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What “AI/IoT-Ready” Really Means on the Shop Floor - a New Perspective for Retailers

What “AI/IoT-Ready” Really Means on the Shop Floor - a New Perspective for Retailers

The retail playbook has been fundamentally rewritten. Customer journeys are omnichannel by default, IoT sensors are now omnipresent in both warehouses and shop floors, and AI is moving from pilot to P&L at an unprecedented pace. And the results are already proving transformative: 

  • Time-to-open: New stores and pop-ups are networked, secured, and POS-ready in days, not weeks.
  • CX becomes predictive: Personalised offers and staffing respond to real-time signals, not yesterday's batch.
  • Shrink is minimised: Vision-based loss prevention, plus better on-shelf availability.
  • Cost-to-serve falls: Energy, logistics, and labour are optimised by rich streams of real-time date.
  • Audits are boring (in a good way!): PCI and security postures are continuously and consistently maintained across estates and partners. 

 But in the race to access all these potential benefits, the winners aren't the ones with the flashiest demos – they're the ones with a rock-solid digital foundation that lets AI and IoT platforms scale safely, securely, and intelligently, store by store.

So, from Exponential-e's vantage point across Cloud, connectivity, cyber, and communications, and our ongoing conversations with top retailers across the UK, here's what "AI/IoT-ready" actually means for the sector, and how we can begin laying those all-important foundations…

A network built for real-time, store-level intelligence

IoT and AI thrive on low latency and high availability, particularly when Point of Sale (PoS), inventory, and computer-vision workloads are increasingly interconnected. That means the underling WAN stops being a cost line and becomes a growth platform. Frictionless shopping experiences, incorporating queue-free checkout, real-time offers, and dynamic pricing, depend on fast, reliable data flows at the edge.

Software-defined networking, built on a private VPLS core, makes this practical at scale, offering centralised control, application-aware routing, seamless use of diverse access (i.e. ethernet, 4G/5G), and integrated security. Beyond the immediate operational advantages of avoiding hairpinning over the public internet and low, predictable latency, such networks offer the scalability and agility needed for pop-ups, seasonal peaks, and new store openings, where day-one uptime and policy consistency are required.

This should be complemented with enterprise IoT/M2M SIMs that deliver multi-carrier access and centralised control for store sensors, handhelds, lockers, smart signage, and similar devices.

Cloud and edge compute as a single, unified platform

 AI-assisted retail is a hybrid sport: heavy training and data engineering in the Cloud, instant inference and control at the edge. To this end, retailers pursuing "always-on", augmented stores are converging 5G, IoT, and AI with edge compute to deliver truly personalised experiences in the moment, not hours later. This next-gen local processing, with edge computing implemented in every store, delivers a seamless PoS for customers, while simultaneously optimising staff's efficiency and reducing backhaul costs.

In the longer term, centralised data platforms and AI services can crunch multi-store telemetry for demand forecasting, replenishment, and customer analytics, offering a rich stream of actionable insights that enable reduced energy usage, automated restocking tasks, and smoother labour scheduling - immediate, powerful operational wins.

These capabilities can be developed into a standardised model and then be deployed, managed, and scaled consistently across new sites as retailers expand their operations. It's no surprise that multiple European retailers are already doing exactly this to not only protect their immediate margin and availability, but also accelerate their future growth plans.

Embracing the 'secure by design' model

 Retail IT estates increasingly span POS, e-commerce, click-and-collect, and IoT devices. However, more devices and more data mean an increased attack surface, particularly when it comes to customers' payment data. As a result, robust security must be embedded in the design of all systems, platform, and processes, not bolted on later. Forward-thinking retailers are already rolling out this 'secure by design' approach, building customer trust through multi-layered, PCI-DSS-ready security ecosystems that allow for continuous monitoring and intelligently automated policy enforcement.

Secure Access Service Edge (SASE) has a key role to play here, converging network and security in the Cloud and offering numerous pathways to establishing identity-centric access, micro-segmentation of IoT devices, and uniform policies across stores and partners. Even with thousands of distributed end points, all this can be accessed through a single pane of glass - a "single source of truth" for all networks, devices, and workloads.

