T-Mobile are one of the largest Telcos in the USA. For decades now, Americans have used their services to make calls, and connect to the internet. However, throughout that time, there have always been T-Mobile stores that people could walk into.
In the near-future however, that may change.
This article will look at why T-Mobile are shutting down their stores, and whether the same might happen over here.
Why T-Mobile stores are shutting down in the USA
In January 2023, T-Mobile announced that most of their territory managers would be let go. Although at first, it was thought to be mere internet rumour, it was only minutes before T-Mobile confirmed it as true.
The higher-ups at the company say that their decision to cut down on managers, as a result of cutting down on their physical stores, is part of a much larger restructuring effort. This may be the first step but it is certaintly not the last.
All the regional managers who lost their job will have to make a decision. Either downgrade to a mobile expert, or take a severance packet. Not a nice position to be in, but sometimes, that’s business.
According to Jon Freier, T-Mobile’s president, the company is reshaping itself for a “digitial first world”. Because the blunt reality is that people are now shopping online far more than they used to.
Although T-Mobile is going to become far more focused on their online store, some physical stores will still remain. These stores will mainly be for showing off T-Mobiles latest products, and wowing customers, to create social media hype.
However, all remaining T-Mobile stores will be operated either T-Mobile, or the managers. They will no longer be regionally operated, like they are today.
Why people prefer to shop online.
Just fifteen years ago, online shopping was very new, and most people were only just becoming aquainted with it. Today however, people can buy almost anything online. From mobiles phones to everyday groceries.
One reason for this is that it’s easier to compare prices. If you’re going to physical shops, it can take a long time to visit all the shops and find the cheapest option for your needs. However, with online shopping, you can do the same task within minutes.
Additionally, online shops can be much cheaper than physical stores. This is because physical stores have all sorts of additional costs that online stores don’t have, such as staff wages, lighting and heating, cleaning fees, etc.
Furthermore, these days, there are more and more products that no longer need a phsyical delivery. For example, you don’t need to buy a DVD when you have Netflix.
Now that more phones are coming with eSIMs, those who wish to change providers can do by pressing a few buttons on their phone. The need to wait for a SIM card delivery, or go to a corner store for a SIM card are numbered.
Finally, we also have the social apsect. For one reason or another, some people want to have as little social interaction as possible; a problem which has become worse since Covid-19.
Why moving everything online may be problematic
Although online shopping undoubtedly has benefits, one issue is that many older people struggle to use the internet. To expect people who are completely unfamilar with the online world to suddenly change their lifestyle is completely unrealistic.
For T-Mobile, this doesn’t matter too much as most of their customers are between 18-40, an age group who are familiar with the modern, online world. However, it could have a domino effect onto other industries, where older people can become impacted.
There are additional problems that even young people can face with doing everything online. The main one being that the internet isn’t always reliable, and can shut down at any point. If someone has an issue with their phone, but cant Google the solutution, it can cause distress and annoyance.
What are the solutions
There are many solutions to some of the afformentioned problems, and many phone companies already implement some of these.
Most Telcos offer an online chat service, where customers can talk directly to a member of staff who can guide them through any issues they might face. Also, most will also have a phone line that people can call should their internet go down.
Will this happen in Australia
It’s almost certain that more physical stores will shut down, and businesses will become exclusively online. However, because Australia has an aging population, for a long while yet, there will still be people who do not use the internet, and need a physical store to go about their daily business.
Even within the ever-online telecoms industry, you might have to wait longer than you think before all the stores close down.
Conclusion
It’s not hard to see why T Mobile have closed many of their stores stateside. Both the real estate and staffing are very expensive for phone companies and the world is moving closer to online shopping and eSIMs every day.
There is every chance that we will see similar things happening over here. Not only is this a big change for the industry, in a way, it’s a shame. Telco stores are good places to have a human interface, get advice from real people face to face and even, from time to time, to pay a bill. If we’re to move away from high street outlets telcos will need to provide accessible ways to achieve the same things through other – online channels.