Retail Reinvented: How Omnichannel Retail Experiences are reliant on IoT Connectivity

The iconic department store Saks Fifth Avenue filed for bankruptcy in January, following in the footsteps of fellow luxury retailers Barneys, Neiman Marcus, and Germany's iconic KaDeWe that have all, to varying degrees, experienced financial difficulties in the past few years.

While industry voices are divided on whether this wave is due to individual circumstances or a wider public apathy for luxury shopping, it's clear that success in retail is far from guaranteed, regardless of brand recognition, history, or location.

Despite these high-profile closures and recurrent predictions that physical retail is on an inevitable downward trend, store openings are actually increasing. Today, brands are using digital sales to augment and improve their physical presence, rather than replace it. Online sales tactics and digital retail services are becoming increasingly common in store, as retailers adapt to the digitally-shaped expectations of their customers, a tactic known as omnichannel retail.

The term was first coined in a 2013 study from the MIT Sloan School of Management, where the authors envisioned a future in which location-based apps would encourage shoppers into brick-and-mortar stores, and smartphones would play a central role in the physical shopping journey.

Over a decade later, “omnichannel” has become a fundamental descriptor in the retail world, almost to the point of cliché. The term has embedded itself within the industry, spawning endless variations, from “harmonized” to “smart retail”.

Regardless of which term is currently in vogue, the underlying idea remains the same: physical retail brands have recognized the increasingly online habits of their customers, and have evolved to spread their services across multiple touchpoints, including stores, websites, and short-term locations.

While the current retail landscape may not perfectly match the vision laid out in 2013, the evolution of digital consumer habits has given rise to new in-store experiences: click-and-collect services are now ubiquitous, as are centrally controlled digital price tags and wireless POS terminals.

The growth of retail IoT

In 2018, Deloitte and the Wall Street Journal revealed that rising wealth inequality was driving much of the changing retail landscape: many consumers were no longer able to shop in their preferred stores, turning instead to discount retailers. Meanwhile, a small concentration of super-rich had more money than ever to spend in luxury boutiques. More balanced retailers, or those aimed at middle-income buyers, had been forced to adapt as their customer base was eroded. This divide has only grown since then.

A partial solution may lie in adopting digital sales methods in physical stores. By ensuring a reliable, swift, and convenient in-store experience, brands can save administration and energy costs across their network, passing the savings along to their customers. A 2021 study of the IoT market found that small and medium-sized enterprises were the fastest-growing adopters of retail IoT technology, indicating its increasing availability at lower budgets.

For shoppers, retail IoT devices can combine the ease of online shopping with the advantages of physical retail – provided they are supported by a reliable, fast, and secure wireless connection.

The connectivity behind omnichannel retail

Whether shopping in-store, online, or via mobile apps, consumers expect real-time information and seamless transactions. Reliable connectivity is now the invisible backbone enabling modern retail operations.

The IoT is fundamental to this new age. The medium encompasses all devices that communicate wirelessly – retail IoT concerns everything from NFC communication between a credit card and a terminal, to wireless security cameras, anti-theft tags, and supply chain logistics.

A wireless POS system removes traditional boundaries between cashier and customer. Employees can personally accompany customers throughout the store, up to and including the payment process. Wireless devices enable new store layouts, reduce bottlenecks, and remove the need for fixed queuing points and dedicated checkout areas.

Omnichannel retail IoT in action

When the eyewear designer Warby Parker opened its first brick-and-mortar store in 2013, it was already a $500 million business. The brand was founded as an online-only business in 2010; today, physical sales make up most of its revenue.

These spaces illustrate the power of multichannel retail in bringing attention to a brand and building long-standing, sustainable customer relationships. When deployed thoughtfully, omnichannel retail can augment the physical shopping experience and encourage return trips, rather than drive people to online-only purchases.

The tailoring brand SuitSupply provides another clear example: customers use the SuitSupply app to store their measurements and tailoring preferences with the company. They can then enter any SuitSupply store in the world and immediately receive a personalized service. This is further augmented by the iPhone mPOS systems carried by SuitSupply’s in-store teams, which allow them to remain by the customer's side at all times, including payment.

Comparison shopping

The adoption of multi-channel retail strategies by physical stores is a response to the reality of modern customer behavior: retailers recognized that, when facing an in-store purchase, shoppers will often consult their phone to view product reviews and even look for cheaper options online. This “comparison shopping” behavior is now a standard expectation in retail. As early as 2013, 70% of shoppers admitted to engaging in it.

New retail expectations

Omni-channel success starts with always-available connectivity. New retail formats are a result of evolving consumer expectations – today's retailers strive to provide customers with the convenience they expect from digital services, within a physical framework. From digital tools like tap-to-pay support, to AI-assisted inventory management, new technologies enable new customer experiences and clear the bar of convenience set by online marketplaces. By recognizing the strengths of both platforms and working to implement them in tandem, retailers can drive sales and boost customer satisfaction.

If a customer is shopping online for a particular product, an IoT-based inventory management system can determine whether that product is currently in stock, and notify them if so. This saves shipping fees for the customer and increases the likelihood that they complete their purchase at the store in question, rather than via a competitor.

Services like these are underpinned by real-time mobile data transactions and networks of wireless devices throughout the shop floor, warehouse, and wider supply chain. Modern retail depends on instant access to inventory data, pricing, and customer information.

The Role of Connectivity in POS, Digital Signage, and Inventory Synchronization

Retail IoT goes far beyond payment processing – in a modern store, wireless connectivity is incorporated into multiple stages of the shopping journey as well as backroom processes like inventory management and logistics.

