RSR and Extreme Networks: Wi-Fi Boosts Retail Success

Extreme Networks™ and Retail Systems Research (RSR) have jointly unveiled a new report titled “The World is Connected: The Store Must Be Too.” The report reveals that retailers face significant challenges in developing innovative in-store experiences that align with consumer expectations, managing escalating network bandwidth demands, and mitigating emerging cybersecurity threats. Despite 75% of survey respondents expressing concern about network bandwidth demands, the study highlights that the most successful retailers are leveraging Wi-Fi solutions to enhance both in-store experiences and overall store operations. The survey encompassed 114 executives overseeing global retail operations with annual revenues ranging from $100 million to $5 billion or more.

Key Findings and Trends:

1. The In-Store Experience is Crucial:
   • 92% of retailers consider Wi-Fi integral to delivering a cutting-edge in-store shopping experience, with 54% stating a significant improvement in in-store experiences.
   • Only 32% of retailers describe their Wi-Fi network as state-of-the-art, while 57% consider it “good enough.”
   • Wi-Fi is utilized by 72% of retailers to drive store operations.
2. Technology Adoption Presents Challenges:
   • 94% of retailers note endless demand for bandwidth on their constrained networks, posing challenges to technology adoption, with 75% identifying this as their top challenge.
   • 88% of retailers struggle with adding and managing new devices on the network.
   • While 72% desire a single network capable of handling future devices and deployments, only 17% aim for a consistent technology profile across all stores.
3. Opportunity Arises:
   • 96% of retailers credit Wi-Fi for instrumental improvements in store operations, automating processes such as virtual warehousing, loss prevention, electronic shelf labeling, digital displays, temperature monitoring, and inventory management.
   • Prioritized technologies to enhance store operations include corporate WAN (66%), network-connected IoT devices (65%), and inventory management tools (62%).
4. Retailers with Above Average Sales Growth Invest Strategically:
   • Winners, defined by above-average YoY sales growth, approach technology differently compared to retailers with average or lagging sales.
   • 63% of Winners attribute in-store Wi-Fi to improved customer order fulfillment and returns handling, in contrast to 26% of other retailers.
   • Winners prioritize cashierless checkouts (70%) and self-service kiosks (66%) after Wi-Fi, whereas other retailers prioritize them less (41% and 43%, respectively).
   • 55% of Winners successfully implement in-store Wi-Fi for consumers, surpassing the 31% among other retailers.

Executive Perspectives:

Brian Kilcourse, Managing Partner, Retail Systems Research, emphasizes that successful retailers strategically leverage Wi-Fi to address challenges related to employee communications, merchandise management, and meeting consumer demands for modern and dynamic in-store experiences. This investment positively impacts both the top and bottom lines of their business.

Norman Rice, Chief Operating Officer, Extreme Networks, asserts that the research underscores the transformative impact of technology on creating engaging in-store experiences, contributing to improved financial outcomes. Extreme Networks assists retailers in establishing the store of the future, positioning the network as a strategic hub for experiences and efficiency, encompassing aspects such as connecting temperature sensors, automating electronic shelf labels, and delivering real-time offers through store apps. The connected store is not just the future; it is the present.