IoT, or the “internet of things,” allows physical devices to collect and exchange data via the internet. According to the IMARC Group, IoT in retail will reach US$ 147 billion by 2028, an 18.2% growth from 2023 to 2028.
IoT is not new to the world; it has been here for decades. But the IoT in retail has seen an explosive expansion in recent years due to certain trends and customer behaviours like phygitalisation and rising automation.
Retailers can digitally transform their physical stores by adopting IoT technologies like digital signage, payment systems, smart lighting, and vending machines. Weight-sensing smart shelves can collect RFID-based data, send it to an IoT platform, and automatically check stock on shelves, in warehouses or even in transit and notify retailers when items are running low.
Beacons are another technology that enables personalised customer experiences. The global beacon technology market is predicted to reach $10.2 billion in 2024. Beacons can push notifications on offers, promotions, or in-store events to customers when they pass by your store or a particular product section to drive footfall.
IoT helps retailers bridge the physical and digital worlds, manage inventory, optimise order fulfilment, improve the omnichannel customer experience, and reduce operational costs.