Executive Brief

Spur digital growth with a connected retail ecosystem

Build a highly resilient networking architecture for the future

Consumer expectations continue to grow, for both the online and the in-store experience. Any stoppage in service or availability can seriously impact the revenue and reputation of today’s margin-sensitive retail businesses. Should a retailer experience an unanticipated setback or delay, they must be ready to respond quickly and decisively. Every website, every application and every brick-and-mortar store must be protected.

This unavoidable reality is placing considerable pressure on retailers to digitally transform their businesses. They must modernize and implement strategies and solutions that support and strengthen their resiliency and business continuity. Equipping the company to swiftly recover from disruptions is a vital feature of sustained growth and ongoing competitiveness.

76% of retail executives said in spring 2024 that they planned to increase their company’s technology budget over the next 12 months.¹

The push for digital transformation

A retailer’s competitive edge is centered on customer experience. Once a straightforward objective — offer superior service in the store — that goal now spans a range of locations, platforms and media, from the physical world to the digital one. Companies feel the urgency to find and implement new and better ways to enhance the retail customer experience. More than ever, this requires turning to innovative technology, including 5G, the Internet of Things (IoT), mobile edge computing, AI and machine learning (ML).

Consumers who use mobile apps for in-store research²
65% – All age groups
75% – Gen Z and millennials

Consumers expect simplicity and convenience across their interactions with the brand. They increasingly look for cashless, frictionless transaction options such as buy online, pick up in-store (BOPIS); buy online, return in-store (BORIS) and buy online, pick up at curbside (BOPAC). Retailers feel the pressure. They understand they must deliver a seamless, secure experience tailored to the customer’s preferences and buying history. Shoppers may also expect kiosks, tablets or touchscreens connected to inventory or point-of-sale (POS) systems that allow them to quickly find product pricing, location and availability details. Employees are likely to expect the same. Nearly 40% of top-performing retailers identify as a top-three challenge the fact that their existing technology is not up to the challenge of today’s tech-savvy customers and employees.³

133%
The amount by which business leaders expect to increase investment on digital customer engagement by 2027.⁴

This push has helped grow investment in omnichannel capabilities, personalization and advanced analytics. As new technologies are integrated to address these needs, companies are also gathering ever-larger volumes of data. For example, the data moving through a POS system makes them a vital part of commerce and data management, underscoring the importance of high-performing networks. By unlocking the insights in this data, retailers can personalize customer interactions through targeted products, offers and touchpoints and post-sale support. Nearly half (48%) of consumers say they’ve made a repeat purchase from a company based on the level of personalization they received.⁵

Increasing reliance on technology raises risk

Retail IoT, AI, e-commerce and connected supply chains are a few of the innovations that have helped usher in a new era of opportunity for retail. Greater efficiency and productivity, lower operational costs and enhanced visibility and intelligence account for just some of the benefits companies can achieve as they incorporate these solutions into their business. The technologies do not, however, come without compromises and challenges.

$3.48M
The average cost of a data breach for a retail organization as of 2024, an increase of 17% from the previous year.⁶

Growing cybersecurity vulnerability

The embrace of digital business and the migration to the cloud also increase brands’ retail cybersecurity vulnerability. As companies transform and move beyond the safety of their private networks, they expand the available attack surface, affording cybercriminals more avenues to exploit. The results can be devastating: lost sales, imperiled data and damaged brand reputation. Research shows that protecting customer data is the top driver of brand trust across every generation.⁷

Distributed denial of service (DDoS) attacks

The retail industry also finds itself a common target of DDoS attacks, which can render applications as well as network and Web properties unavailable to employees and customers for hours, even weeks. This downtime can be costly to the brand’s bottom line and reputation. Physical breaches at stores or warehouses can similarly halt business operations and do serious damage to the brand.

The challenge of lean IT teams

Complicating matters further for retailers is the fact that their IT teams are increasingly overburdened and under-resourced. These same teams may also face an IT skills shortage that complicates efforts to integrate, manage and make the most of each new piece of technology. The solution or system becomes yet another line item in an already lengthy list of complex demands.

Customer personally identifiable information (PII) is the most common type of data stolen or compromised.⁸

Three key steps to a resilient retail infrastructure

Given the challenges and risks that come with adopting new technology, retailers are making an investment in business resilience. To support the effort, many are turning to a managed network services provider for guidance and assistance. The right partner can help address three fundamental requirements to building a resilient retail infrastructure.

Step 1: Improve connectivity

Secure, reliable connectivity is crucial to realizing the many benefits offered by new retail technology. The right solutions make it easier to gather, manage, secure and analyze customer data, enabling companies to understand and respond to customer needs faster for a better experience. Improved connectivity also provides other benefits, from better inventory tracking to fewer billing problems and delays.

More than half of consumers say they would like to use virtual assistants, augmented or virtual reality, and AI applications as they shop.⁹

Step 2: Meet evolving IT demands

In an omnichannel world, retailers must manage a variety of pressures, some originating in their brick-and-mortar environments, others with their e-commerce customer experience. In 2024, e-commerce sales accounted for over 16% of total retail sales.¹⁰ As the technologies and needs change, so too do the remedies and prioritization, requiring IT to be nimble and knowledgeable about the business and the solutions it relies on.

Less than 10% of customers say they’re satisfied with the current in-store shopping experience.¹¹

66% of consumers check product availability before going to a physical store.¹²

Step 3: Reduce latency

Retail relies heavily on low-latency connectivity to support a host of operational and brand goals. Companies benefit from access to real-time customer trends revealed by IoT devices, including everything from foot traffic to buying trends and purchase patterns. A low-latency network is essential to maintaining real-time data analytics with AI and successfully implementing retail automation to streamline inventory tracking, reorder processes and demand forecasting.

Spectrum Business^® is your retail resiliency partner

Working with one trusted partner, retailers can build a highly resilient networking architecture for the future. Spectrum Business can help retailers move faster, reduce total cost of ownership, strengthen security and enhance the experience of employees and customers. Our reliable, secure and enterprise-grade services can be fully or co-managed to meet business requirements. The Spectrum Business portfolio combines managed services, enterprise cloud services, security services and connectivity services with the technologies retail organizations need to thrive, all backed by 100% U.S.-based support, available 24/7/365.

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