Scandit and IHL Group have released research indicating that shelf intelligence has emerged as a crucial strategic focus for retailers. This shift comes as businesses increasingly invest in technologies aimed at enhancing inventory accuracy, boosting profitability, and elevating customer satisfaction. The study surveyed over 400 retailers across various segments, including grocery, mass merchants, warehouses, drug stores, and convenience stores in the US and EMEA.
Inventory challenges such as out-of-stocks, overstocks, and misplaced items continue to pose significant problems for retailers, resulting in approximately $1.73 trillion in annual lost sales. These issues directly impact profitability. As a result, inventory visibility has been identified as the second priority for technology investment, following the personalization of customer experiences, according to the findings. Notably, retailers experiencing profit growth exceeding 10% are investing 208% more in inventory visibility solutions than those that are struggling.
As the demand for shelf intelligence technologies grows, retailers anticipate various benefits. Among these, 57% expect increased customer satisfaction, 55% foresee reduced labor costs, 49% aim for improved on-shelf availability, and 38% predict higher productivity among store associates.
The research highlights a maturation in shelf intelligence solutions, moving past early deployments that faced challenges related to integration, high costs, and underdeveloped AI models. Retailers” spending on AI is forecasted to rise by 29% from 2025 to 2026. More retailers are now identifying as early adopters, with those achieving profit growth being 94% more inclined to invest in shelf intelligence than their less successful peers. Early adopters are increasingly open to operational transformation rather than merely seeking incremental improvements.
Greg Buzek, President and Chief AI Officer at IHL Group, remarked, “While digital transformation has dominated the retail industry for the last decade, inventory accuracy and shelf availability continue to erode profitability. Our new research demonstrates that shelf intelligence technology has matured to a competitive necessity, and retailers who have embraced this shift are breaking away from the pack.”
Retailers deploying shelf intelligence who utilize a hybrid data capture strategy—incorporating methods such as autonomous robots, fixed cameras, and mobile devices—are 64% more likely to be early adopters. Additionally, these retailers are 136% more likely to maintain leadership in profitability. Over the next year, 36% plan to implement a hybrid data capture strategy, the highest among all planned shelf technologies. Another 21% aim to adopt this strategy within the next 24 months, indicating a market gaining momentum.
Christian Floerkemeier, CTO and co-founder of Scandit, stated, “Grocers and other retailers are no longer asking whether shelf intelligence works — they”re asking how fast they can scale it. The data confirms what we are seeing in real-world engagements across North America and Europe where deployments are increasing, on-shelf availability rises of 5% are being realized and bottom lines are being positively impacted, underlining the overall strategic imperative.”
This research underscores the growing significance of shelf intelligence in the retail sector, as businesses adapt to enhance their operational efficiency and customer experience.
