Can IoT Revive the High Street? Focus on the Basics

Like any professional keen to stay abreast of IoT developments, freelance technology writer Nick Booth spends a great deal of time curating the latest ideas.

While most of us have seen the chaos of holiday sales, the true frenzy occurs at the Mobile World Congress in Barcelona, where vendors from around the globe compress an entire year of marketing into four days. Consequently, many industry analysts, including Dean Bubley of Disruptive Analysis, favour more focused gatherings such as Embedded World in Nuremberg or Enterprise Connect in Orlando.

These events can overwhelm the mind in a matter of hours. A practical way to process the flood of information is to visit local shops for a short walk, giving the brain time to consolidate the insights before re‑engaging with the conference.

Watching businesses decline

Yet the local retail landscape is a bleak scene. Department stores across the UK, the US, Spain, and beyond are shuttering: Macy’s has closed locations from Wyoming to Washington, and even California’s malls are in retreat. Silicon Valley’s coders, seeking escape from desk‑bound routines, increasingly shop online, contributing to the decline of brick‑and‑mortar chains like Nordstrom and JC Penney.

Credit Suisse’s 2019 Year Ahead Outlook on commercial mortgage‑backed securities warns that retail bankruptcies and store closures will accelerate. “The trend will likely intensify early this year after the holiday season,” the report states.

Estate agents often tout the high street as the community’s “heart.” However, the technology sector’s disruptive influence has effectively bypassed that heart, redirecting consumer spending into tax havens where it never returns to the local economy.

Can IoT rescue the high street?

It is essential for the IoT community to assist retailers in navigating this challenge. While policy and taxation are significant hurdles, many retailers can leverage smarter use of their existing IoT infrastructure and data.

According to Dave Locke, EMEA CTO at World Wide Technology, retailers waste roughly 20 % of their communications budget on sub‑optimal IoT deployments. The loss stems from fragmented contracts, reliance on legacy fixed‑line and MPLS services, and costly interconnection routes. A thorough audit of comms spend often reveals mis‑billing and inefficient technology use.

Ironically, the funds allocated to cameras, databases, and analytics that aim to drive in‑store sales are eclipsed by the waste in infrastructure. For every £1 gained through timely upselling, retailers can lose £10 due to unmanaged network costs.

The solution lies in prioritisation. “IoT must move beyond a collection of data points; it should provide actionable insights that influence business decisions,” Locke emphasizes.

Meanwhile, Rackspace reports a shift in strategy: many retailers focus on driving online traffic, creating omnichannel experiences, and experimenting with consumer‑facing technologies such as VR and AR. However, these initiatives have yet to reverse the high street’s decline.

The challenge is to determine the right actions at the right time, especially when industry momentum often points in the wrong direction.

The author, Nick Booth, is a freelance technology writer.