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From AI-powered personalisation to hybrid store models, telecom retail is reinventing itself for a connected, customer-first future
Jason Raymer, iQmetrix
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.
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:
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.
To address these challenges, telecom retailers are modernizing inventory strategies and optimizing store operations.
The report shows widespread adoption of alternative inventory models:
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.
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.
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 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:
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.
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.
