Omnichannel

Retailers planning big tech investments to drive efficiency

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July 2, 2025

Retailers are expected to spend big in tech given pricing volatility and shrinking margins.

The projected spend represents a 151% surge, according to a report, "The State of In-Store Retailing 2025," from Coresight Research and Simbe.

Lost margin is costing retailers $162.7 billion each year due to in-store inefficiencies, a 27% jump from 2024, according to a press release on the report's findings.

Additional findings include:

• Retailers now lose 5.5% of gross sales to in-store inefficiencies — up from 4.5% in 2024 — representing a $162.7 billion opportunity across key U.S. sectors including grocery, mass merchandise, drugstore, DIY and warehouse clubs.
• 81% of retailers report losing at least 5% of operating margin due to in-store inefficiencies, up from 75% last year.
• Shrink (42%), manual tasks (39%), and high employee turnover are the biggest contributors to store inefficiencies.
• 66% of retailers have begun implementing store intelligence technologies, but only 20% have fully scaled them — leaving a significant opportunity for early movers.

"The next 12 to 18 months will determine who leads retail's next era," Deborah Weinswig, CEO and founder of Coresight Research, said in the release. "Retailers that fail to adopt holistic store intelligence strategies risk falling into a permanent margin disadvantage as automation reshapes in-store execution."