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NEW YORK — Retailers are rapidly accelerating the adoption of digital technologies to address critical labor shortages, improve operational efficiency, and adapt to shifting consumer expectations. This transformation is detailed in the 2025 Connected Retail Experience Study: Mobility is Driving Associate Productivity by Incisiv, conducted in partnership with Verizon Business and Cisco. The study highlights a significant pivot toward leveraging technology to overcome persistent macroeconomic pressures, including staffing difficulties and supply chain inefficiencies.
The 2025 Connected Retail Experience Study clearly shows a rapidly transforming industry. With mobile apps poised to become a cornerstone of retail operations and AI playing an increasingly strategic role, retailers must prioritize scalable infrastructure and innovative solutions to stay ahead in an evolving marketplace. Retailers aim to meet labor challenges head-on, streamline operations, and deliver a more personalized and efficient customer experience by doubling down on mobile and AI technologies.
The annual report, now in its fourth year, emphasizes the growing importance of mobile and AI solutions in helping retailers navigate these challenges. With plans to double the use of mobile apps by 2026, retailers are making bold investments in scalable infrastructure and personalized engagement strategies to remain competitive in an increasingly digital retail landscape.
Four Key Trends Shaping Retail Transformation
- Critical Labor Challenges Drive Technology Investment
Labor shortages remain the most pressing concern, with 98% of grocery retailers and 88% of specialty retailers struggling to hire and retain store associates. In response, 81% of retailers prioritize technology investments that enhance associate productivity for 2025. - Mobile Technology Becomes a Cornerstone for Success
Mobile solutions are emerging as the backbone of retail operations. By 2026, 42% of retailers plan to deploy mobile apps with in-store features, up from just 19% currently. These tools streamline workflows, empower employees with real-time insights, and elevate customer service. - Personalization at Scale Remains a Challenge
Although personalization is recognized as vital for engaging modern consumers, only 13% of retailers are satisfied with their strategies. Many remain limited to basic segmentation, highlighting a significant opportunity to invest in advanced tools for scaling individualized customer experiences. - AI Adoption Focuses on High-Value Use Cases
Retailers are increasingly leveraging AI to address labor challenges and improve inventory management. Ninety percent of retailers view AI as critical for future competitiveness, and 49 percent are actively testing or implementing AI solutions to optimize workflows and enhance decision-making.
"Retail is at a turning point," said Gaurav Pant, Chief Insights Officer at Incisiv. "Driven by labor challenges and evolving consumer expectations, retailers are fundamentally reshaping their approach to technology investment and customer experience."
James Hughes, Retail CTO at Verizon Business, highlighted the need for robust infrastructure. "As retailers deploy AI-enabled inventory tracking, video analytics, and mobile apps, networks must meet increasing demands. Solutions like 5G business internet, private networks, and mobile connectivity are essential to ensure speed, resiliency, and consistent connectivity across retail operations."
Sabrina Gonzalez, Global Retail Marketing at Cisco, stressed the importance of adaptable technologies. "Retailers are increasingly focused on modular, intelligent solutions that provide smarter insights and faster decision-making, enabling them to navigate their digital transformation journeys more effectively."
