The Enduring Importance of Physical Stores in Switzerland’s Competitive Telecommunications Market

In the competitive Swiss telecommunications market, major companies like Salt, Swisscom, and Sunrise continue to place a heavy emphasis on physical stores. This includes opening flagship stores in key locations such as Zurich’s Bahnhofstrasse. While digital channels are becoming increasingly popular, these companies still see physical stores as essential contact points for customers.

Telecom expert Ralf Beyeler notes that customers may be paying more for subscriptions with major brands compared to low-cost providers. However, the convenience of having access to in-store customer service is seen as a valuable benefit by many customers. Customers seeking assistance in person contrast with the profit-driven approach of providers using stores as sales channels.

Salt, the third-largest telecom company in the market, values its retail presence as a way to offer high-quality products and enhance customer experience. In contrast, Swisscom and Sunrise take different approaches with their retail strategies, including the use of separate low-cost brands like Wingo and Yallo. Despite variations in approach, all three companies recognize the importance of maintaining customer engagement and loyalty through personalized interactions.

Retail experts agree that the role of stores has evolved beyond traditional sales functions, with many brands now focusing on creating experiential and interactive spaces for customers. Examples of luxury car brands like Cadillac opening showrooms on Bahnhofstrasse highlight this trend of using physical locations to showcase products and build brand presence. This emphasis on brand presentation and customer engagement reflects a broader shift towards experiential retail in the telecommunications and other industries.