The expanding role of 5G in retail

Since 5G first debuted in the late 2010s, it has gone from ancillary technology to a vital link that powers critical communications for industries worldwide. For retail specifically, it is both growing in popularity and showing a tangible return on investment. According to a recent industry report from Chain Store Age and IHL Group, 63% of US retailers will adopt 5G over the next two years. In addition, retailers who have adopted 5G claim an 8.3% increase in sales and a 21% higher profit growth.

But why is 5G so valuable to retail operations? When retailers combine public and private 5G with cloud-managed wireless edge solutions using modern security and traffic optimisation capabilities, they access a network architecture that provides a reliable, flexible, scalable and secure experience. Moreover, they can leverage 5G technology that can support end-to-end retail operations — from the warehouse all the way to a retail storefront.

Reliable, secure, flexible, scalable

Reliability

A 5G wireless wide area network (5G WWAN) connection, or any WWAN connection, provides reliability comparable to wired connections. However, the WWAN connection provides advantages by connecting over the air. Fibre and broadband connections may be subject to outages in construction zones and during natural disasters, making them unavailable for long periods. In developing areas, wired connections bear the time and expense of the conduit being laid underground.

In addition to deployment advantages, retailers also use cellular for its failover advantages. Retailers have leveraged the ability to use 5G as a failover link to keep their stores connected to continue sales and operations. According to a study from Tech Target’s Enterprise Strategy Group (ESG), WWAN can reduce downtime events by 60%¹. Additionally, by leveraging WWAN solutions with SD-WAN or quality of service (QoS) capabilities, retail organisations hold precise control over network traffic and ensure even higher network availability.

Security

For retailers, protecting PoS systems, remaining PCI compliant and ensuring that IoT devices are locked down are often top security priorities. With the right 5G WWAN infrastructure, retail operations can protect their networks with zero trust security that isolates both point-of-sale (PoS) systems as well as IoT devices by cloaking IP addresses and only allowing access by policy. While zero trust is not confined to cellular and 5G, it’s best to look for a vendor who also takes the nuances of cellular into account for SD-WAN, security and network slicing.

Flexibility

When retail operations leverage a cloud-managed wireless edge solution to support their LTE and 5G-enabled devices, those devices are much easier to deploy or relocate. This can include IoT devices, mobile devices, and even automated vehicles. Ultimately, retail operations get flexibility and speed in device deployment.

With a 5G WWAN approach, retail organisations benefit from faster network deployment. The ESG study shows that wired network deployments can take as long as four months², while cellular connections can be available the same day. With a cloud-based management solution for 5G WWAN, retail organisations don’t have to spend time, effort, and extra resources maintaining connectivity and security.

In fact, it’s much easier to implement network adjustments without requiring onsite network or IT staff. To simplify network management, the right network solutions will leverage artificial intelligence (AI) solutions that reduce the workload of the IT staff and make network maintenance much easier. This includes virtual assistant capabilities that provide easy-to-understand information about network performance and AI software that can pinpoint issues in performance and jumpstart remediation efforts.

Scalability

Many successful retail organisations are scaling their operations to meet customers where and how they shop. This scale requires supporting more mobile devices for staff and IoT devices in both stores and warehouses. 5G can uniquely extend its reach to areas that traditional connectivity methods can’t reach — all while providing reliable and secure communication. Organisations can methodically scale their operations without overburdening their IT staff by combining 5G WWAN or private 5G technology with a cloud-managed solution.

5G’s support of retail end-to-end use cases

Warehouse and logistics

Private 5G is proving to be an important part of warehouse and logistic operations on a global level. The control and connectivity of these networks are helping retail organisations support their automation, robotics, asset tracking, safety procedures, environmental sensors — all things that are essential to modern retail warehouse operations. With cloud-managed private 5G networks, retailers can leverage local networks with the reach, reliability, and security to keep these operations ongoing.

Stores

In today’s retail industry, customer experience reigns supreme. The modern consumer desires a retail experience that is streamlined, responsive and catered to their preferences. When retail stores leverage a comprehensive connectivity solution with diverse wired and wireless connections, they gain access to cloud applications that allow an always-on network.

Today’s customers also expect to maintain constant connectivity through their mobile devices while in the store. With a reliable and scalable 5G network, retail operations can provide shoppers with strong cell coverage that allows them to use in-store apps. In fact, the right network solution will allow stores to deploy cover extension architecture that is more flexible than traditional distributed antenna systems (DAS). In addition to improving the customer experience, this reliable coverage also allows retail operations to provide constant 000 access, enabling them to stay aligned with regular requirements.

It should also be noted that while consumers still continue to shop in physical stores, with 76% doing so at least once a month, according to Lightspeed, other shopping layouts also reach customers where they are. More and more retail organisations are leveraging store-in-store, temporary, seasonal stores and pop-up locations to enhance sales and marketing. With a cloud-managed 5G WWAN solution, organisations can quickly deploy and manage both pop-up and mobile networks and the devices on that network. Further, if those devices can use eSIM technology, they will be able to deploy devices in seconds — which prevents staff from having to spend unnecessary time manually installing physical SIM cards.

Logistics vehicles

Lastly, a cloud-managed WWAN network solution — one that leverages 5G as well as LTE, satellite, and Wi-Fi — allows retail operations to manage applications and network connectivity for those vehicles from any location. This is extremely important for applications that ensure order fulfilment, asset management, and driver and vehicle telematics. In other words, constant and secure connectivity ensures each vehicle is where it’s supposed to be, delivering the items it’s supposed to deliver.

Adding satellite connectivity is extremely important for organisations whose vehicles travel through rural areas. Although cellular phones cover over 99% of populated areas, satellites are more reliable in less populated rural areas. Leveraging an SD-WAN solution that can intelligently switch between Wi-Fi, 5G, LTE, and satellite transport types will allow logistics vehicles to stay connected, whether going from the warehouse to the store or delivering to a customer’s home.

Connecting an entire retail operation

In 2025 and beyond, network downtime could have unprecedented costs for retail organisations. Any break in connectivity could cause customer dissatisfaction, employee frustration, or even regulatory repercussions. Leveraging public or private, cloud-managed 5G solutions will help retail businesses avoid these consequences. No matter where or how each retail organisation operates, implementing 5G to provide strong and secure connectivity is the best way to keep the entire business moving and stay ahead of the competition.

<sup>1. Enterprise Strategy Group 2024, Analyzing the Economic Benefits of Enterprise Cellular Solutions in Branch Locations, white paper, p. 8.
2. ibid. p6.</sup>

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