Increasingly, a lack of available, flexible, and reliable connectivity can prevent and delay retail board-level strategies from deploying digital services. As we move through 2024 and beyond, retail businesses will ask: ‘Do we have the connectivity for that?’.  

Alongside the pressure of preparing for the 2025 PSTN switch-off, retailers now need to build in other connectivity capabilities. Whether they want to open and close outlets quickly, do more with their loyalty app, run more in-store display screens, add Internet of Things (IoT) capabilities to their distribution, warehousing, and supply chain, or incorporate Artificial Intelligence (AI) algorithms into their decision-making, the availability of secure connectivity will be a critical enabler. 

As a result, leading retailers are thinking hard about making secure connectivity available wherever and whenever their business needs it. They see developing their network infrastructure as an investment, not a cost.

At the heart of this thinking is that, in the dynamic retail landscape, connectivity has evolved far beyond merely facilitating point-of-sale transactions. Today, the seamless flow and real-time amalgamation of data is the lifeblood of retail, driving vibrant and efficient customer experiences that not only boost profits but also underpin an intricate web of behind-the-scenes supply chain activities.

Gone are the days when retailers operated in isolation from customer dynamics. Leading retailers are now harnessing the power of data, drawing on diverse sources such as apps, website interactions, footfall patterns, in-store Wi-Fi, and omnichannel activities.

This wealth of information forms the essential foundations for building a comprehensive understanding of customers and their purchasing behaviours. Armed with this knowledge, retailers can proactively anticipate customer needs, tailoring marketing strategies with precision, and optimising supply chain efficiency through accurate demand predictions.

Adapting to the flow of market demands, these forward-thinking retailers use this agility to open and close outlets in response to seasonal fluctuations and evolving customer demographics and preferences. More and more retailers are recognising that their IT and network teams are essential to this delivery – and other connectivity benefits - because this is only possible with a robust network, Wi-Fi coverage, and access to cloud applications for data processing and analytics. 

There’s a growing realisation that network connectivity is fundamental to everything they’re imaging for the business – from a grocery service able to deliver within 30 minutes of a customer’s order that depends on IoT links between couriers and the distribution base through to everything the marketing team would like to achieve with the loyalty scheme. In these businesses, IT teams are increasingly joining strategic discussions earlier, and IT infrastructure planning is going hand in hand with wider business development.

However, it’s important to note that, for many retailers, there are still significant gaps between their connectivity expectations and the reality of what they can deliver.

Of course, some retail businesses will hang back from investing in robust and secure network connectivity, potentially feeling the barriers are too high to overcome right now. What’s essential in these cases is to recognise where the hesitation comes from, so that they can have confidence in a practical solution that can be worked into any infrastructure development.  

Some retailers may have made changes but were discouraged, perhaps due to not seeing the expected benefits of previous IT investments. In particular, it may have proved difficult to get all the areas of their infrastructure communicating effectively. 

For some, connectivity is viewed as an inconspicuous, expected service, and transformative change may only be triggered when faced with a catalyst, such as an abrupt loss of connectivity that causes business operations to shudder to a standstill – especially if all point-of-sale capabilities are compromised.

In other cases, the complexity of getting connectivity into retail premises causes issues, particularly if the building has relatively old infrastructure or the business is within another business entity – like a shopping centre or an airport. 

Alongside navigating the intricacies of outdated infrastructure or integrating into a broader infrastructure set up, retail decision-makers and IT teams will need to collaborate on a strategic and adaptive approach, potentially embracing connectivity technologies they haven’t used before. 

And a significant number of retailers have serious concerns about the security of their network, should they pursue their vision of connectivity-driven transformation. These retailers are sensitive to increasing dependence on the network, which means rising security requirements. They know that integrating point of sale, confidential customer data, and proprietary insights and algorithms increases their attack surface and makes them a more desirable target for cyber criminals.

Whereas once a store was of low interest to attackers, today it can be the way into the heart of the business.