Scandit, the leader in smart data capture, and IHL Group, a global research and advisory company focused on the retail industry, have today released new research which reveals that shelf intelligence has become a strategic imperative with retailers moving decisively to invest in technologies that drive inventory accuracy, profitability, and customer satisfaction. IHL Group’s research spanned over 400 retailers across grocery, mass merchants, warehouses, drug stores, and convenience store segments in the US and EMEA.
Inventory issues including out-of-stocks, overstocks and misplaced items remain a critical challenge for retailers, equating to $1.73 trillion in lost sales annually, hitting retailer profitability in tandem. Consequently, inventory visibility ranks second as a technology investment priority behind personalization of the customer experience, according to the research. However, retailers with profit growth of 10%+ are investing 208% more in inventory visibility solutions than profit laggards.
As the appetite for shelf intelligence deployment rises, retailers expect multiple benefits, including increased customer satisfaction (57%), reduced labor costs (55%), on-shelf availability lifts (49%) and higher store associate productivity (38%).
Maturing shelf intelligence solutions demonstrate measurable returns
The research highlights the maturity shift from early shelf intelligence deployments which struggled with integration challenges, high costs, and immature AI models. AI spending by retailers is projected to grow by 29% from 2025 to 2026. More retailers are now identifying as early adopters, with retail’s profit winners 94% more likely to invest in shelf intelligence solutions than their struggling peers. Early adopters are recognizing a willingness to embrace operational transformation rather than settle for incremental improvements.
Greg Buzek, President and Chief AI Officer at IHL Group commented, “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.”
When deploying shelf intelligence, retailers who have adopted a hybrid data capture strategy – using multiple methods, such as autonomous robots, fixed cameras and mobile devices – are 64% more likely to be early adopters. These same retailers are also 136% more likely to maintain profitability leadership. Over the course of the next 12 months, 36% plan to adopt a hybrid data capture strategy demonstrating allocated budgets and implementation timelines – the single highest amongst planned shelf technologies. A further 21% are planning within the next 24 months, highlighting a market with momentum.
Christian Floerkemeier, CTO and co-founder at Scandit said, “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.”
