5 ways to power retail performance with 5G

From omnichannel disruption to supply chain challenges to Covid-19 shutdowns and rising operational costs, it feels like there’s been an endless number of hurdles to navigate.

But as is often the case, tech has been helping retailers overcome these challenges. And with the emergence of 5G connectivity, there’s a new set of opportunities on the table.

5G has fast become integral to consumers’ lives – but in retail business, the true power of 5G remains largely untapped. Over in the US, only 13% of retailers [1] have dipped their toes into 5G waters. Although there are no exact figures for the uptake of 5G among the UK’s retail and wholesale industry, it’s safe to say that many are yet to take advantage. Despite this, 72% of retailers and wholesalers expect 5G to have a transformative or significant impact on the development of new products, services, innovations and operations in their organisations.

Let’s take a look at how retailers and wholesalers can drive performance with 5G. We’ll start with the more straightforward applications – and move on to some of the more exciting, future-facing possibilities.

5G networks can improve in-store experiences for customers. For example, with 5G networks in place, sales assistants equipped with mobile tills can assist customers directly, minimising the need for customers to wait in long checkout queues – something 68% of consumers [2] cite as a reason for not shopping in-store.

5G can also be used to transfer real-time data, empowering retailers to maintain a dynamic flow of inventory updates. Staff can gain instant access to accurate stock data, so they can answer customer queries quickly without wasting fifteen minutes ‘looking in the back’. This real-time inventory visibility also powers the ability to offer ‘order online, pick up in-store’ options, providing customers with more convenience and driving in-store sales.

Not only are inventory management and customer satisfaction directly linked, but so are inventory management and sales. According to one study, 60% of the inventory records are likely to be wrong at any point in time. Correcting these errors can boost sales by up to 8%.

Even if you’re primarily an online retailer, pop-up shops are a great way to amplify brand visibility, engage new audiences and trial concepts without the commitment of a permanent store.

Pop-up shops are a great option for medium retailers in particular. After all, many have enough online presence to lure in customers and are ready to bring their brand awareness to the next level. With this in mind, they can benefit from the sense of urgency, exclusivity and curiosity sparked by temporary retail spaces. As recent research found [3], 46% of brands who trial pop-up shops report an increase in sales, 51% benefited from a rise in market visibility and 66% enjoyed greater brand awareness.

That said, retailers often struggle to implement the connectivity required for pop-up shops. By their nature, pop-up shops are temporary entities that need to be set up and taken down quickly, and conventional broadband just isn’t that flexible. For this reason, pop-up retailers often have to make do with little or no connectivity.

But 5G broadband is flexible. Retailers can plug in and set up connectivity in these spaces almost anywhere, regardless of fixed lines. This flexibility maximises location options and ensures seamless payment processing and online integration – essential for meeting the high expectations of today’s consumers.

5G isn’t just about changing the experiences of consumers. It can also play a pivotal role in improving general operational efficiency, especially for wholesalers.

When wholesalers harness the power of 5G, they can revolutionise their operations through network sensors – a type of Internet of Things (IoT) device. These sensors provide real-time monitoring of stock levels (ensuring optimal inventory management) and can help with asset location and tracking of goods too. They can also play a crucial role in maintaining the integrity of temperature-sensitive goods, as they can alert staff if fridges or storage units are left open – preventing spoilage and waste.

But the tech extends beyond simple monitoring. 5G enables swift data transmission, empowering wholesalers to make informed decisions promptly. By ensuring stock levels are optimal and perishable goods are preserved, wholesalers minimise losses and ultimately improve their bottom line.

Heading back to the world of in-store shopping, retailers can use 5G to revolutionise the way they engage customers through personalised in-store advertising.

5G networks reduce latency by 80% [4], resulting in much faster load speeds and impressive improvements in geo-location capabilities. Thanks to this, retailers can send tailored ads directly to customers’ devices, and offer highly relevant promotions based on customer preferences and shopping history.

As customers wander around a store, their smartphones will receive personalised offers – something that can enhance engagement and drive sales. Harnessed correctly, this will help retailers use ads to strengthen customer relationships, increase brand loyalty and create a shopping experience that aligns with individual needs and desires. As a recent survey found, companies with faster growth rates derive 40% more [5] of their revenue from personalisation than their slower-growing counterparts.

With the high-speed, low-latency capabilities of 5G connectivity in place, retailers are poised to unlock a new world of shopping experiences through augmented reality (AR) and virtual reality (VR).

What would this look like in practice? Larger businesses are already leveraging AR to shoppers virtually try on items and visualise interior design decisions, and there’s no reason why medium-sized retailers can’t follow suit. However, the network connectivity underpinning these innovations must be ultra-fast and ultra-reliable or risk leaving consumers frustrated.

5G’s rapid data transfer ensures these experiences are fluid and lifelike, elevating customer engagement and satisfaction. By blending the physical and digital worlds, retailers can create unforgettable moments that redefine in-store shopping. This is particularly important at a time when bricks-and-mortar retail is struggling to deliver strong profit margins.

Not convinced? A report by Accenture [6] found that just a 1% increase in the use of AR/VR in retail could lead to additional sales opportunities worth $66 billion – a compelling argument for getting on board.

5G is set to revolutionise the retail sector. With 5G connectivity in place, retailers can reimagine their business models, amplify customer satisfaction, and achieve success despite the challenges they face.

But to realise the potential of 5G, retailers need to have the right connectivity partner. Three Business, the UK’s Fastest 5G Network [7], is already providing 5G power to 500,000 businesses up and down the country. With flexible contracts and plans, our dedicated team of advisors are at hand – ready to boost your connectivity, streamline your comms and unlock your team’s potential. Interested?

Learn more about how we can boost your connectivity, streamline your comms and unlock your team’s potential.