“Smart retail” refers to the network of wireless sensors in stores and warehouses that use data and real-time feedback to optimize efficiency and improve the customer experience. This covers everything from intelligent shelves that can alert staff when they are nearly empty, to in-depth sales analysis programs. New applications are constantly being uncovered – smart cameras and sensors allow stores to construct sports-like “heat maps” of customers’ preferred walking routes, and adjust their layouts and shelving accordingly.

Seamless connections allow staff and customers to interact with digital services, ensuring smooth operations and accurate data across stores and online channels.

• Inventory systems sync data across warehouses, stores, and e-commerce platforms.

• Digital signage relies on connectivity for dynamic promotions and real-time content updates.

Digital Signage

As anyone who’s worked in retail will quickly attest, manually applying price labels is a Sisyphean task – particularly in high-volume stores and during sales periods where prices are continually adjusted. Digital signage promises to remove the human effort from this process, replacing label guns with arrays of screens that can be instantly and remotely updated. Beyond shelving, stores deploy digital signage to advertise deals, ease queuing, indicate free checkout lanes, and assist backroom staff with inventory management.

IoT-based strategies like digital signage rely on real-time data processing and transmission, controlled by a single source. For these systems to function, they require a constantly-on mobile data source with little to no risk of outages. This is particularly true for customer-facing interactions like payment processing.

Secure Retail Connectivity with 1GLOBAL POS Connectivity

Developments in the wireless industry have transformed the checkout process: third-party POS programs have enabled retailers to use mobile devices like iPads and iPhones instead of fixed POS terminals; connected checkout services allow the integration of new payment methods; and eSIMs have allowed retailers to take their POS devices anywhere with a mobile signal, paving the way for rapid expansion, new short-term-retail opportunities, and research into new markets.

Switching POS connectivity suppliers comes with a caveat: any new system must be protected against the event of a signal outage. When a retailer is contracted to a single mobile network and carrier, an outage in the in-store Wi-Fi or local mobile network will cause all connected systems to cease functioning. In the short-term, this immediately impacts revenue and discourages shoppers.

Long-term, system outages erode brand perception and limit growth. Failing to provide the one main advantage of physical retail – customer service – threatens the viability of a physical retail space.

Multinational retailers operating stores around the globe must also take extra precautions, as a network of disparate connectivity contracts in every country of operation can swiftly create considerable administrative and technical workloads.

IoT POS solution

The IoT POS connectivity service from 1GLOBAL minimizes that risk of downtime. By connecting all systems to the 1GLOBAL worldwide mobile network, stores are protected in the event of a network outage: if affected, the POS system will automatically reconnect to an alternative network, allowing business to continue as usual.

This service relies on 1GLOBAL's resilient worldwide network, which provides access to a minimum of two separate mobile networks in 190+ countries, across a total of 600+ carrier networks with our eSIM solution. For international retailers, this means a single connectivity agreement for all stores worldwide, constant POS uptime and versatile billing for ease of operation.

The analytics opportunities of retail IoT

While IoT technology drives customer-facing advances in brick-and-mortar stores, the same principles are also improving behind-the-scenes processes. More connected devices mean more data for IT administrators to work with, and more insights across every aspect of the supply chain and customer experience.

One well-known example is the use of customer data to create “dynamic pricing” models – strategies where retailers adjust their prices to reflect demand, rather than value, particularly in short-term contexts such as events or seasonal sales. High-profile examples like the FIFA World Cup ticketing fiasco have drawn public outcry (and a very slight U-turn), while Ticketmaster’s extreme application of the method during the 2025 Oasis tour prompted a public apology from the band themselves. Despite the criticism, the practice is still seen in physical and online retail during time-limited sales periods.

More benign is the use of real-time IoT data to inform and develop demand forecasting, where user behaviour and sales are analyzed to ensure stores have the inventory they need in response to the latest trends.

Trend forecasting is part art, part science – recent developments have provided a data-based bedrock for specialists to build upon. The discipline leverages AI’s ability to sift through and identify patterns across volumes of data previously inconceivable to analysts. This data is collected and collated by physical IoT devices in retail stores, while IoT device management platforms provide IT administrators with a unified overview of each device’s usage.

These real-time insights help retailers instantly respond to customer behavior and market conditions.

Integration with existing retail platforms

This far into the era of omnichannel retail, most brands already operate their own mobile device management (MDM) platforms that are deeply embedded in their wider software ecosystem. MDMs collate data from individual retail IoT devices and POS systems, and allow brands to control and manage these devices remotely. In multinational brands, MDM platforms are often deeply embedded within the company's software ecosystem, and any changes – such as adding a new connectivity partner – can be considerable challenges.

That’s why 1GLOBAL IoT services are API-based, allowing them to integrate directly with existing backend systems and MDM platforms. APIs allow retailers to add connectivity management to their ERP, CRM, and loyalty platforms, centralizing operations and analytics.

Not only does this simplify the integration of new retail IoT services, but it also provides retailers with a single overview of all connected devices, in all stores and countries of operation. Retailers gain a unified view of performance across physical and digital channels.

The future of retail IoT

The rapid evolution of omnichannel services and digitally-influenced physical sales illustrates how swiftly shopping habits can change. Retailers must understand this behaviour to enjoy continued success. Retail IoT can assist on two fronts:

1) by collecting and analyzing vast quantities of data to understand and predict customer needs

2) by delivering smoother, faster, and more attentive shopping experiences through new payment methods, queue management, and wireless POS systems.

As data standards like 5G and digital payment methods become more accessible worldwide, retailers need to widen their scope. An international retail IoT partner like 1GLOBAL provides connectivity in 190+ countries, with a minimum of 2+ networks per country. For multinational retailers, this means simple, global wireless connections, with minimal risk of downtime.

Learn more about 1GLOBAL IoT connectivity solutions, or contact us directly to discuss using 1GLOBAL services with your business.