< PreviousWHY THE IOT IS KEY TO THE UK RETAIL SECTOR’S POST-COVID RECOVERY T he forthcoming wave of vaccinations promises to restore the UK’s economy to a more stable position. Nonetheless, we must consider the possibility that changes in consumer behaviour may linger even when lockdowns and social distancing are a thing of the past, as well as how different sub-sectors within the industry will be affected. Let’s look at two opposing, but equally possible scenarios on the road ahead. Scenario A – Opening the floodgates After months of being cooped up at home, customers flock to town centres, industrial parks and shopping centres to exercise their freedom to purchase goods in-person. Sales volumes increase, but supply chains become stretched due to spikes in product demand and store inventories become more difficult to effectively manage. In addition, disruption to both the need and availability of workers in the months prior leaves stores understaffed, leading to long queues and disgruntled customers. Finally, customers who for months have been encouraged to go cashless are now making far more card and contactless payments, leaving some POS systems struggling with the uptick in data traffic and leading to more frustration for staff and customers alike. Scenario B – The high street ghost town For many, shopping online during the pandemic switched from something people wanted to do to something people needed to do. As a result, those who were previously sceptical or unfamiliar with technology (or who simply preferred shopping in-person) had to familiarise themselves with the process. Of course, although many within this group may still be averse to e-commerce today, we must assume that at least some will use their newfound familiarity to continue shopping online in the post-Covid era. In this scenario, customers new to e-commerce have been swayed by the user-friendliness, low prices and fast delivery on offer online. As a result, footfall on the high street struggles to recover to pre-pandemic levels, creating RETAIL RECOVERY According to the latest ONS figures, the impact of Covid-19 restrictions on the physical retail sector has been mixed. Stores selling hardware, paints and glass, for example, saw a 13% increase in the value of retail sales compared to last year. Others have been hit particularly hard – with clothes store sales down by more than a quarter (26%) in the same time frame. JAMES BRISTOW SVP EMEA CRADLEPOINT 10KIOSK AND DIGITAL SIGNAGE MAGAZINERETAIL RECOVERY 11 KIOSK AND DIGITAL SIGNAGE MAGAZINEa tough environment for the small independent retailers who compete with the online giants. Preparing for every outcome While these two scenarios are diametrically opposed, the Internet of Things (IoT) could help address some of the issues described in both situations. Comprising a dynamic network of sensors, devices and equipment, the IoT makes it possible to view and interact with physical objects as easily as files and folders on a computer. In other words, the IoT creates a digital overlay that sits across the physical infrastructure of retail stores, effectively facilitating the agility of online shopping in a physical space. It will require investment, but securing the future is a goal that pays dividends. Here we look at the solutions the IoT has to offer in these two scenarios. Solution A – Unlocking efficiency at every stage of the supply chain. Preparing to mitigate the negative outcomes in this scenario requires retailers to take a hard look at the systems they have in place, identify areas in urgent need of greater efficiency, and implement new IoT tools to address them: Real-time supply chain – inventory sensors and POS data are integrated into a direct communication system with supply chain partners, triggering automated manufacturing and production systems and adjusting stock delivery schedules accordingly. Data-driven decisioning – capacity sensors linked to data analytics platforms not only track the number of customers in-store, but analyse seasonally-adjusted data relating to the length of time customers spend in the aisles and predict where and when staff will be needed. Robotic process automation (RPA) – from processing supplier deliveries to quarterly stock counts, RPA systems automate time-consuming tasks that happen behind the scenes, freeing up staff time for better workforce scheduling and more focus on customers. Solution B – In-store customer experience unmatched by online retailers. Innovations such as live product tracking and same day delivery have recently tipped the customer experience race in RETAIL RECOVERY Customers new to e-commerce have been swayed by user-friendliness and fast delivery 12KIOSK AND DIGITAL SIGNAGE MAGAZINERETAIL RECOVERY Stores must emulate the dynamic, digital and personalised experience offered by their online counterparts 13 KIOSK AND DIGITAL SIGNAGE MAGAZINE favour of online retailers. To attract new customers and retain their business, brick-and-mortar stores must emulate the dynamic, digital and personalised experience offered by their online counterparts: Interactive digital displays