Omnichannel

More retailers tapping tech to improve store associate productivity

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January 15, 2025

The labor challenges facing retail are driving more retailers to invest in technology, with 81% prioritizing tech investment to improve store associate productivity.

Staffing is the most pressing challenge, with 98% of grocery retailers and 88% of specialty retailers struggling to hire and retain workers.

Those are findings from the "2025 Connected Retail Experience Study: Mobility is Driving Associate Productivity" report by Incisiv, conducted in collaboration with Verizon Business and Cisco.

The study also revealed the number of retailers deploying mobile app will double by 2026, according to a press release, with 42% of retailers planning to implement mobile apps with in-store features, up from 19% currently.

The annual study, now in its fourth year, identified additional major trends reshaping the retail landscape.

Understanding that personalization is the key to success, retailers struggle with the ability to scale this "segment of one" approach. Only 13% of retailers are satisfied with their current personalization strategies, as most lack the capabilities for individualized personalization and are limited to basic segmentation tactics.

Retailers are taking a more focused approach to AI, prioritizing use cases with clear return-on-investment and strong organizational demand. 90% of retailers believe AI adoption will be necessary to compete in the future and 49% are actively testing or implementing AI solutions. Top priorities include workforce optimization to address labor shortages and enhance inventory management.

"Retail is at a turning point," Gaurav Pant, chief insights officer at Incisiv, said in the release. "The focus on convenience, driven by labor challenges and changing consumer expectations, is fundamentally reshaping how retailers approach technology investment and customer experience."