With technology playing an increasingly central role in shifting consumer expectations and persistent labour challenges, retailers are focusing on innovative solutions, such as mobile apps, to stay competitive and meet market demands.
According to the 2025 Connected Retail Experience Study, conducted by Incisiv in partnership with Verizon Business and Cisco, digital investments are emerging as a key strategy to enhance efficiency and address operational hurdles. Mobile technology and artificial intelligence (AI) have become focal points as retailers seek to empower their workforce and deliver better customer experiences.
The study reveals a significant rise in the adoption of mobile solutions, with the number of retailers deploying in-store mobile apps expected to more than double by 2026, increasing from 19% to 42%. These apps are viewed as essential tools to enhance associate productivity and streamline operations in an industry grappling with hiring and retention challenges. Grocery retailers, in particular, are feeling the strain, with 98% identifying staffing as their top operational hurdle.
AI is also becoming a strategic focus, with nearly half of retailers actively testing or implementing AI-driven solutions. These include workforce optimisation tools and enhanced inventory management systems, both aimed at mitigating the impact of labour shortages. The study shows that 90% of retailers view AI adoption as essential for staying competitive, particularly for high-value use cases with clear returns on investment.
Despite these advancements, retailers continue to face challenges in delivering personalised experiences at scale. While personalisation is widely acknowledged as a critical driver of customer loyalty, only 13% of retailers report being satisfied with their strategies. Most rely on basic segmentation, falling short of the “segment of one” approach needed for individualised customer experiences.
“Retail is at a turning point,” said Gaurav Pant, Chief Insights Office at Incisiv. “The focus on convenience, driven by labour challenges and changing consumer expectations, is fundamentally reshaping how retailers approach technology investment and customer experience.”