and kiosks – positioned at the store entrance, customers can benefit from an optimised in- store journey and a highly personalised experience by viewing commonly bought items, their location within the store and in-the-moment marketing offers based on purchase history. Roaming POS – queuing is eliminated as tablets carried by staff process customer payments anywhere in the store. In addition, RFID scanners built into trolleys and baskets can total large volume purchases in real-time, without needing to take a single item out to scan. Customer application integration – in-store geotargeting systems can link via Bluetooth to customer-facing smartphone applications to help locate specific items and provide other useful pieces of information, such as stock levels, current offers and the location of staff. LTE and SD-WAN branch networking – laying the foundations for the future of physical retail. Regardless of which scenario becomes a reality, any subsequent IoT strategy must begin with a reliable, secure and agile network. The first step is cutting the cord with fixed broadband connectivity and setting up a private in-store network running on LTE. Also known as wireless WAN (WWAN), this solution offers retailers greater levels of flexibility thanks to out-of-the-box connectivity and unparalleled reliability through multiple network channel management. The second foundational requirement for retail IoT is SD- WAN. With the sheer quantity of network applications running in most branches, cloud monitoring and troubleshooting features – including automated alerts – SD-WAN enables retailers to cost-effectively manage WAN conditions at widespread locations. Crucially, SD-WAN also allows secure VPNs to be established in a matter of minutes, providing robust protection for devices and sensitive information, such as customer payment data. Survive and thrive in the future of retail The past year has been an uphill struggle, not least for retailers contending with limited footfall in their physical stores. Investing in new technology may not be top of mind for all retail businesses in the immediate future. But for those who are able and willing to innovate may find they are able to unlock efficiencies in their supply chain, improve their in-store experience and attract and retain new customers once lockdown restrictions start to ease.DIGITAL TRANSFORMATION 14KIOSK AND DIGITAL SIGNAGE MAGAZINEW ith the COVID-19 pandemic causing consumers to alter how they shop for, pay for and receive purchases of all kinds, retailers around the world have been required to rapidly adjust their tried-and- trusted business models to meet the changes to consumer buying habits. Retailers that were well on their way to digital transformation have been more adaptable to the shifting needs of their customers and, even post-pandemic, retailers who have invested, or are investing, in digital capabilities will be better positioned to create customer experiences that will help them stand out, using technology-based strategies. Moving forwards, however, retailers will need to support these future strategies by implementing a connectivity foundation that is more secure, more scalable and more reliable than the traditional MPLS model. For any retailer with more than 100 employees and more than five locations, software-defined wide-area networking (SD-WAN) can provide the connectivity backbone that allows business workflows to remain agile and perform optimally. SD-WAN can connect dispersed locations over multiple geographical locations and use the best network route available at any given time, so it allows different types of network traffic to be prioritised as needed. This provides for redundancy and a seamless user experience, but it also allows retailers’ networks to be more dynamic. For example, using a combination of managed wireless and IP connectivity with SD-WAN instead of purely MPLS can lower or eliminate circuit costs for retailers operating in a mix of rural and urban markets. Diversity of managed communications, combined with the intelligence of SD-WAN, can improve cost and uptime, which reduces the risk that POS terminals will go down and so the business is not interrupted. It can be layered on top of any connectivity solution to securely connect users with applications, including those in the cloud. SD-WAN offers retailers the connectivity capabilities they need for in-store and e-commerce digital transformation initiatives. Here are five digital strategies it can support: 1: Free Wi-Fi for customers which merchants can use to gain insights Not all consumers will return to shopping in physical stores, however, it is likely that most of them will. After all, plenty of people like to see products in the flesh, browse, find deals they might not see on a website, or just get out of the house. Wherever they go, consumers will expect to have connectivity, which means free Wi-Fi is becoming a must-have for retail sites. SD-WAN allows retailers to securely add on a free Wi-Fi solution for customers without DIGITAL TRANSFORMATION TOP FIVE WAYS RETAILERS CAN DIGITALLY TRANSFORM Enabling