Taking the next step of your AI/IoT journey

AI and IoT in retail aren't separate projects; they must be treated as fundamental parts of a single, software-defined platform that reaches every shelf, sensor, and checkout. Build the network and edge right, wrap it with zero-trust security, and connect it to a governed data and AI backbone, then scale and optimise what works.

If you'd like this distilled into a tailored blueprint for your own estate (i.e. current stores, formats, and use-case priorities), we can map the stack, identify quick wins, and sequence the roadmap to outcomes, with everything overlaid by a single SLA, as a fully integrated service. Get in touch to discuss your own AI and IoT goals and let's make sure you're building on the right digital foundation! 

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'Frictionless' shopping and the rebirth of the high street

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We've been hearing about the impending demise of the high street for years now, ever since online shopping and click-and-collect established themselves as part of our day-to-day lives. And yet, while brick-and-mortar retail has certainly been through a great many challenges and upheavals, it doesn't show any sign of going away quite yet. Rather than simply expecting customers to be content with previous generations' shopping experiences, the sector has demonstrated considerable ingenuity by taking full advantage of emerging technologies to deliver the kind of personalisation that would previously have been the sole preserve of online platforms.

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Balancing safety, security, and unforgettable welcomes in the Pub of the Future

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Like many longstanding institutions, Britain's world-renowned pubs are undergoing their own digital transformation journey, utilising leading-edge technologies to offer truly personalised experiences to patrons of all ages and backgrounds - from longstanding regulars visiting for their usual pint, to families looking for a meal, and young professionals working on the go. It's an exciting time for the sector as a whole, but at the same time, the drive for modernisation must not come at the expense of patrons' safety and enjoyment.

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From routine surveillance to transformational service quality: Why retailers are embracing the next generation of integrated CCTV

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For many years, retailers' CCTV systems and IT infrastructure have operated in relative isolation, competing for space and resources whilst never utilising the full potential of their combined power. The good news is that next-generation IT infrastructure is increasingly bridging this gap, in order to reduce costs, simplify infrastructure, and allow retailers to access a range of actionable data streams through AI and analytics.
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Futureproofing Retail: Why tomorrow’s shopping experiences must all be built on the right digital foundation

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Whether it's in person or online, the way we shop has changed forever. Seamless flows of customer data are powering truly personalised, interconnected shopping experiences, with retailers willing to embrace the change positioning themselves ahead of the competition and developing world-class, instantly recognisable brands.
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Why a stable network should be every bricks-and-mortar retailer’s bread-and-butter

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According to the latest PwC report, about 14 shops are closing every day in the UK as the high street faces one of its toughest seasons in five years. It’s no secret that the convenience of online shopping has been challenging retailers for some time now. With the world of technology ever changing, retailers need to adapt in order to keep up with both their immediate competitors and the wider industry.

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Digitising the high street, part two: How?

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In part one of this two part blog series, we looked at why "bricks-and-mortar" retailers are embracing Digital Transformation in order to compete with the new breed of online retail giants.

In part two, we look at the specific challenges Digital Transformation is throwing up for the high street, and how these challenges can be addressed.

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The Future of CX in Retail - Expert Opinion: An Interview with Manuela Pifani

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Manuela is the founder of the CX consultancy CXellence and has been working with prominent organisations across private and public sectors to help them improve their customer experience focus and capabilities (www.cxellence.com).She is a multi-award winner and CCXP certified executive business leader with a strong track record of over 15 years of experience in leading and transforming the customer experience for the FTSE100 international organisations she has worked for during her corporate career in Financial Services and Retail.

From your perspective as a CX expert, what would you say are the main challenges retailers are facing in 2019?

My personal view is that many retailers have not taken seriously enough what is happening in the sector and the fundamental changes in consumers' expectations, which are defining the way they want to shop. Firstly, customers now expect the ultimate convenience, in terms of ease of access to what they need through online 1-click purchases, real time click & collect or seamless cross-channel interactions. Secondly, they want immediate gratification, where the prompt availability or delivery of products at the best prices is taken for granted - compounded by very low levels of tolerance for bad service or poor quality. Thirdly, they have developed a 'me' mentality, expecting a personalised and relevant service, tailor made to who they are and what they need. Finally, all this is augmented by the fact that the internet has given consumers power by democratising information, providing them with access to product choice, information and ratings, so if you fail to meet those expectations, they will shop elsewhere.

