication technology such as Bluetooth beacons, Wi-Fi, geofencing, near-field communications (NFC), and QR codes.
- Endless aisle – Shoppers can order products online that may otherwise not be available for immediate purchase and have it shipped to their home. Adds more convenience for the customer and helps retailers increase revenue by offering a wider range of products while reducing the need for in-store space for inventory.
- AI-based physical security – Can detect if a store visitor is acting out of the ordinary, trigger an alert if a banned person attempts to enter the store, notify security staff if movement is detected outside of working hours, or if someone enters an off-limits area.
- Smart HVAC – Sensor-based heating, ventilation, and air conditioning systems help reduce maintenance costs and minimize the store’s environmental footprint with an optimized energy usage.
- Drone stocking – A high mobility, combined with the ability to read RFID labels and barcodes from a distance allows to complete a full stock check and update inventory data faster, safer, more reliably and cost-effectively.
- Advanced asset tracking – Mitigates inefficiencies, inaccuracies, and financial losses attributed to traditional inventory management systems by enabling real-time, IoT-powered insights and visibility throughout the whole supply chain.
- Same-day autonomous delivery – Enables faster, contactless, and more sustainable deliveries with lower emissions attributed to traditional truck service.
- AI-based robotic inventory management – Coordinates and optimizes procurement, warehousing, distribution, and order fulfillment processes, improving accuracy, reducing costs, and enhancing customer satisfaction.
Network – the key building block of the store of tomorrow
What connects all smart technologies used in the store of tomorrow – literally and figuratively? Two simple words: network infrastructure. Whether it’s processing online orders, sending documents between branches or delivering personalized marketing communication to your in-store shoppers – the network is always running behind the scenes, controlling and monitoring accessibility to key data and files.
Let’s delve into some key factors to consider when building a network for your store of the future:
- Bandwidth and capacity needs – With more users, devices, and applications that are increasingly moving to the cloud, retailers require higher network bandwidth and capacity to support them. Having a clear picture of your bandwidth needs and making sure that your network can handle them is critical for the smooth, day-to-day operation of your business.
- Wireless network primed for retail – To support hyper-connected guest and employee experiences in high-density environments like retail outlets and shopping centers, businesses increasingly rely on the next generation of wireless networks, primarily Wi-Fi 6 and its extension Wi-Fi 6E, in some cases supported by private cellular networks like 4G and, more recently, 5G. It’s important to note here that while the latter offers some great benefits like low latency, high speeds, and flexibility, Wi-Fi will continue to be the retail industry’s first choice for wireless connectivity, primarily due to the better support for both new and legacy client devices, more control, and analytics functionalities. High speed, capacity, and reliability of Wi-Fi 6 and Wi-Fi 6E allow bandwidth-hungry devices and apps to run concurrently on one network, without compromising on the data rates and response times.
- Scalable and resilient wired infrastructure – A reliable, flexible, and easy-to-handle wired infrastructure is key to future-proofing an enterprise network in the rapidly shifting retail landscape. To ensure the continuity of operations with a high network uptime and facilitate the process of changing and expanding the network to new locations, more and more businesses are adopting fabric networking.
- Connectivity options between branch offices, data center and cloud – Given that legacy connectivity options like MPLS connections across wide area networks (WAN) take time to set up, can be quite expensive to use, and require a contracted service from a carrier or telecoms company, many retailers are considering more flexible, scalable, and cost-effective alternatives like SD-WAN.
- Cloud management – With centralized, granular visibility and control, accessible from virtually any place on earth, cloud platforms enable retailers to monitor and manage their networks more effectively while providing a level of agility that is difficult to accomplish with a traditional on-premises model.
- Network analytics – With AI-based, predictive and location-based analytics, retailers can stay on top of the foot traffic patterns and customer visitor counts in their stores, among other things. IT managers may harness data running through the network, devices and applications to understand the customer experience, have an inside look into their purchasing habits and preferences, and turn that knowledge into more informed decisions on store layout, product placement, etc.
Network – the strategic asset of the retail business
As retail businesses embark on exploring new and innovative ways to take their customer experience to the next level and enhance business operations, they require a comprehensive, reliable and powerful network foundation. One that doesn’t just enable connectivity but unlocks the full potential of emerging technologies and increases their return on investment (ROI).