merchants to enhance the customer experience and stand out from competitors with these digital strategies— now and in the future JOHN TAIT GLOBAL MANAGING DIRECTOR TNS PAYMENTS MARKET 15 KIOSK AND DIGITAL SIGNAGE MAGAZINEaffecting the connectivity layer that supports payments terminals or other digital initiatives in a store. And this free Wi-Fi isn’t just a perk for customers, retailers can harness analytics from the Wi-Fi to obtain valuable insights about shoppers’ patterns, behaviours and preferences. For example, Wi-Fi analytics can tell retailers whether the customer is a first- time or frequent visitor. Wi-Fi analytics can show how much time a shopper has spent in the store and where in a store they spent it, as well as aggregate data about overall shopper behaviour. This aggregate data allows retailers to revamp their store layouts to increase sales by highlighting popular items (or placing less popular items near better- selling ones) or placing promotional or add-on purchases near frequently travelled areas. 2: Digitally connect with customers Even if some consumers aren’t physically coming to a store, they still want expert opinions, which has led to some retailers implementing digital concierge services. Consumers can ask questions and view options via video conferencing, giving them the same white-glove experience they’d benefit from in a physical store. This trend may continue after the pandemic, especially for products that require highly specialised knowledge. SD-WAN can help manage high- bandwidth applications such as live video and clear audio and video by optimising network traffic, so retailers can use their best experts to virtually help customers all over a region rather than staffing people at every location. Other retailers have moved away from “try-before-you-buy” tactics for safety and hygiene reasons and towards augmented reality (AR) solutions. For example, some beauty stores no longer allow customers to try out a new lipstick shade by applying a sample to their lips. Instead, stores can use AR mirrors that show the customer what the lipstick looks like on them — touch- free. Delivering responsive, smooth AR requires both sufficient capacity on the network and the ability to manage traffic, to protect the AR traffic from jitter and packet loss. 3: Accept and securely support omnichannel payments Consumers haven’t stopped buying, but they have changed the ways they shop and pay for goods, with many turning to e-commerce, mobile apps or curbside pick-up. This new desire for a variety of payment and buying options isn’t going away, and retailers must deliver on it. SD-WAN’s ability to expand connectivity over a wider area allows retailers to take payments in more places — outdoor terminals, pay-at-the-pump options, self- service kiosks and even via mobile POS terminals, like tablets. While flexibility in where and how payments can be processed is ideal for the consumer, it can create cybersecurity risks. This is because more payments devices mean more points of interaction to and from apps or internet breakout. Proper security controls, especially for payments, are critical. With SD-WAN retailers can securely connect all types of payments options, as well as any other devices and networks within a retail environment. Depending on the equipment and/ or vendor, SD-WAN can also protect sensitive personal and financial data and traffic, which is key for the retail industry. Regulatory compliance with PCI DSS security credentials is, of course, also critical within a retail environment, and some SD-WAN solutions available today have been designed to incorporate PCI DSS requirements. 4: Rethink store layouts using smart cameras Today, catching break-ins and providing surveillance aren’t the only reasons for using security cameras. New always- streaming smart devices can capture shopper patterns that can drive strategy and improve decision-making. Retailers can see what’s happening at their physical locations, observing foot traffic patterns and gauging customer reactions to learn more about shoppers’ preferences and their intent to purchase. Cameras can yield actionable insights to improve in-store offerings, maximise the placement of sales associates and in-store displays and even develop individual promotions. While tying these into a store’s analytics and network means there are even more devices on a retailer’s network, SD-WAN allows retailers to manage traffic to avoid a network from overloading. 