5 Use Cases for the Internet of Things in the Retail Industry


The tech revolution has influenced virtually every aspect of our lives. One such impact that we observe in using modern technology in the Retail Industry

Entrepreneurs are investing in the latest tech to make the shopping experience of their customers truly amazing.

One such technology that is taking the retail sector by storm is IoT or the Internet of Things.

This technology helps in establishing an interactive network between different physical devices that are connected to the Internet.

It is estimated that by 2025 this technology will deeply influence consumer behavior as well as improving the competitiveness of a business.

Five amazing examples of IoT in the retail industry

IoT is going to be huge in the coming years. According to McKinsey, the IoT in the retail business will cross $ 1 trillion by 2025.

This technology will help the retail industry to offer an incredible shopping experience to their patrons.

To give you specific examples, we have shared with you five amazing use cases of IoT in the retail industry.

Supply chain management optimization in Retail Industry 

Keeping track of the entire inventory in the retail business is a big challenge.

The IoT can help you in this matter in a big way.

Installing GPS sensors can give you real-time data about different products, where they are stored, at what temperature they are stored, and how long it took for a product in transit.

This data is a goldmine for company planners to figure out the optimum way to improve the quality of transportation.

Furthermore, the real-time data regarding the temperature at which the products are stored give you enough time to intervene in case the temperatures are too high or low to avoid any loss.

IoT can be a big help in optimizing your logistics to ensure the products reach the shelves with minimal or no loss.

In-store retail store layout optimization

To give your customers a great shopping experience, your retail space must be optimized in a way so that the customer can find what he/she is looking for without much trouble.

In many retail stores, it has been seen that some of the less popular products are placed in the front rows, and the ones that sell like hot cakes in the back rows.

You can use infrared sensors integrated with aisle analytics software to figure out how to improve your retail layout using IoT technology.

For example, you may find that your customers are spending more time looking at mirrorless cameras which are placed on the back shelves, and the mirror-based DSLR, which are the least popular, are placed on the front shelves.

This knowledge will help you to keep the more popular items at the front of your store.

Smart shelves in Retail Industry

Two of the big challenges the employees of any retail store face is keeping track of different items and find out which ones are running short and misplaced items.

The smart shelves are a great solution for both these problems.

The smart shelves are embedded with weight sensors and the products can be given RFID tags.

This helps you in finding out which items are low in stock and which items are placed on the wrong shelves.

This makes inventory management accurate and easy.

Furthermore, the RFID tags help you find any theft in your store.

Therefore, this one-time investment would help you save money in the long-term by employing lesser security personnel at your store.

Beacons in Retail Industry

These small Bluetooth devices send alert messages to the customers if they are near your retail store.

In this way, you can attract the customers by sending them discount coupons for some special day.

These beacons can also send them reminders regarding any items they have downloaded in the store’s app when the user is near the store.

You can also use IoT to reward your loyal customers by sending them discount coupons.

The IoT can go through the browsing history of your customers to see what they are looking for online and if these items are in your store then send them special discounts on those products to entice them.

Retail Industry Automatic checkout

Your customers are hard-pressed for their time and they want to spend the minimal amount of their precious time on the checkout queue.

To give them a great shopping experience, you should implement an automatic checkout feature in your retail store.

This technology will use sensors to scan the RFID tags of the products to find out the total value of the goods the customers have purchased and deduct it from their mobile wallet automatically.

Such an app would not only improve the shopping experience of your customers but will also help you save costs as you have to employ the least number of people in your retail store.


From the above use-cases, we conclude that IoT is changing retail businesses for good, and in the next decade, it will reach different corners of the globe.

Besides these use-cases, there are various other well-known use-cases through which you can take your retail business to new heights. To know more, refer to this blog on IoT in retail

Lastly, as an entrepreneur, you should stay ahead of the technology curve to make your operations efficient, effective, productive, and cost-competitive. For this, you should invest in IoT applications to enhance your internal operations, and offer more value to your customers.

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