These trends have been either underestimated or misunderstood by many retailers, like the recently collapsed Maplin, Toys'R'Us and House of Fraser, who seem to have made three big strategic errors:

  • Introducing technological solutions as an end in themselves, without starting from customer needs, e.g. creating online purchasing channels as a duplication of the offline ones;
  • Ignoring the fundamental question of why customers should purchase from them rather than from Amazon - and therefore not capitalising on any value-adding differentiators;
  • And linked to the above, failing to rethink the role physical stores should play in an omnichannel shopping experience.


Do you feel that bricks-and-mortar retailers are 'behind the curve' when it comes to the adoption of technology?

Probably yes, as they have been hiding behind the perceived strength of their high street presence. Many have developed online capabilities to replicate what customers can do in store, without truly rethinking how the two channels should be redesigned and seamlessly integrated to deliver a complementarily improved customer experience. Only offering online purchase and click & collect services is not enough to optimise this.

But also, many retailers are very slow in rethinking the role of the store within the omnichannel shopping experience. In a world where they can select and buy everything online, customers often go to stores to complete what they cannot do online (at least yet) to finalise their purchasing decision, like touching and feeling the products, assessing quality or fit, asking technical questions, planning or visualising the end result etc. However, most stores still offer only a crammed display of products lined up on dusty shelves, without enough expert staff or the type of experiential immersion or educational overlay customers expect.

What are some of the limitations you see in how retailers are currently using technology? (For example, adopting technology to reduce costs rather than empowering the customer experience, or only selling their products rather than added value.)

Many still don't even get the basics right, with clunky purchase, delivery or collection processes, which are the result of poor stock, data or service management. Who wants to wait for weeks for an item to be dispatched, then stay at home a whole day for the courier to show up? But also, the lack of clear customer-centric strategic focus means that they are not able to explore the opportunities presented by technology to revolutionise the shopping experience, both online and offline, to meet those expectations of convenience, immediacy and personalisation.

Can you give an example of a retailer who is using technology to its full potential to improve its customer experience and add value?

I do not think anybody is using technology to its full potential yet. However, some organisations have used it well in some areas. For example, Argos, who as an old-fashioned catalogue-based retailer was at risk of ending up in the list of recent casualties, has cleverly evolved its business model to transform the store into an extension of the online experience, to cater for some of the reasons I mentioned above - immediate collection, product inspection, easy returns, while maintaining wide choice at good prices. They also improved accessibility, by creating small collection points within partners' premises in high traffic areas like supermarkets and stations. Simple and functional, but effective.

How do you see the role of the physical store evolving in the future - and do you agree that physical stores will fail without incorporating the Omnichannel experience (AR, AI, ML)?

No, I don't think they will fail because of that, but they will not prosper neither. As I mentioned before, I believe that physical stores need to offer the immersive and relevant experiences customers expect. Whether it's Lush's explosion of the senses or Lego's engaging environment, or it's IKEA's physical or AR home recreations, the store is no longer only about selling products, but it also needs to sell experiences and facilitate the customer journey. Using that type of technology is not essential, but can definitely help with improving the customer experience.

How can retailers introduce AR, AI and Machine Learning in order to leverage data and improve the customer experience?

Using that technology in the right way within physical stores can add an extra level of interactivity, personalisation or audience engagement, e.g. through touchscreen display content, virtual reality experiences, immersive product demonstrations or AR stands. The key is to introduce these as solutions to clearly identified customer needs rather than as stand-alone gimmicks or marketing campaigns. These capabilities are equally important online to deliver rich, relevant and interactive content or transform conventional websites into immersive VR experiences.

Where do you see the industry going forward, both this year and beyond?

Unfortunately, I believe that there will be more casualties in the sector, as too many retailers are not rethinking strategically enough the complementary role of physical stores and technology to meet customers' expectations and improve their experience. They need to understand that stores and websites are no longer only about selling products.

