Retailers struggle to meet in-store tech demands: Study

While the vast number of retailers (85 per cent) said the store remains their primary growth channel, 65 per cent admit their current technology stack doesn’t enable the customer experience they want and need to deliver.

The research surveyed both retail executives and store managers in December 2024 through January 2025 to understand opportunities, threats, gaps and technology spending priorities, as retailers aspire to meet shopper expectations.

Point of sale (POS), which functions as the store operating system, is a particular pain point for retailers. The study reveals retailers are struggling to execute the most basic functions for store operations at a time when retailers are increasingly leaning into POS to drive more innovative and inspired in-store engagement models. 

Less than half (47 per cent) said their POS system supports an innovative or differentiated store experience, and one third report it’s actively holding them back. Less than half of retailers report strong satisfaction with their POS’ ability to provide a seamless checkout process, provide digital receipts, support ‘endless aisle’ ordering from e-commerce or a warehouse, integrate with loyalty programs and effectively manage returns.

Many retailers (34 per cent) said that consumer adoption of new tech is simply moving so fast, they can’t keep up, while others (31 per cent) said new tech is prohibitively expensive. More than half (54 per cent) said tech changing too often is a top inhibitor to taking advantage of opportunities to improve the store.

Most, however, feel confident in investing in mobile functionality in the store, with 63 per cent ranking mobile devices for associates that free up store managers’ time and offer operational visibility as ‘high value’. Additionally, 70 per cent of retailers have planned investments in assisted selling and endless aisle capabilities within the next 12 to 18 months.

Investing in the tech-driven transformation of stores in 2025 will be critical for retailers that want to compete against emerging competitors. More than two in five respondents (41 per cent) said the rise of online competitors is eroding the value of stores, while 38 per cent said direct-to-consumer retail is undermining the store’s significance and 28 per cent consider e-commerce same-day shipping a threat. More than one third (36 per cent) said the fact that consumers are more hyper-informed and demanding than ever is a top threat to their business, with 35 per cent admitting they can’t provide the level of service consumers expect.

“Many retailers have yet to crack the code on creating relevant and inspired in-store shopping experiences and time is running out,” said Joe Corbin, Jumpmind president and CEO. “As inflation continues to impact consumer spending, it’s absolutely critical for retailers to create compelling and seamless in-store experiences that deliver value and differentiation and empower both associates and shoppers.”

“While the past two decades have brought enormous technological potential to retail, the store of the future remains an elusive vision for many,” said Steve Rowen, managing partner at RSR. “Fortunately, low-cost, fully featured, consumer-grade technology is now available for far less capital investment than older store systems. Retailers remain ‘all in’ on stores and have significant funds set aside to invest in technology, so we expect 2025 to be an exciting year.”

ALCHEMPro News Desk (RR)