In an age where constant connectivity is the norm, free wifi has become a common perk that customers expect from retailers. The ability to access the internet while shopping provides both convenience and added value, whether it‘s comparing prices, downloading coupons, passing time in the checkout line, or keeping kids occupied. As a result, complimentary wifi is now available in a majority of retail establishments, from coffee shops and restaurants to clothing boutiques and big box stores.
However, not all major retailers have embraced this trend. CVS, the largest pharmacy chain in the United States, stands out for not offering free wifi in any of its nearly 10,000 standalone locations or pharmacies inside Target stores. This puts CVS in the minority among its peers – key competitors like Walgreens, Rite Aid, Walmart, Kroger, and Costco all provide complimentary wifi access to customers as a standard amenity.
So what‘s behind CVS‘s contrarian stance on this issue? Is the lack of free wifi a pain point for CVS shoppers, or a nonissue? What would it take for CVS to change its policy and get on board with this industrywide best practice? As retail and consumer experts, let‘s dive into the details of CVS‘s wifi situation and what it means for the average customer.
The State of Wifi in Retail: Everybody‘s Doing It
To put CVS‘s position in context, let‘s look at some key data points on the prevalence of free wifi in the retail sector:
- 64% of retailers worldwide offer complimentary wifi access in their stores. (Statista)
- 61% of U.S. consumers say free wifi plays a role in deciding which stores they visit. (iGR)
- 50% of shoppers actively use their smartphones to look up product information and compare prices while in physical stores. (Deloitte)
- 40% of retailers saw an increase in customer dwell time after introducing in-store wifi. (EarthLink)
These statistics paint a clear picture: free wifi is quickly becoming table stakes in the world of brick-and-mortar retail. What was once an extra perk is now an expectation for many digitally-enabled consumers, particularly younger shoppers. Stores that don‘t offer this capability risk being seen as behind the times or not customer-friendly.
The growth of in-store wifi is part of a larger trend of retailers leveraging technology to create a more seamless, personalized, and engaging shopping experience. Many stores now use wifi not just as a simple customer convenience, but as a platform for a wide range of innovative applications and services, such as:
- Personalized marketing: Sending targeted offers, coupons and recommendations to shoppers‘ devices based on their in-store location and behavior
- Wayfinding: Providing interactive store maps and guided product search via mobile app
- Mobile checkout: Allowing customers to scan and pay for items directly from their smartphone, skipping the checkout line
- Endless aisle: Giving shoppers access to a retailer‘s full online inventory and the ability to place orders for out-of-stock items
- Experiential content: Offering exclusive multimedia content like product demos, styling tips, and behind-the-scenes videos to in-store browsers
Retailers on the cutting edge are thinking of their stores not just as transactional spaces, but as immersive, tech-enabled brand showcases. In-store wifi is the connective tissue that makes many of these next-generation shopping experiences possible. From this perspective, CVS‘s wifi holdout seems even more glaring – the company isn‘t just declining to provide a baseline convenience, but potentially missing out on major opportunities to innovate the customer experience.
Why Doesn‘t CVS Have Wifi?
So what‘s stopping CVS from joining the in-store wifi party? While the company hasn‘t publicly commented on its rationale, retail insiders and CVS employees have offered several potential explanations:
Security & Liability Concerns
Opening up a wifi network to public use comes with certain risks, including the potential for hacking, data breaches, illegal activity, and inappropriate content access. As a healthcare provider entrusted with sensitive patient information, CVS may be extra cautious about network vulnerabilities. Offering wifi at scale across thousands of locations could create massive exposure and liability issues if not implemented with airtight security measures.
Productivity Worries
CVS is known for a high-volume, low-margin business model that depends on processing customers quickly and efficiently. Many locations are understaffed and deal with long checkout lines, especially during peak hours. Unlike retailers that encourage leisurely browsing, CVS‘s goal is to get shoppers in and out as fast as possible. Free wifi could invite loitering and distract customers from making their intended purchases, reducing store productivity.
Brand Identity
CVS may not see wifi as a essential part of its core value proposition or brand experience. As opposed to retailers that cultivate a more aspirational, lifestyle-oriented image, CVS is primarily focused on convenience and low prices. In-store wifi, with its associations of lingering and leisure, could run counter to CVS‘s desired "quick trip" identity. The company may prefer to invest its resources in other priorities, like expanding health services and drive-thru pharmacies, that are more aligned with customer needs.
Cost vs. Benefit
Providing free public wifi is not without costs, including expenses for equipment, installation, maintenance, bandwidth, security software, and customer support. For a retailer of CVS‘s size and geographical footprint, these expenditures could quickly add up. If CVS believes the competitive and experiential advantages are minimal, it may not consider wifi a worthwhile investment compared to other ways of improving the customer experience.
The Customer Perspective: Frustration and Resignation
While these reasons give insight into CVS‘s calculus, they may come as cold comfort to customers who increasingly see wifi as a baseline service, not a special amenity. On social media and online forums, some shoppers have vented their frustration with CVS‘s lack of connectivity, which can be especially inconvenient for those waiting on prescriptions or in long checkout lines.
