12 December 2023
Paul McHugh, Area Director UK, Cradlepoint
In the fiercely competitive retail market, staying connected is a strategic imperative. Network downtime poses challenges that are not only disruptive but can also cause severe financial implications for retailers.
According to recent statistics from Cradlepoint’s “State of Connectivity” report, nearly half (44%) of UK retailers face up to two hours of connectivity downtime every week. With Gartner estimating that network downtime can cost businesses an average of £264,700 per hour, this represents a huge cost to retail businesses up and down the country.
Connectivity issues not only disrupt dayto-day business but also result in increased operating costs for nearly half (49%) of UK retailers. Unexpected bills or cost inefficiencies can arise, due to needing to send engineers to fix issues at stores, for example, or not being able to effectively track stock, leading to wasted merchandise. Moreover, 36% report losing potential business due to connectivity problems, and over a fifth (22%) have lost out on talent as a direct result of poor connectivity. Retailers are doing everything they can right now to encourage customers through the door. Facing repeated connectivity issues however, they’re being prevented from being able to offer superior in-store experiences and drumming up business, which in turn, has a knock-on effect on their overall competitiveness.
The good news for merchants is that emerging technologies and new connectivity solutions are available to help them alleviate some of these pressures. Here are some different ways that retailers can improve their connectivity to stay ahead of the competition.
Consider cellular networks as a viable alternative to fibre
Scores of retailers have opted for cellular as a primary or failover connection because of the increased reliability, speed, security and flexibility that it can deliver over fibre broadband. For example, Cradlepoint has been working with Infoprotect to provide connectivity in Nando’s stores across South Africa, for its point of sale systems and digital ordering platforms.
Having a standard network across all of its restaurants enables Nando’s to support critical applications like online ordering platforms, experiment with new technology (e.g. connected cameras for customer behaviour analysis), and focus on streamlining operations, improving efficiency and customer experience.
Establishing wired connections can also take months, and moving a landline often involves huge expense, time and effort. In contrast, cellular connections can be deployed in a few short days, and can be as simple to set up as just plugging in a router. What was once considered as just a backup for wired networks, cellular is now an attractive alternative to fibre. Fixed wireless access is a key push for carriers to their enterprises and they are deploying managed services and attractive fixed pricing scenarios to support their enterprise customers.
Improve customer service and security
Cellular technology also supports systems that help eliminate long queues and enable merchants to operate more efficiently.
At GAIL’s bakery for example, its equipment such as ovens, fridges, and other appliances used to require huge amounts of energy to operate, and required store managers to constantly monitor them for any defects. However, Cradlepoint and KFP worked with the bakery to change this. Through cellular connectivity, GAIL’s stores can now operate smart appliances, significantly reducing the amount of power they require to operate dayto-day, and enabling staff to keep better track of what items sell quickly and when more stock needs to be ordered.
Cellular technology can also be used to enhance security provision and customer satisfaction through smart video cameras. One modern smart camera equipped with 360-degree vision and 4k resolution may be sufficient to replace three or four traditional cameras — reducing cost while improving coverage.
The bakery has also deployed other apps to analyse this image data to recognise when checkout lines grow too long, and automatically alert staff. In these situations, employees can open new registers and reduce the amount of time that customers have to wait in line — helping to improve overall satisfaction.
Ushering in the new era of retailing
Whether a store is looking to create thrilling new shopping experiences, implement new digital tools to boost operational efficiency, or simply ensure that its primary network connections are secure and reliable, the need for cost-effective and reliable high-speed cellular connections is only set to rise.
When it comes to developing the next generation of killer retail apps, retailers that start adopting emerging technologies like 5G connectivity now will be the ones that steer the course of the industry’s future.
