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  • Smart retail unlocked: Five hurdles SA retailers must overcome in 2025

Smart retail unlocked: Five hurdles SA retailers must overcome in 2025

Quentin Daffarn, Managing Director, UC Wireless.
Quentin Daffarn, Managing Director, UC Wireless.

South Africa’s retail landscape has undergone a profound transformation over the past few years, with the effects of the COVID-19 pandemic accelerating existing pressures and introducing new urgent challenges.

“Fixed-location retailers are asking the same critical question,” says Quentin Daffarn, Managing Director of UC‑Wireless. “How do we stay relevant in the future?”

The need for integrated, scalable and cost-effective solutions has never been greater – and they’re within reach. With the right technologies in place, retailers can address these challenges head-on, driving smarter operations, safer environments and stronger returns from their physical locations.

1. E‑commerce competition: Re‑engineering the in‑store experience

Statista predicts 11.7 million South Africans will buy online this year, rising to 21.5 million by 2029. With more people embracing the digital market, shoppers are just one click away from competitive offers. Standing out in this landscape requires more than good products and friendly service. Today, building loyalty means offering meaningful, personalised experiences. UC‑Wireless recommends an omnichannel experience across in-store and mobile platforms. Free WiFi acts as a powerful touchpoint to engage customers and gather valuable insights: once connected, customers can access loyalty portals with tailored communication and advertising, while presence analytics maps dwell time and foot traffic patterns. “Customers feel seen and heard as individuals, not just data points,” Daffarn explains. Smart parking apps, intuitive way-finding and dynamic restrooms enable retailers to deliver world-class customer experiences.

2. Productivity gaps and labour limitations: Equipping staff for efficiency

The Department of Employment & Labour recorded a fall in labour productivity from 3.1 % in 2021 to 2.1 % in 2022. Untrained employees and skill limitations are impacting productivity and the overall customer experience. The answer lies in tech that closes theses gaps. Rugged DECT/WiFi handsets enable staff communication, while customer service call buttons alert the nearest available employee. Cloud workforce tools streamline shift scheduling, attendance tracking and daily task management – an all-in-one easy-to-use solution. Real-time alerts for checkout congestion automatically trigger additional staff, helping to mitigate customer frustration. “When technology removes friction, staff can focus on serving customers with speed and competence,” he says. The result is a satisfied workforce and a better in-store experience.

3. Health and safety: Protecting staff and customers

The WHO estimates that tainted food makes 600 million people sick annually, while work incidents claim almost three million lives. For retailers, ensuring the health and safety of both employees and customers is a core part of building trust and loyalty. Wearable smart badges with panic buttons and man‑down alerts improve emergency response times. Intelligent stock systems can flag expiry dates and cold‑chain breaches, and air‑quality and pest sensors eliminate the need for constant manual checks. These solutions enable retailers to continuously monitor products, environments and staff. “Visibility in real‑time means risks are managed proactively instead of retrospectively,” notes Daffarn. Proactive compliance also slashes insurance premiums and product recalls.

4. Environmental pressure and operational cost: Aligning sustainability with ROI

With rising utility costs, every lost watt and drop of water counts. At the same time, environmental concerns are driving retailers to operate more sustainably. Nielsen reports 73% of global shoppers are willing to change habits to cut their carbon footprint, and NYU Stern found products with an environmentally friendly label grow 5.6 times faster than conventional products. The challenge lies in finding solutions that reduce environmental impact and deliver measurable business value. Sub-metering is key to track and optimise water and energy usage. IOT sensors detect leaks early, smart parking apps cut vehicle emissions, and trolley‑tracking sensors recover stolen or lost carts, reducing carbon emissions and replacement costs. “Sustainability pays twice – once on the utility bill and again at the till,” Daffarn explains.

5. Theft and loss: Extending visibility across the value chain

Increased security risks, theft, spoilage and inventory mismanagement remain some of the costliest challenges facing the retail industry today. Yaqub states that shrinkage could cost retailers US $115 billion this year, up 33% from 2022. Item‑level RFID tags can trigger alerts when high‑value assets leave safe zones, while smart pallets track location and condition in transit. Energy‑leak sensors, cold-chain alarms and utility monitors curb avoidable losses. Smart monitoring gives loss‑prevention teams time to act, not just data to review, and customers benefit from better stock availability.

From disjointed approaches to an intelligent solution fabric

A congested queue is both a productivity issue and a loyalty risk; a broken freezer is a sustainability, safety and shrinkage problem all at once. UC‑Wireless therefore integrates WiFi, IOT, cloud analytics and mobile collaboration into a single solution fabric. Retailers can start small – like with free WiFi or staff badges – and layer solutions as priorities evolve. Managed service pricing means capital constraints are no longer a barrier to innovation.

“Technology alone never saved a retailer,” Daffarn concludes. “But technology that’s easy to deploy, delivers quick ROI and puts the customer at the centre – that’s the cheat code for staying relevant in 2025 and beyond.”

Smart retail is no longer a buzzword; it is the operating system for growth in the digital decade ahead and UC-Wireless is delivering these solutions today.

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