How retail trends can help drive growth for mobile carriers

Blog
6 minute read
January 16, 2025

Rand Bailin

Principal, Strategy&, Technology, Media and Telecommunications, PwC US

The retail industry is undergoing a profound transformation driven by technological advancements and shifting consumer behaviors. Many retailers are adopting omnichannel strategies, enhancing in-store experiences and using technologies like artificial intelligence (AI) and social commerce to stay competitive. To help meet evolving consumer demands, mobile carriers should rethink their retail strategies with more integrated sales models.

Retail trends affecting the mobile carrier industry

Many consumers are increasingly choosing digital-first experiences that can offer the ease, speed and personalization of online shopping. These preferences are shifting physical store traffic volume. That doesn’t mean brick-and-mortar is dead — but its role is changing, and so is the in-store consumer engagement model.

Major trends helping shape the future of retail include:

Today’s consumers use a combination of digital, physical and hybrid channels to learn about, shop for and buy products. While digital shopping continues to grow, physical stores remain essential for product discovery and purchase. Online and offline work in tandem. In fact, opening a new store can often boost online shopping in the area while closing a store can lead to a drop in online sales. Strategies that can seamlessly integrate online and offline shopping experiences are now considered imperative. Services such as buy online, pick up in-store (BOPIS) and mobile payments have become standard retail practices, reflecting evolved consumer expectations and the importance of omnichannel approaches.

Technologies like AI and social media are playing an important role in modern retail. Social commerce, where social media platforms are used to drive sales, is expected to grow to $2.9 trillion by 2026 from just $992 billion in 2022. Additionally, AI applications can help improve operations, personalize customer interactions and streamline supply chains. Retailers are using AI-powered chatbots and voicebots for customer service via omnichannel approaches. They’re also using AI for personalized recommendations, demand forecasting, pricing and supply chain improvements.

Industry-specific trends that can help shape the future of mobile retail include:

Mobile Virtual Network Operators (MVNOs) and carriers alike are gaining traction with bring your own device (BYOD) options, allowing consumers to switch carriers with unlocked phones. This strategy can help them quickly add subscribers without the high costs of device subsidies or installment plans. BYOD isn't just for low-cost activations — it’s also an effective tool for attracting high-end consumers. Many carriers and broadband providers have seen significant growth from BYOD consumers, lowering their acquisition costs. eSIM technology further can enhance this by virtualizing the experience, preventing the need for physical stores.

FWA is helping drive growth in the US broadband market, outpacing telecoms and cable. Carriers expanding FWA to more homes are finding it a low-cost, viable alternative to cable and fiber. Beyond urban areas, rural markets present a significant growth opportunity, with 8.3 million homes and businesses lacking broadband access, as defined by the Federal Communications Commission.

Many consumers begin their journey online before heading into a retail location to discover, learn and consider their options prior to heading into a retail store. In response, these carriers are adopting the BOPIS trend so they can cater to the digital-first market. To help meet consumers' needs, carriers offer multiple pickup options like lockers, curbside and doorside, reducing retail costs and enhancing consumer experiences. This hybrid model helps provide the flexibility and personalization that many consumers desire.

One of the latest trends in mobile is converged service offerings. Successful early bundling of third-party apps and services has shown that consumers are willing to buy non-carrier products for better deals. Now, fully integrated home and mobile packages are available at discounted rates. Many mobile carriers offer bundled home and mobile services, using fiber broadband to provide diverse plans. Effective retail strategies, whether in-store, online, or hybrid, are essential to manage these complex sales and lower acquisition costs.

Reimagining growth strategies despite challenges

Across industries, labor costs have surged due to low unemployment rates, higher hourly wages, required training and high employee turnover, driving retail costs even higher. Delivering consistent customer experiences in-store can be increasingly difficult, affecting the level of personalization customers expect. Moreover, global supply chains are under pressure from political policies, high inventory management costs, growing warehousing and logistics expenses, and raw material volatility. As consumer preferences shift and supply chain volatility persists, generating effective demand forecasts has become more challenging.

This moment demands that carriers strike the right balance of online services to help deliver top-quality customer experiences at the lowest cost. Hybrid models that combine digital self-service in stores can lower costs and create iconic user experiences. With many consumers already embracing online transactions, now is the time for the carriers to lead them forward. Many consumers often demand high-quality customer experiences across brand channels. According to PwC research, one in three consumers would stop doing business with a brand they love after just one bad experience, and more than half — 55% — would stop buying from a company after multiple bad experiences. Carriers should equip their stores, their online customer service and their self-service options with the latest tech tools so they can meet consumers where they are with industry leading, consistent service. Focus on transformative changes, reimagining stores as experiential spaces, and prioritizing the right products and services.

As you consider these changes and reimagine growth strategies, several key questions can help guide your approach:

What role should retail play in acquisition, retention and support strategies as part of the overall customer experience?
What products and services should be sold in retail and how?
How can retail transform and help integrate with trending digital-first transaction environments?
Are we using the kind of customer preference data that can help shape in-store experiences to complement our online approach?
How can retail take out costs while delivering high-quality omnichannel customer experiences?
How can supply chains become strategic assets in a carrier’s approach to retailing?

Retail transformation: an opportunity for growth

By adopting a unified commerce approach, your mobile organization can offer experiential and personalized shopping experiences.

Consider the following steps to help you seize the opportunities presented by retail transformation:

Define the strategic importance of physical stores versus online channels in the overall business model. Determine the specific value propositions each channel can offer and how they complement each other. Identify the products and services that should be prioritized in physical stores versus online platforms.
Transition physical stores from transactional hubs to support quick service digital experiences for simple transactions and integrated online to physical service experiences in store that can drive with products and services in meaningful ways. Invest in technologies that helps create immersive and interactive in-store experiences.

Explore ways to integrate digital innovations into physical retail spaces. Implement technologies that can enhance the in-store experience while helping facilitate seamless transitions between online and offline interactions. In a market dominated by device swaps and the introduction of eSIM, consider evolving and personalizing customer journeys.
Embrace digital-first strategies, such as AI-enabled personalization, social commerce and seamless omnichannel integrations. Check that online and offline channels work together so you can provide a cohesive and convenient customer journey.

Focus on cost-saving initiatives that don’t compromise the quality of customer experiences.
Consider automation and outsourcing non-core functions, adopting flexible staffing models and using data analytics to help streamline operations.
Consider using technologies such as radio frequency identification and computer vision AI to help improve inventory management.

Build a stronger and flexible supply chain that can quickly respond to disruptions and changing consumer demands.
Utilize advanced technologies to help improve demand forecasting, inventory management and logistics efficiency so you can offer timely product availability while also helping reducing costs.

Develop hybrid sales experience models that combine the strengths of both online and offline channels. Offer self-service options in-store that can provide opportunities to offer services and products that enhance customer experiences and reduce transaction friction. This self-service option should also enable customers to perform transactions independently while providing support when needed.

The path to sustainable growth

The retail transformation journey can offer mobile carriers a unique opportunity to help drive growth and enhance customer loyalty. By asking the necessary questions and implementing innovative strategies, carriers can navigate the evolving retail landscape and position themselves for success.

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