Will an In-Store Retail Tech 'Confidence Gap' Create Winners and Losers?

According to research conducted by Retail Systems Research (RSR) on behalf of Jumpmind -- titled "How Retailers Can Modernize In-Store Tech with Confidence" -- there is an observable and significant disconnect between contemporary consumer expectations around in-store retail tech and the ability of many retailers to meet these asks.

"The physical store remains central to retail’s future. Despite the growth of digital commerce, many retailers still point to the store as their primary growth strategy. Yet paradoxically, many admit their in-store technology lags in delivering what today’s customers expect," the report authors wrote.

"Shoppers now walk into stores already armed with product research, price comparisons, and personalized digital experiences. When they encounter outdated systems or disconnected in-store tools, the result is friction and disappointment. Retailers know this — but many still hesitate to modernize. The issue is not awareness of the opportunity, but a lack of confidence in how and where to invest," they added.

Other notable findings related to the "confidence crisis" facing in-store retailers when it comes to adoption and integration of new tech:

• More than one-third (34%) of retail decision-makers surveyed said their organizations were unable to keep up with consumer adoption of new technologies.
• Slightly fewer respondents (31%) suggested that their existing systems weren't up to snuff when it comes to meeting expectations set out by today's customers and employees.
• The same percentage (31%) stated that they saw in-store retail tech investment as prohibitively expensive.

Many Retailers Hesitate To Adopt In-Store Retail Tech: Barriers and Legacy Lag

Breaking down the most common barriers keeping retailers from making serious investments in tech at their physical footprints, a majority of those polled indicated that technology was shifting too frequently to keep up with (54%), nearly half (49%) exhibited concerns over difficulty in quantifying ROI, while 38% pointed to the high overall cost of ownership tied to these investments, and a slightly smaller cohort (37%) had mixed feelings over whether new tech installations would serve as tools or distractions.

Further, a significant proportion of respondents (30%) admitted that "our infrastructure prevents progress," with antiquated or obsolete technological infrastructure meaning that adoption of the latest tech solutions was impossible without an entire restructuring.

“Our research shows 27% of retailers have Point of Sale systems that are 5 years or older. In contrast, most consumers renew cell phones every two to three years and 12% renew them every year. It’s no wonder that over half of retailers surveyed feel trying to keep up with consumer adoption of technology seems like an impossible task,” said Steve Rowen, managing partner at RSR.

Winners in Retail Adopting In-Store Tech in Greater Frequency, Survey Suggests

In the press release detailing the release of the RSR-Jumpmind research, a delineation between surveyed retailers categorized as winners -- who "showed greater ambition and momentum" in their retail tech modernization efforts -- and "average" and "under performers" was posited.

Among these related survey outcomes:

• A striking majority (73%) of "retail winners" stated plans to deploy a single app to manage employee access to all required functionalities, versus 59% for average performers and under performers.
• Two-thirds (66%) of winners had plans to implement in-store, real-time, cross-channel customer and order information. A significantly lower cohort (51%) of average performers and under performers shared these plans.
• The same percentage of winners (66%) stated plans to have mobile devices serve as POS unit options, set against 58% of average performers and lower performers who said the same.
• About 63% of winners outlined intentions to install in-store fulfillment solutions involving tech. Approximately 55% of average performers and under performers answered similarly.

“Retailers must gain the confidence needed to move from hesitation to innovation in their in-store technology deployments,” said Lauren Cevallos, head of strategy and customer success at Jumpmind.

“Ultimately, confidence itself becomes a competitive strategy. Those who have it will transform their stores into hubs of digital-physical engagement; those who don’t risk being left behind," Cevallos added.