IOT IN

RETAIL
By- APO-2
Shaunak Das 230101187
Shivangi Parmar 230101192
Hemant Kumar 230101083
Manan Harjai 230101114
Mayank Khowal 230101120
Manish 230101115
Shashwat Agrawal 230101186
RETAIL SECTOR
The retail sector involves businesses selling goods
and services directly to consumers, ranging from
small stores to large chains and e-commerce
platforms. Over time, it has evolved from traditional
brick-and-mortar stores to digital and omnichannel
experiences, driven by technological advancements.
Innovations like POS systems, e-commerce, and AI
have enhanced efficiency, customer engagement, and
operational processes, shaping the modern retail
landscape.
Traditional markets and small retail
stores relied on manual transactions
and direct customer interactions.

TECHNOLOGICAL 6

EVOLUTION IN RETAIL 5

4 Adoption of IoT,
automation, and smart
3 Growth of AI, big data, retail technologies for
and omnichannel real-time inventory
2 retailing, enabling management,
Expansion of mobile
personalized shopping automated checkout
commerce (m-
experiences and systems, and enhanced
1 Rise of e-commerce commerce) and the
engagement through
seamless integration
with platforms like introduction of RFID for
between online and AI-driven insights.Ex
Amazon and eBay, better inventory
Introduction of offline stores. smart shelf,Automated
transforming shopping tracking.
barcode scanning and checkout
Traditional markets point-of-sale (POS) habits.
and small retail systems, improving
stores relied on checkout efficiency.
manual transactions
and direct customer
interactions.

st ores.
d offline
nli ne an
CONVENTIONAL
Retailers using standalone cash registers often experience

SOLUTIONS higher stockout rates due to lack of real-time inventory tracking.

Similarly, long checkout lines, a consequence of basic POS
systems, lead to cart abandonment.

CUSTOMER FEEDBACK FORMS

01 Collecting customer feedback through paper-based surveys

or comment cards. Manual data entry can have error rates of $1 USD TRILLION
1-5%
LOSSES SUFFERED IN 2023
PHYSICAL SECURITY GUARD
RELYING ON MANUAL
INVENTORY COUNTS
Employing security personnel to monitor stores for theft and
02 suspicious activity. A study by the Loss Prevention Research
Council (LPRC) found that the presence of uniformed security
guards can reduce shoplifting incidents by 20-30%. 10-15%
PERCENTAGE OF REVENUE USED
CASH REGISTERS IN LABOUR-INTENSIVE TASKS
03 Simple cash registers that only record the transaction amount SUCH AS RECONCILING CASH
and do not integrate with inventory systems. Retailers using
DRAWERS
standalone cash registers often experience higher stockout
rates due to lack of real-time inventory tracking.
 CHALLENGES FACED
Common Problems in Retail

Inventory Mismanagement: Manual stock

checks lead to overstocking or stockouts,
causing lost sales and high holding costs.

Supply Chain Inefficiencies: Lack of real-time

tracking results in delays, theft, and wastage.

Slow Checkouts: Long queues and inefficient

billing lead to customer frustration and cart
abandonment.

High Operational Costs: Inefficient energy

usage and manual labor increase expenses.

Automated
Theft & Shrinkage: WeakCheckout
security systems
lead to inventory losses and profit reduction.
 ROLE OF IOT IN RETAIL
In the retail sector, IoT transforms traditional operations by integrating advanced technologies
to streamline processes, enhance customer experiences, and boost efficiency.

Real-time Data Automation Personalization Operational Efficiency

Collection
IoT devices like sensors and Automating processes such IoT enables tailored customer Smart systems optimize
RFID tags track inventory, as inventory management experiences through data- energy usage, supply chain
customer behavior, and and checkout reduces driven insights, such as logistics, and in-store
equipment performance. manual intervention. personalized offers and operations
recommendations.
EXAMPLES
01 02 03 04
SMART SHELVES AUTOMATED CHECKOUT SMART SHOPPING CARTS ENERGY MANAGEMENT

IoT-powered cashier-less IoT-enabled carts, such as Smart IoT devices control

Equipped with RFID and
stores like Amazon Go use those by Caper, have built-in lighting, HVAC systems, and
weight sensors, smart
shelves detect low stock cameras, sensors, and AI to barcode scanners and refrigeration in retail stores
levels and misplaced items. track items picked by screens that assist to optimize energy usage,
Walmart and Kroger use customers and automatically customers with navigation, reduce costs, and promote
this technology for real- charge them upon exit, product recommendations, sustainability. Retailers like
time inventory tracking and eliminating traditional and automatic checkout. Tesco and Target leverage
efficient restocking. checkouts. IoT for energy efficiency.
SMART SHELF
SMART SHOPPING CART
 KEY IOT PLAYERS

AWS IoT (Amazon Web Cisco IoT

Services) Provides real-time asset tracking,
Cloud-based IoT platform enabling smart surveillance, and network
smart inventory tracking, security solutions.
automated checkouts, and Deployed in Walmart & Tesco for
predictive analytics. automated monitoring & store
Used by retailers like Amazon Go efficiency.
(Just Walk Out technology).
 Subscription & Pay-as-You-Go Model
Charges retailers based on data
processed, devices connected & cloud
usage.
Example: Amazon Go leverages AWS for
smart checkouts & analytics.

Hardware + SaaS Model

Sells smart sensors, networking devices, & security
systems.
Subscription-based analytics & security services for
retailers like Tesco & Walmart.

Why These Models Work?

Scalable: Retailers pay based on usage.
Cost-Effective: Reduces manual labor & improves efficiency.
Secure & Reliable: Ensures real-time tracking & fraud
prevention.
 IOT CUSTOMER USE CASES

01 02 03
AMAZON GO WALMART SEPHORA
Cashier-less Shopping Implements smart shelves Uses IoT-enabled smart
IoT sensors and cameras with RFID and IoT sensors mirrors and AR
track products picked up for real-time inventory technology for virtual try-
by customers, allowing tracking and automated ons of makeup and
automatic checkout restocking. beauty products.
without waiting in line.
 CHALLENGES & RISKS IN IOT
ADOPTION
Key Risks in IoT Implementation

🔹 Data Security & Privacy

IoT devices collect sensitive customer data → risk of cyberattacks & breaches.
Example: Target’s 2013 Data Breach (hacked IoT-connected payment
systems).
🔹 High Initial Investment
Cost of IoT sensors, cloud infrastructure & integration is significant.
Small retailers struggle with affordability & ROI concerns.

🔹 Network & System Integration Issues

Legacy retail systems may not be compatible with IoT.
Requires high-speed connectivity & seamless software integration.

How Companies Mitigate These Risks?

Cisco IoT Security: End-to-end encryption & threat detection.
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AWS IoT Device Defender: Monitors security compliance for retailers.
 FUTURE TRENDS & CONCLUSION
Upcoming IoT Trends in Retail

🔹 AI-Powered Smart Stores

Predictive analytics & automated restocking → used by Walmart & Amazon Go.

🔹 5G-Enabled IoT
Faster, real-time data processing → improving checkout speeds & logistics.

🔹 Sustainable IoT Solutions

Smart energy management & waste reduction using IoT sensors.
Example: Tesco’s energy-efficient stores using IoT-based climate control.

FINAL TAKEAWAYS
IoT is transforming retail with automation, real-time insights & efficiency.
Adoption challenges exist but security & cost innovations are making it viable.
Retailers investing in IoT will gain a competitive edge in the future

IOT IN RETAIL ISN’T THE FUTURE—IT’S THE

@reallygreatsite
PRESENT. ARE YOU READY?
Thank
you