I also believe that technology will be increasingly use­d to create rich, interactive and immersive experiences both online and offline. It will enable retailers to play on the senses and stimulate and engage customers in a much more immediate and personalised way. It will also enable them to teach and educate customers, and to communicate with them in more effective ways, translating complex information into insightful and easy to understand content. The added value and experiential benefits delivered by the right use of technology will enable these retailers to deliver rich and differentiated customer experiences, and therefore drive sustainable value growth.

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Bringing the personal touch to digital transformation – why Exponential-e continues to build our presence in the North

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"When it comes to digital transformation, the personal touch is often what takes projects from 'good' to 'exceptional'. Plenty of companies can deliver technology, but it's the relationships that really drive innovation in long term."

Philip Button, Regional Business Manager – Enterprise

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When it comes to building brand loyalty, customers increasingly expect the retailers they shop from - whether that's online, in person, or via click-and-collect - to demonstrate tangible efforts to operate in an ethical, sustainable, and environmentally friendly manner in everything they do.

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The Retail sector is fundamentally changing, and technology has a critical role to play

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The past decade has been a challenging one for the Retail sector, to say the least. Much has already been written about the impact of online shopping and streaming services on the high street, and the rise of COVID-19 and recent supply chain disruptions have only compounded the challenges facing even the most established brick-and-mortar retailers.
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Cultivating a new breed of cyber security for the new shopping experience

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Retailers - be they small local shops, online sellers, or top global brands - generate, transfer, and store more data than ever before, ranging from customer data (both online and in-store, as we have considered in previous articles), to supply chain and asset tracking data. Whether it's shopping online or utilising in-store apps to access the latest savings and special offers, the way customers shop has fundamentally changed forever, with the data they generate online and in person allowing retailers to build up unique personas that drive truly bespoke experiences.

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The pub of the future: the data-driven transformation of a great British institution

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Like many fixtures of our lives, Britain's pubs were heavily impacted by COVID-19, with their familiar patrons unable to come in for a post-work drink, or meet with friends at the weekend. But while it was undoubtedly a difficult period for the industry as a whole, this great British institution did as it has always done, and adapted to suit its patrons' evolving requirements.

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The case for digital transformation as the foundation of exceptional customer service

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The retail landscape has fundamentally changed in recent years, partly driven by the necessities of COVID lockdowns, and partly by ongoing shifts in customer preferences and behaviour. As we have previously explored on this blog, the familiar high street shopping experience is increasingly converging with online and click-and-collect shopping, offering a new breed of data-driven shopping experience.

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The Retail sector is more diverse, dynamic, and rapidly changing than any other time in its history. This not only encompasses the way customers make their purchases – with online shopping, click-and-collect, and in-person shopping all converging to offer true, end-to-end experiences – but also the way retailers open and operate new sites. Whether this means trendy pop-up shops, kiosks at other brands' locations, or booths at events, retailers from up-and-coming start-ups to global leaders are no longer relying on fixed high-street locations to welcome their customers and put their wares on display, instead making sure they are present wherever their ideal customers are, and fully prepared to offer a world-class experience that builds brand recognition and loyalty.

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For a number of years now, the evolution of the Retail sector has typically been positioned as brick-and-mortar shops - including many longstanding fixtures of UK highstreets - fighting a losing battle against online retailers, such as the seemingly monolithic Amazon. However, the reality of the situation is not quite so clear cut…
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Why SASE is so important in the new, data-driven retail landscape

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With fundamental shifts in consumer behaviour, changing economic conditions, and a rapidly evolving regulatory environment, it's a challenging but exciting time for the UK's retail sector, and technology has a key role to play. In particular, advances in IT and networking solutions are empowering retailers to enhance their operational efficiency, improve the customer experience, and retain their competitive edge in an increasingly online and interconnected world.

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Tomorrow’s shopping experience isn’t just coming… It might already be here

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When you think of a truly world-class shopping experience, what are the key elements that immediately spring to mind? For most of us, it's the personal touches… We're greeted by name by a familiar shopping assistant, who's already familiar with our preferences and purchasing habit. They'll guide us through the entire experience, offering advice and special offers throughout. Regardless of the actual quality of the product or service, it's these touches that will establish it as high-end in the minds of shoppers and encourage them to cultivate relationships with specific brands. It's a model that the world's most renowned retailers have cultivated for years.
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