Rethinking the telecoms retail experience

After years of economic uncertainty, supply chain strains, and speculation about the “death of retail,” telecom operators are entering 2026 with renewed confidence. The latest industry trends report by iQmetrix, based on input from nearly 120 stakeholders across carriers, retailers, OEMs, and partners, reveals a major shift: retailers are no longer just reacting to external pressures; they’re proactively reinventing the future of the telecom retail experience.

Business challenges & emerging headwinds

Despite this optimism, the industry still faces significant headwinds. The most pressing is declining demand for new devices, with customers holding onto their phones longer and the secondary market booming. Nearly half of respondents identified slowing device upgrades as their top concern, forcing retailers to rethink profitability beyond traditional handset sales.

Disruptive technologies, especially eSIM, are also reshaping the landscape. eSIMs threaten established activation workflows and reduce friction, making the physical store less essential for some transactions. Other challenges include:

• Ongoing struggles to unify digital and physical commerce
• Difficulty attracting in-store traffic
• Persistent economic unpredictability

On the customer experience side, long transaction and activation times, limited product availability, and insufficient associate knowledge remain major pain points. These operational issues directly impact customer perception and loyalty at a time when differentiation is more critical than ever.

Reengineering the in-store experience & inventory strategy

To address these challenges, telecom retailers are modernizing inventory strategies and optimizing store operations.

The report shows widespread adoption of alternative inventory models:

• 81% are using or planning to use consignment inventory.
• 77% are exploring vendor-managed inventory (VMI).

Retailers expect significant growth in drop-ship fulfillment, real-time connected inventory, and store-to-store transfers. These models improve cash flow, reduce overstock, and increase fulfillment flexibility, essential advantages in a market with shrinking hardware demand.

Investment is also happening in solutions that reduce transaction times, improve service flow, and create smoother customer interactions. Operational priorities include improved staff training, better scheduling and workforce management tools, mobile-first store processes, and flexible payment options. These upgrades help eliminate friction, speed up service, and shift associates into higher-value advisory roles.

Empowering sales associates & redefining store roles

While technology plays a massive role in shaping telecom’s future, people remain at the center.

Retailers say they are increasing investment in employee training technologies, AI-assisted scheduling, and performance management tools. With continued challenges around fraud and theft, they’re also strengthening operational safeguards such as blind inventory counts, smarter POS oversight, and the use of demo devices.

Most notable, however, is the industry-wide agreement that the purpose of the store is changing.

• Over half say the physical store is now central to their unified commerce strategy.
• Nearly half expect stores to double as fulfillment centers.
• Many foresee hybrid spaces combining pickup, consultations, hands-on exploration, and service under one roof.

The increasing adoption of wireless retail apps, AR product try-ons, virtual brand ambassadors, and other interactive experiences signals a shift toward "phygital" retail, blending digital engagement with real-world presence.

AI’s expanding influence and its risks

AI is set to become one of the most transformative forces in telecom retail over the next few years. Ninety-six percent of respondents expect AI to drive increasingly personalized experiences online, from better product recommendations to tailored promotions.

Retailers also see AI transforming:

• Demand forecasting and product lifecycle management
• Customer service automation
• Warehousing, logistics, and distribution
• Behavioral analytics and store planning

However, enthusiasm is balanced with caution. Retailers identified data privacy, fraud and misuse, algorithmic bias, and IT integration challenges as meaningful risks. The consensus: AI should enhance, not replace, human support. Customers still crave expertise, trust, and human interaction, especially during complex transactions like activations and upgrades.

Unified commerce is no longer optional

One of the most decisive themes from the report is the industry’s commitment to unified commerce.

Retailers are increasingly focused on delivering a consistent, connected experience across every channel, including online, in-store, mobile, social, and even third-party marketplaces. Over the next three years, many plan to roll out fully unified shopping journeys, deepen personalization through AI, and use data more strategically to shape decisions.

This shift reflects a simple truth: customers expect seamless transitions between browsing, buying, fulfillment, and customer support. The brands that deliver this connected experience will win more often and grow faster.

What telecom retailers should do next

1. Redefine the role of your stores. Prepare for hybrid retail environments that support fulfillment, service, consultation, and digital-driven experiences.
2. Modernize inventory and fulfillment. Adopt more flexible, lower-risk inventory models and upgrade real-time visibility across locations and channels.
3. Use AI strategically and responsibly. Start with high-impact, low-risk use cases such as forecasting, personalization, and workflow optimization.
4. Commit to unified commerce. Ensure your systems, tools, and processes support seamless cross-channel journeys.
5. Continue investing in people. Empower associates with better tools, training, and technology because even in an AI-driven world, people still define the experience.