Wireless retail is evolving. The evolution is complex and is not a one-way street. Most carriers understand that there is a continued need for the human element and that a one-size-fits-all approach is unwise. This is not true of all carriers.
When the pandemic hit in 2020, some assumed that between the pandemic and digital transformation, store counts would tumble. Certainly, stores closed temporarily amid the pandemic. In fact, a study by Wave7 Research indicated that as of late March 2020, only 45% of postpaid carrier stores were operating amid the pandemic.
Verizon CEO Hans Vestberg famously said at CES 2021 that the pandemic moved the digital revolution forward by five to seven years. This seems true, as there is a great deal of digital transformation in the wireless marketplace. However, this does not entail a mass closure of stores.
Verizon aside, store counts are rising
My firm, Wave7 Research, does two reports per year on wireless retail, including carrier store counts. One finding is that in the back half of 2022, AT&T, T-Mobile, Comcast and Charter all increased their store counts. Verizon was the only outlier with a modest number of dealer stores closing in late 2022. Cox Communications has 121 stores, and as of December, these stores are selling wireless services. Altice USA has opened 16 stores already in 2023.
T-Mobile announces retail strategy
T-Mobile has a history of optimism about wireless retail. In 2017, then-COO Mike Sievert penned an articulate and spirited defense of carrier retail: “Long Live the Store!” He wrote, “T-Mobile's customers have made it very clear, by voting with their feet, that they prefer to shop at our stores."
“Our new Express format – branded as Metro by T-Mobile and operated by Authorized Retailers – will offer fast ways to purchase prepaid and select postpaid products,” wrote Jon Freier, president of the Consumer Group for T-Mobile, in January. Freier outlined the four store formats that T-Mobile will have going forward. Another format is T-Mobile Signature Stores. There are only five such stores, but they are in high-visibility locations such as Times Square in New York, the Vegas Strip and Chicago’s Magnificent Mile.
T-Mobile is also investing in its Experience store format, as some stores have recently been upgraded to this format. “Much like Signature, these stores will be staffed by our customer-obsessed Mobile Experts with expertise to handle every issue … from A to Z,” Freier wrote, adding that customers “have access to complete service capabilities.” There is also a Neighborhood store format, which provides “a blend of convenience and service for…everyday needs,” providing “most popular products and services.”
Opening stores in rural areas has also been a major initiative for T-Mobile. In April 2021 Freier said that T-Mobile was planning “hundreds of new stores” for “small towns.” Freier regularly tweets out pictures of new T-Mobile stores opening in small towns, as seen in this February 23 tweet.
Verizon ends Verizon Express experiment
For its part, Verizon has been slowly, but steadily losing stores in recent years. During late 2022, an average of nine dealer stores closed per month, while the number of corporate stores did not change. More than three-fourths of Verizon stores are dealer stores. Sources are saying that Verizon is likely to let dealers operate some of its corporate stores.
Verizon recently experimented with a Verizon Express store format. The stores promised “touchless transactions in four minutes or less,” and the stores were smaller, with fewer employees. Customers select a phone online and pick it up at the store, so this was a hybrid online/retail format. There were seven such stores. However, Wave7 Research recently reported that the format had met its end. “Following the recent pilot of our Express Stores we’ve decided to focus on our traditional retail store model to meet the needs of customers in the community moving forward,” a Verizon spokesman recently told Wave7 Research.
Many Verizon stores have been converted to Next Gen stores, which were announced by Verizon in August 2017. “The Next Gen store is an evolution of Verizon’s retail vision and an investment in our customers, based on the recognition that customers are learning to shop differently in the 21st century: frictionless, collaborative and convenient,” the carrier said, adding that Next Gen stores are “able to carry 25% more inventory using 50% less floor space thanks to the Next Gen store’s efficient use of space.” Stores continue to be remodeled to the Next Gen format.
AT&T is adding stores
AT&T in late 2022 was adding an average of 11 stores per month. The carrier is also the incumbent phone company in many markets, and selling AT&T Fiber is a secondary priority at many AT&T stores. One trend for AT&T has been that increasingly, the stores are operated by dealers. More than 70% of AT&T stores are now run by dealers, versus fewer than 60% not long ago.
Need for balance between technology and the human element
T-Mobile and AT&T seem to understand that there is a need for balance between technology and human contact. You can call a store from either anytime you’d like and have your questions answered. True, AT&T is leaning into QR codes heavily these days, but the carrier gives many options for interaction, including a 1-800 number, online video chat, Right to You phone delivery, and dealer reps at national retailers. Third-party reps pitching AT&T are regularly seen at Target and Sam’s Club, among other retailers.
“A one-size-fits-all-approach to retail is long gone, and if we can’t offer a multi-channel, customized retail shopping experience, then we have missed the mark,” T-Mobile's Jon Freier recently wrote. I agree. In addition to stores, T-Mobile truck teams make appearances at well-attended events such as pro baseball games, and T-Mobile is increasingly embracing national retail.
Verizon lacks human element
In addition to a shrinking store count, Verizon not long ago pulled out of Target and Sam’s Club. As I tweeted recently, Verizon’s store locator now presents the same 1-800 number for all corporate stores. Analysts from Wave7 Research have not completed a call to a Verizon corporate store since spring 2020. Now, calls to some dealer stores automatically roll over to the dealer’s care center.
Verizon corporate stores no longer post their store hours, posting QR codes instead. I wonder how adept elderly customers are at scanning QR codes. If it is raining, you might have to get wet to solve the mystery of store hours. In one recent instance, I could not get to the QR code because I needed both hands to hold the burger that I was eating. Quite a few Verizon stores are now closing at 6:00 p.m.
Dealer consolidation – all three carriers agree on this
A major trend of recent years is that all three carriers are pushing dealer consolidation. Having fewer dealer partners allows for a leaner organization and better control of costs. There are many examples of this, but a year ago, Verizon dealer Victra bought Go Wireless and now operates more than 1,500 stores.
I’m not knocking technology. When customers do their own care and online shopping, carriers can save money and improve their flow of information. Reps at carrier stores can build relationships with customers, which can build loyalty. This is especially true with older customers. “One-size-fits-all” is not the way to go. And note to Verizon, please don’t make me put my burger down to figure out when your store is closing.
Jeff Moore is Principal of Wave7 Research, a wireless research firm that covers U.S. postpaid, prepaid, and smartphone competition. Jeff has 25 years of telecom industry experience, including 13 years of competitive intelligence work for Sprint. Follow him on Twitter @wave7jeff.
Industry Voices are opinion columns written by outside contributors—often industry experts or analysts—who are invited to the conversation by FierceWireless staff. They do not represent the opinions of FierceWireless.