"I spend more time at CVS every week than I‘d like to admit, between errands and picking up meds for my family," says Lisa R., a mom and frequent CVS customer. "A little wifi would go a long way in keeping me sane and preventing my data overages. I just don‘t understand why they can‘t provide it when everyone else does – it comes off as very old-school and not customer-centric."
Other CVS shoppers are more resigned than angry about the missing wifi, chalking it up to the retailer‘s no-frills business model. "It would be nice if they had it, but I know not to expect that level of service from CVS," says Mike T., another regular customer. "For me, their rock-bottom prices make up for the lack of in-store amenities. I can live without surfing the web if it keeps my bill low."
Despite these grumblings, there‘s little evidence that CVS‘s wifi policy alone is driving customers away en masse. In a 2021 survey by retail analytics firm iGR, wifi access ranked relatively low on shoppers‘ list of priorities, with 83% of respondents considering it "not at all important" or only "somewhat important" to their choice of retailer. Factors like price, selection, convenience, and customer service were more top of mind.
This suggests that while free wifi is certainly a desirable perk, it may not be an outright expectation or deciding factor for the average CVS customer – at least not yet. As long as CVS continues to deliver on the core elements of its value proposition, most shoppers seem willing to overlook or work around the connectivity gap.
Looking Ahead: Will CVS Change Its Tune?
As free wifi becomes increasingly ubiquitous in the retail landscape, the question is not if but when CVS will face a tipping point of competitive pressure and customer demand to change its policy. Younger, digitally-native generations like Millennials and Gen Z now wield massive purchasing power, and they bring with them much higher expectations for constant connectivity and tech-enabled shopping experiences.
Whereas older shoppers may see wifi as an extra convenience, these next-gen consumers view it as a must-have, and they‘re likely to gravitate towards retailers that allow them to stay connected while shopping. A recent survey by mobile carrier iPass found that 66% of Millennials consider complimentary wifi "very important" when choosing which stores and restaurants to visit. Meeting the needs of these highly-coveted customers will only become more imperative for CVS in the years ahead.
Retail futurists believe that wifi‘s importance will only grow as a foundation for even more immersive and high-tech in-store experiences. Forward-looking retailers are already experimenting with applications like augmented and virtual reality, digital product customization, smart shelf tags, and drone delivery – all of which could hypothetically leverage in-store wifi networks. As these bleeding-edge use cases become more mainstream, retailers like CVS may need robust wifi infrastructure just to keep up with rapidly evolving customer expectations and competitive pressures.
Of course, simply flipping the switch on free wifi access will not be a quick or easy undertaking for CVS. The company would need to make significant investments to roll out wifi at scale while ensuring a smooth, secure, and stable experience across all of its locations. Potential approaches could include:
- Conducting extensive network testing and security audits to identify and mitigate vulnerabilities
- Partitioning public wifi from sensitive internal systems and patient data
- Implementing content filters, access controls, and bandwidth caps to prevent network abuse
- Prominently displaying terms of service and acceptable use policies for wifi users
- Staffing up IT and customer support teams to manage wifi-related issues and inquiries
- Exploring opportunities to monetize wifi with ads, sponsorships, or add-on services
Most importantly, CVS would need to think strategically about how to harness wifi not just as a simple perk, but as an enabler of richer, more personalized customer experiences that drive sales, loyalty, and competitive differentiation. In a crowded and commoditized retail pharmacy market, creating a superior in-store experience could be key to standing out and preserving market share.
Conclusion
In the age of the connected consumer, CVS‘s lack of free wifi is more than just a missed freebie – it‘s a conspicuous absence of a service that shoppers increasingly expect as standard. While CVS leadership seems to have calculated that the costs and risks of wifi outweigh the potential benefits, this equation is likely to change as more and more retailers embrace the technology and shoppers come to demand constant connectivity.
To stay relevant to digital-first generations, CVS may need to bite the bullet and join the wifi wave sooner rather than later. But simply checking the wifi box won‘t be enough – CVS will need to take a thoughtful approach to maximize the competitive advantages and experiential possibilities of this powerful platform.
For shoppers, CVS‘s wifi holdout is an inconvenience and annoyance, but likely not a dealbreaker for now. Those who absolutely need internet access will have to rely on their mobile data plans or plan ahead by downloading necessary resources before visiting the store. As in-store wifi becomes more of an expectation than an extra, CVS may face greater backlash for not providing this basic amenity.
At the end of the day, CVS‘s wifi policy is just one facet of the larger push and pull between retailers and consumers over the role of technology in the brick-and-mortar shopping experience. As the line between physical and digital commerce continues to blur, retailers of all stripes will need to balance the benefits of tech-driven innovation with the challenges of implementation and the importance of nailing the fundamentals. While free wifi alone won‘t make or break the customer experience, it‘s a bellwether of how nimble and responsive a 20th century retailer can be in an increasingly 21st century marketplace.