5: Optimise the supply chain and inventory systems The supply chain issues that some retailers experienced earlier in the COVID-19 crisis demonstrated the importance of being able to efficiently manage supply chains. Especially as shoppers demand more e-commerce options and faster delivery, retailers must be able to quickly perform inventory checks, automate orders for high-demand stock, and track orders in real-time. SD-WAN can help retailers streamline operations and eliminate any network downtime, so all systems stay up and running. What’s more, many retail giants have started blending their stores and their inventory centres, indicating the lines between brick-and-mortar and e-commerce will become even more blurred. For example, big EU-5 retailers such as Tesco and Carrefour have expanded online with in-store DIGITAL TRANSFORMATION 16KIOSK AND DIGITAL SIGNAGE MAGAZINEDIGITAL TRANSFORMATION 17 KIOSK AND DIGITAL SIGNAGE MAGAZINE inventory, while Amazon — the original e-commerce company — has been rolling out physical stores in select cities. The good news is that you don’t have to be a global brand to exploit the advantages of connecting your business over SD-WAN. SD-WAN helps mid-sized merchants who want to set up a mobile order/e-commerce fulfilment centre, a ghost kitchen to expand service areas or a seasonal kiosk location to test demand before committing to real estate. SD- WAN allows retailers to interconnect these new channels and locations in days rather than months through the fast deployment of equipment and connectivity. This means retailers can gain a larger yet flexible footprint without committing to another fully outfitted customer-facing storefront. And by prioritising bandwidth-intensive retail workloads, such as retail analytics and inventory systems, SD-WAN can improve bandwidth efficiency and optimise inventory operations and productivity. Get ready for a new future Retailers need to simplify, secure and improve their network across all branches and locations to support continued digital transformation; remain agile in the face of change; and improve in-store and e-commerce customer experiences. SD-WAN can consolidate point solutions, simplify network management, provide visibility into data applications, and support new bandwidth-intensive digital strategies — all while supporting business-critical applications. However, some retailers may be challenged to implement this technology, either because their in- house IT staff doesn’t have the time, or because they don’t have in-house IT. Fully managed solutions can help in this instance. They remove the hands-on work of deployment while giving a business all the capabilities of SD-WAN, allowing retailers to focus on transforming the customer experience, not their network. The lines between brick-and-mortar and e-commerce have become even more blurredA s AI continues to evolve, perceptual user interfaces, such as voice and gesture recognition, have become the latest in the race to create the next great interactive experience. Proponents of these new technologies tout them as alternatives to touch systems, highlighting the fact that users can effectively interact with a computer without the use of hands. But, in our fast-changing world, where new tech lives or dies based on the user experience, will voice and gesture actually replace today’s ubiquitous touch systems? Or, will they ultimately join the ranks of Blackberries and Palm Pilots and fade into obscurity? Fortunately, neither will happen. In fact, we’re on the precipice of a new era of technology, where we can now bring together voice, gesture and touch for an entirely new user experience which harnesses the best of each interface. While there’s much excitement surrounding voice and gesture right now, touch will likely maintain its dominance in the marketplace and serve as the backbone of these new hybrid technologies. Why? Several reasons account for it, including the fact that touch is the most intuitive interface, likely because touch is the first sense we develop, and it plays a fundamental role in our development as human beings. And the reality is, people naturally gravitate toward objects, surfaces and materials they can touch or manipulate with their hands. The current and next generation of young people entering the workforce are already primed and expect touch capabilities. Their widespread use of touch in the way that they interact with information hasn’t gone unnoticed as major corporations across the globe scramble to integrate touch into the workplace. But it’s not just corporations. Nearly all retail stores offer some version of a touch system, from POS systems and informational displays to interactive product catalogues and many other use cases. Still, touch can’t do everything, and that’s where voice and gesture will play key roles in making the technology more intuitive and instinctive. With voice, for instance, we’ve seen the progression from Siri, Alexa, Google Assistant and Cortana, all of which have been immensely popular—an indicator that future voice innovations will have a healthy marketplace of buyers. Voice-recognition is based on Natural TOUCH SYSTEMS In our fast-changing world, where new tech lives or dies based on the user experience, will voice and gesture actually replace today’s ubiquitous touch systems? Or, will they ultimately join the ranks of Blackberries and Palm Pilots and fade into obscurity? GENE HALSEY TES AMERICA VICE PRESIDENT PRODUCT & BUSINESS DEVELOPMENT 18KIOSK AND DIGITAL SIGNAGE MAGAZINE TOUCH, DON’T TOUCHTOUCH SYSTEMS 19 KIOSK AND DIGITAL SIGNAGE MAGAZINE Touch can’t do everything, and that’s where voice and gesture play key roles in supplementing the technology to make it more intuitive and instinctiveNext >