Simbe, the leading provider of Store Intelligence™ solutions that increase retailer performance through unprecedented visibility and insights, released a new study in collaboration with Coresight Research, a leading research and advisory firm specializing in retail and technology. According to the report, The State of In-Store Retailing: Opportunities To Redefine Operations, the majority of retailers are investing, or planning to invest, in new in-store technology solutions to improve performance across inventory management, operations, and planning.
The report surveyed 150 retail decision-makers across the U.S. to assess industry pain points and technology adoption. The findings revealed that retailers are experiencing significant challenges – and revenue losses – related to managing operations across the store, including out-of-stocks, price and promotion execution, planogram compliance, e-commerce fulfillment, and assortment planning:
- Everyday operational challenges remain widespread across retail. An overwhelming number of retailers report significant challenges with core business functions, including managing out-of-stocks (92%), executing price and promotions (96%), planogram compliance (93%), and assortment planning (93%).
- Retailers report in-store inefficiencies costing at least 4.5% revenue. Over 70% of respondents lost at least 5% operating margin in each area of out-of-stocks, price and promotion execution, planogram compliance and allocation and assortment planning. On average, retailers lost 4.5% of revenue to these inefficiencies. Addressing these issues would drive an additional revenue opportunity for retailers of $127.9 billion in 2024, growing to $143.3 billion in 2027, Coresight Research estimates.
- Misexecuted promotional campaigns are the most challenging in-store inefficiencies. The majority of respondents have seen high mispricing rates (75%) and improperly executed promotional campaigns (81%) — and nearly one in five retailers report a mispricing rate of more than 15%.
- Retailers lack visibility into key business functions. Respondents report low visibility into out-of-stocks (45%), planogram compliance (43%), price and promotion (40%) and assortment planning (32%).
“Modern retail has simply become too dynamic for status quo tools, and retailers who fail to adapt are experiencing the financial ramifications,” said Deborah Weinswig, CEO and Founder of Coresight Research. “As the retail technology industry continues to advance, we’re seeing more leaders invest in proven AI- and data-based solutions that drive efficiencies and enhance transparency throughout the store. This study underscores the critical role of store intelligence in closing the revenue and information gaps that exist .”
For more such updates, follow us on Google News Martech News