IoT has been a game-changing technology across all industries. As per Statista data, the total number of internet of things devices in the world will reach just above 30 billion by next year. Most adopters consider IoT vital to their company’s success, so these devices are likely to exceed 75 billion in six years.
Whether connecting existing or new devices, retail businesses are finding many reasons to adopt IoT. So in what way are they using it to drive retail business results? Here, we will list the best IoT usage scenarios for retail businesses.
Making Retail Supply Chain As Good As Possible
The capability to track goods in all parts of the retail supply chain is a big differentiator in all segments. This accounts for most use cases of IoT in retail in this list. Real-time and transparent data concerning shipping status, shipping location, conditions, delays etc., helps businesses keep goods on the shelf and keep their customers satisfied.
Some of the advantages of IoT solutions are shipping traceability and transparency, immediate insights, plus automated warehouse processes.
It can be tricky, time-consuming and costly to track levels of inventory and keep goods in stock. So retail businesses turn to this technology to optimize their inventory. This accounts for the second-most use cases here.
IoT can identify the location of goods immediately as well as track and send notifications on inventory that accumulate in fitting rooms. It can scan for gaps in display shelves and for product locations, and send notifications on mislabeled or misplaced goods.
Keep Staff and Shoppers Safe
Keeping employees and customers safe is an additional priority for retail businesses. Security and surveillance account for third-most used cases of IoT in this segment. IoT security and surveillance solutions monitor for any suspicious behavior, potential safety hazard and person of interest, sending notifications when any issue is detected.
Preventing Loss of Products
Retail businesses reportedly have an average stock reduction of 1.38% this year. Unsurprisingly, loss prevention makes up the fourth-most uses cases. It is possible for IoT to prevent loss of goods by keeping un-purchased items from going out and detecting missed products at checkout.
Reducing Energy Consumption
As retailers look to cut down energy usage expenses and reduce their total emissions, they are turning to this technology. For 40% of retail businesses, a top cause for embracing IoT is energy optimization.