New Simbe study flags urgent need for intelligent retailers to digitise stores using AI and automation

Retailers are hemorrhaging $162.7 billion in lost margin each year due to in-store inefficiencies - a 27% increase from 2024 - and pressure is rising, according to a new study from Coresight Research and Simbe.

This highlights an urgent need to digitise stores using AI and automation, with the findings demonstrating how top retailers are closing the execution gap and why others risk falling permanently behind.

“Industry leaders are no longer asking if stores will become intelligent, but when,” says Brad Bogolea, CEO and Co-founder of Simbe. “Retailers need a real-time view of what products are on shelves, where they are, and whether they’re priced correctly. We built Simbe to help retail teams answer those questions - automatically, at scale, and without guesswork.”

It's official 🎉 We're expanding our partnership w/ grocer & distributor SpartanNash to bring Simbe's tech to over half of their corporate owned stores!

Why? Our partners describe how they're using our market-leading data & analytics best in this video👇 https://t.co/RFV4PDyOmD

— Simbe Robotics (@simberobotics) February 13, 2024

Key findings from the report:

Retailers now lose 5.5% of gross sales to in-store inefficiencies - up from 4.5% in 2024 - representing a $162.7 billion opportunity across key US sectors including grocery, mass merchandise, drugstore, DIY, and warehouse clubs.

81% of retailers report losing at least 5% of operating margin due to in-store inefficiencies, up from 75% last year.

Shrink (42%), manual tasks (39%), and high employee turnover are the biggest contributors to store inefficiencies.

Promotion execution errors are now the top operational challenge (39%), followed by product pricing errors (37%) and misplaced or missing items on shelves (37%).

66% of retailers have begun implementing store intelligence technologies, but only 20% have fully scaled them, leaving a significant opportunity for early movers.

Planned investment in store intelligence technologies is up 151% year-over-year. Shelf-digitisation technologies, including robotics, saw the largest jump in adoption, with a 16-point increase.

“The next 12–18 months will determine who leads retail’s next era,” says Deborah Weinswig, CEO and Founder at Coresight Research. “Retailers that fail to adopt holistic store intelligence strategies risk falling into a permanent margin disadvantage as automation reshapes in-store execution.”

RTIH AI in Retail Awards

RTIH, organiser of the industry leading RTIH Innovation Awards, proudly brings you the first edition of the RTIH AI in Retail Awards, which is now open for entries. 

As we witness a digital transformation revolution across all channels, AI tools are reshaping the omnichannel game, from personalising customer experiences to optimising inventory, uncovering insights into consumer behaviour, and enhancing the human element of retailers' businesses.

With 2025 set to be the year when AI and especially gen AI shake off the ‘heavily hyped’ tag and become embedded in retail business processes, our newly launched awards celebrate global technology innovation in a fast moving omnichannel world and the resulting benefits for retailers, shoppers and employees.

Our 2025 winners will be those companies who not only recognise the potential of AI, but also make it usable in everyday work - resulting in more efficiency and innovation in all areas.

Winners will be announced at an evening event at The Barbican in Central London on Wednesday, 3rd September.

This will kick off with a drinks reception in the stunning Conservatory, followed by a three course meal, and awards ceremony in the Garden Room.

Please email our Editor, Scott Thompson, if you have any questions or need further information: scott.thompson@retailtechinnovationhub.com

Key 2025 dates

Friday, 18th July: Award entry deadline 

Tuesday, 22nd July: 2025 finalists revealed

Wednesday, 23rd July - Friday, 8th August: Judging days

Wednesday, 3rd September: Winners announced at the 2025 RTIH AI in Retail Awards Ceremony, to be held at The Barbican in Central London.