#None #Shelf Intelligence #Scandit #IHL Group

The Rise of Shelf Intelligence in Retail

In a rapidly evolving retail landscape, the importance of inventory management and customer satisfaction cannot be overstated. Latest research conducted by IHL Group, in collaboration with Scandit, highlights shelf intelligence as a crucial strategic necessity for retailers aiming for competitive advantage. With over 400 retailers surveyed from grocery stores to department chains, this research underscores the urgent need for businesses to optimize their inventory visibility and efficiency.

The Cost of Inventory Issues

Inventory discrepancies, including out-of-stocks and overstocks, have led to an estimated $1.73 trillion in lost sales annually across the retail sector. This staggering figure emphasizes the importance of accurate inventory management not just for revenue but also for profitability. As retailers strive to enhance customer experiences, inventory visibility has been identified as a key area for technology investment. This shift is particularly pronounced among retailers reporting a profit growth of over 10%, who are allocating more substantial budgets—208% higher—toward inventory visibility solutions than those whose profits are lagging.

Rising Demand for Shelf Intelligence

As the appetite for sophisticated shelf intelligence technologies increases, retailers expect significant benefits. The research indicates that 57% anticipate improvements in customer satisfaction, while 55% expect reductions in labor costs and enhanced productivity among store associates. Meanwhile, the statistic that 49% foresee increased on-shelf availability demonstrates the widespread recognition of these technologies’ impact.

Mature shelf intelligence solutions now offer tangible returns, marking a transition from early deployments hampered by integration challenges and cost barriers. As retailers begin to embrace these advanced technologies, AI investments in the retail sector are set to surge by 29% between 2025 and 2026.

The Shift Towards Early Adoption

The report highlights a crucial behavioral shift within the retail sector; businesses that previously hesitated are now positioning themselves as early adopters of shelf intelligence. Retailers leading in profitability are 94% more likely to invest in these systems compared to their less profitable counterparts. This transition indicates a broader willingness to pursue operational transformations rather than settling for minor improvements.

Greg Buzek, President of the IHL Group, noted that while digital transformation has been a buzzword for a decade, the accuracy of inventory and ease of access to products have emerged as contributors to profitability. He emphasized, “Our new research demonstrates that shelf intelligence technology has matured to a competitive necessity.”

Embracing Hybrid Data Capture Strategies

Among the surveyed retailers, those adopting hybrid data capture strategies—which incorporate multiple data collection methods like autonomous robots, fixed cameras, and mobile devices—are 64% more likely to be early adopters of shelf intelligence. The effectiveness of these hybrid strategies is evident in their strong correlation with sustained profitability. In fact, over the next year, 36% of retailers plan to implement a hybrid data capture approach, with 21% looking to do so within the next 24 months.

Christian Floerkemeier, Scandit’s CTO and co-founder, remarked that retailers are shifting their mindset from questioning the efficacy of shelf intelligence to aggressively scaling its implementation. “As deployments rise, we’re observing significant gains in shelf availability and positive impacts on bottom lines,” he noted.

Conclusion

As retailers face mounting pressures to enhance profitability and improve the customer experience, embracing shelf intelligence will be essential for staying competitive in 2025 and beyond. The comprehensive insights from this research underscore the urgency of investing in this critical technology, paving the way for a more efficient and customer-oriented retail ecosystem.

For more detailed insights, you can access the full report and related resources at Scandit's official website.