Coresight Report
In-Store Inefficiencies Cost Retail $196B Annually Amid Misordered Tech Deployments
Technology sequencing, not investment level, is the critical variable in retail performance.
Why In-Store Inefficiencies Are Rising Despite Record Technology Investment
In-store inefficiencies now cost U.S. retailers 6.4% of gross sales annually — totaling $196.4 billion across key retail sectors, up from 5.5% in 2025 and 4.5% in 2024.
According to Coresight Research’s report, The State of In-Store Retailing 2026, retailers are deploying pricing software, supplier collaboration platforms, and analytics tools before establishing the shelf-level data those systems depend on to perform. This unoptimized technology sequencing creates the gap between technology investment and ROI.
Store technology adoption is nearly universal: 97% of retailers have deployed or plan to deploy store intelligence within the next year, and 60% have already scaled or are actively scaling. Yet losses continue to accelerate alongside adoption.
What Retail Leaders Say About Shelf Digitization
“Store technology decisions this year will shape competitive positions for decades. Our data shows that prioritization determines return. Retailers that deploy shelf digitization technology first build a compounding advantage that is difficult to replicate.”
Deborah Weinswig
CEO and Founder, Coresight Research
“A digitized shelf is the foundation that every retail system depends on. Leading retailers have modernized operating models with data that flows seamlessly across store operations, supply chain, and digital channels. This shift improves execution across the store while enabling teams to focus on higher-value work for the customer.”
Caitlin Allen
Senior Vice President of Market, Simbe
“Shelf intelligence must come first, or every downstream system will fall short. If you don’t have a reliable view of what’s actually in your stores, nothing else works.”
Kim Anderson
VP of Store Operations Support, Schnucks Markets
“What this research shows is that isolated technology decisions create isolated results. Retailers see the biggest gains when store data flows seamlessly into supply chain, merchandising, and pricing decisions. That’s how you reduce inefficiencies at scale and ensure every system is working from the same version of reality.”
Doug Iverson
SVP, RELEX Solutions
By the Numbers
Key statistics from The State of In-Store Retailing 2026, produced by Coresight Research in partnership with Simbe and RELEX Solutions.
$196.4B
Annual cost of in-store inefficiencies across key U.S. retail sectors (2026)
6.4%
Share of gross sales lost to in-store inefficiencies (up from 5.5% in 2025, 4.5% in 2024)
33%
Retailers currently investing in shelf digitization — the lowest share of any store intelligence technology, despite downstream systems dependence on shelf-level data to perform
11%
Increase in customer lifetime value reported by retailers using store intelligence technology
Key Findings: The State of In-Store Retailing 2026
Investment has increased, but losses are accelerating.
60% of retailers have already scaled or are actively scaling store intelligence technologies, up 18 percentage points year over year, according to The State of In-Store Retailing 2026. Yet in-store inefficiencies cost retailers 6.4% of gross sales annually — up from 5.5% in 2025 and 4.5% in 2024, totaling $196.4 billion across key U.S. retail sectors.
Technology sequencing determines competitive advantage.
Only 33% of retailers are investing in shelf digitization, according to The State of In-Store Retailing 2026. Many prioritize pricing and supplier systems first, despite those systems’ reliance on shelf-level data to perform. Not having established that shelf digitization foundation limits return.
Retailers with digitized shelves are seeing enterprise-wide gains.
At NRF’s State of Retail & the Consumer 2026, BJ’s Wholesale Club CEO Bob Eddy shared that Tally enables associates to fulfill orders up to 40% more efficiently. Schnucks Markets detects 14x more addressable out-of-stocks and has reduced out-of-stock items by 30%, according to Progressive Grocer.
Store intelligence elevates retail labor.
With AI-powered store technology, store teams reallocate 86% of time previously spent on manual tasks toward higher-value work, including merchandising, product expertise, and the customer experience, according to The State of In-Store Retailing 2026.
Read the Full Report
The technology decisions retailers make this year will shape competitive positions for years to come. Download The State of In-Store Retailing 2026, published by Coresight Research in 2026.
“We’re finding new ways to use Tally and the data it provides every day, and we’ll continue to build on the use of AI.”
Bob Eddy
Chairman and CEO
"Shelf intelligence and the data foundation it creates must come first, or every downstream system will fall short of expectations. If you don’t have a reliable view of what’s actually in your stores, nothing else works."
Kim Anderson
VP of Store Operations
Frequently Asked Questions
About the Research: Methodology
The State of In-Store Retailing 2026 was produced by Coresight Research in partnership with Simbe and RELEX Solutions. Coresight Research conducted the survey across 200 U.S.-based retail decision-makers from February 26 to March 6, 2026. Respondents were vice president-level or above with direct familiarity with in-store retail media initiatives and technologies. All respondents represent retail companies, spanning DIY, apparel and footwear, beauty, consumer electronics, luxury, and grocery, with annual revenues of at least $100 million.
IN PARTNERSHIP WITH
Coresight Research | RELEX Solutions
