CSA Exclusive: AT&T exec discusses 5G impact on omnichannel retail
The mainstream emergence of 5G wireless networking is set to transform retail, across channels and throughout the enterprise.
Chain Store Age recently spoke with Michael Colaneri, VP, retail, restaurant & hospitality, AT&T. Coalneri, who leads the retail vertical within AT&T Global Business, specific to Fortune 200 retailers, restaurants, and CPG companies, discusses topics including how 5G networks will affect retail, as well as the impact of COVID-19 on retail digital transformation and how retailers can address labor shortages with mobile technology.
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Getting ready for 5G
“5G wireless networking offers higher speed and lower latency,” explained Colaneri. “It has primarily been adopted by large-format retailers and in large warehouses with big-ticket items. A signal can be sent to a forklift to notify it where items are stored.”
On the back end, Colaneri said 5G networks can also help retailers track the movement of products through the entire supply chain, starting at the raw material stage. This is especially important for maintaining the integrity of temperature-sensitive items. He also discussed how 5G technology can transform how retailers digitally engage customers.
“5G lets retailers increase the complexity of their mobile app experience, especially the customer experience,” said Colaneri. “It greatly increases the richness of media you can deliver to customers.”
Colaneri said 5G can support augmented mobile experiences such as annotations or overlays on a mobile display, on a customer’s own on retailer-supplied mobile device. He also detailed how 5G will be a critical component for the burgeoning area of metaverse retailing.
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“The metaverse won’t work on old technology,” Colaneri said. “Speed of the experience needs to be the same online as offline. A T1 line is not good enough. The remote experience needs to rival the in-person experience. Especially with Generation Alpha coming up as consumers and being so proficient with technology, metaverse will be table stakes.”
Digital transformation in the age of COVID-19
Colaneri also touched on how 5G technology can support retailers trying to keep up with the rapid pace of digital transformation that is being driven by the effects of the COVID-19 pandemic.
“Digital transformation has been expedited,” said Colaneri. “Retailers that had a five-year transformation plan had it pulled to 18 to 24 months. “Consumer digital proficiency was already high, and it only became higher while they were quarantined. This requires retailers to have greater equity between their online and offline experiences.”
For example, Colaneri said that customers who used cashless and contactless shopping and payment methods, such as buy-online-pickup-in-store (BOPIS), same-day delivery and curbside pickup, in response to store closures during the pandemic got used to them and still expect them.
“Retailers who launched these omnichannel services as survival techniques during the pandemic wound up spoiling consumers,” he said. “As consumers are heading back to stores at levels relative to what they were before the pandemic, retailers need to use digital technology to reach them and deliver as convenient and efficient an experience as possible.”
Labor efficiency
With many retailers having difficulty finding and keeping enough employees, Colaneri said 5G technology can ensure maximum output from a smaller pool of workers.
“You can put tools in the hands of associates on the store floor,” he said. “There is a lot of demand for mobile cash wraps. You can automate the store environment so consumers can use their own devices. A lot of fast casual restaurants are using digital menus.”
Colaneri also said that 5G networks can also help retailers navigate the complexities of accepting in-store payments from mobile phones.
“Pay-by-phone involves a lot of different device types and digital tenders,” he said. “You need a secure mobile environment.”