#USA #Zurich #Shelf Intelligence #Scandit #IHL Group

Introduction

In today's retail landscape, the effectiveness of inventory management is crucial for success. Recent research conducted by IHL Group in collaboration with Scandit highlights the emergence of shelf intelligence as a transformative approach that retailers are now recognizing as vital to their profitability and operational efficiency.

The Strategic Imperative of Shelf Intelligence

According to the findings published by Scandit and IHL Group, over 400 retailers across various segments, including grocery stores and convenience shops, revealed significant insights into the challenges and opportunities associated with inventory management. Retailers face staggering losses due to inventory issues, such as out-of-stocks, overstocks, and misplaced items, which collectively amount to an astonishing $1.73 trillion in lost sales annually.

The cost associated with ineffective inventory management transcends mere financial losses; it also impacts customer satisfaction and loyalty. As such, retailers are increasingly prioritizing technology investments to enhance inventory visibility, coming in second only to improving personalization in customer experiences. What's particularly noteworthy is how successful retailers—those enjoying over a 10% profit growth—are investing 208% more in inventory visibility solutions compared to their struggling counterparts.

Benefits of Investing in Shelf Intelligence

As the need for effective shelf intelligence solutions becomes more apparent, retailers anticipate numerous advantages from its deployment. Research indicates that 57% are looking to enhance customer satisfaction, 55% aim to reduce labor costs, and 49% hope for improved on-shelf availability. Additionally, investing in shelf intelligence can boost store associate productivity by 38%. These numbers emphasize the potential for enhanced operational performance through technology.

Evolving Shelf Intelligence Solutions

The research highlights a shift in retailers' approach to shelf intelligence solutions. Initial deployments faced challenges such as integration issues, expensive implementations, and immature AI models. However, there's a maturation underway as retail leaders recognize the competitive necessity of these technologies. In fact, AI spending within the sector is anticipated to jump by 29% from 2025 to 2026—an indicator of evolving attitudes toward technology adoption.

Notably, those classified as early adopters—particularly successful retailers—are 94% more likely to invest in comprehensive shelf intelligence solutions than those still struggling to keep pace. Early adopters are more inclined to embrace operational transformation that goes beyond marginal improvements, signifying a new era in retail strategy management.

The Hybrid Data Capture Strategy

Another compelling finding from this research is that retailers utilizing a hybrid data capture strategy, which employs a combination of autonomous robots, fixed cameras, and mobile devices, display a 64% higher likelihood of being early adopters of shelf intelligence. Moreover, these retailers are 136% more likely to maintain profitability leadership in their market segments.

Over the next year, a significant 36% of retailers plan to adopt hybrid data capture methods, demonstrating extensive budget allocations and planned implementation timelines—marking the highest among similar planned technologies. An additional 21% have plans to adopt within the next two years, a clear indication of momentum within the industry.

Conclusion: Embracing the Shift

Christian Floerkemeier, CTO and co-founder of Scandit, aptly summarizes the transition by stating, “Grocers and other retailers are no longer asking whether shelf intelligence works—they are asking how fast they can scale it.” These statements echo a broader trend observed in retail engagements across North America and Europe, where increased deployments have resulted in on-shelf availability enhancements of around 5%, positively affecting profit margins.

In conclusion, the findings from the collaboration between Scandit and IHL Group reveal a crucial shift in how retailers perceive and implement shelf intelligence strategies. With rising investor interest and substantial projected growth in AI spending, the retail sector is poised for a significant transformation that centers around utilizing smart data capture to streamline operations and enhance customer experiences. As the landscape evolves, retailers who quickly adapt to these changes will likely distinguish themselves from the competition and achieve substantial business growth.