Retail Technology
Retailers Race To Adopt Store Intelligence As Inefficiencies Swell To $162.7B And Threaten Margins
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New Report from Coresight Research and Simbe Shows 151% Surge in Planned Tech Investments Amid Pricing Volatility Labor Pressure, and Shrinking Margins
SAN FRANCISCO, June 17, 2025 (GLOBE NEWSWIRE) -- 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. The State of In-Store Retailing 2025 highlights an urgent need to digitize 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,” said 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.”
Key Findings from the Report:
- The Cost of Inefficiency: 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 U.S. sectors including grocery, mass merchandise, drugstore, DIY, and warehouse clubs.
- Mounting Margin Pressure: 81% of retailers report losing at least 5% of operating margin due to in-store inefficiencies, up from 75% last year.
- Labor-Related Challenges Drive Inefficiencies: Shrink (42%), manual tasks (39%), and high employee turnover are the biggest contributors to store inefficiencies.
- Execution Gaps Are Widening: Promotion execution errors are now the top operational challenge (39%), followed by product pricing errors (37%) and misplaced or missing items on shelves (37%).
- Technology Rising, But Still Underutilized: 66% of retailers have begun implementing store intelligence technologies, but only 20% have fully scaled them—leaving a significant opportunity for early movers.
- Investment Momentum: Planned investment in store intelligence technologies is up 151% year-over-year. Shelf-digitization 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,” said Deborah Weinswig, CEO and Founder of Coresight Research. “Retailers that fail to adopt holistic store intelligence strategies risk falling into a permanent margin disadvantage as automation reshapes in-store execution.”
Retailers using Simbe’s Store Intelligence™ platform are already realizing the benefits. For example, ShopRite leveraged Simbe’s autonomous Tally robot to cut out-of-stocks by 50% in one of its highest-volume stores. Other Simbe customers report 98%+ on-shelf availability and 90%+ improvements in pricing accuracy.
Download the Full Report:
Read The State of In-Store Retailing 2025 at https://www.simberobotics.com/resources/insights/coresight-report-2025.
About Simbe
Only Simbe’s Store Intelligence™ platform offers multimodal solutions to increase retail brands’ performance with unprecedented visibility and near real-time insights. Cutting-edge AI and robotics power business-critical intelligence that streamlines inventory management and store operations while elevating store teams and shoppers’ experiences.
Simbe’s comprehensive platform includes the world’s first autonomous, item-scanning robot, Tally, which identifies exact product location, stock level, and pricing & promotion information with market-leading computer vision. Simbe works with top global brands in the US, Europe, and Asia. For more information, visit www.simberobotics.com.
About Coresight Research
Coresight Research is a research and advisory firm specializing in retail and technology. Established in 2018 by leading global retail analyst Deborah Weinswig, the firm provides data-driven analysis and strategic advisory to clients including retailers, brands, enterprise technology companies, and accelerators. For more information, visit www.coresight.com.
Media Contact:
Press@simberobotics.com
Frequently Asked Questions
What is causing retailers to lose margin?
Retailers are losing margin primarily due to in-store inefficiencies, labor-related challenges, shrink, manual tasks, high employee turnover, and execution gaps such as promotion and pricing errors.
What technologies are retailers investing in?
Retailers are increasingly investing in store intelligence technologies, especially shelf-digitization technologies including robotics to improve inventory management and store operations.
How can store intelligence technologies help retailers?
Store intelligence technologies can provide real-time visibility of products on shelves, ensure accurate pricing, reduce out-of-stocks, improve on-shelf availability, and streamline store operations.
First published on Tue, Jun 17, 2025
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