2025 State of the Industry Report: Transforming Retail Stores into Innovation Hubs
The retail sector is undergoing rapid transformation, driven by the evolving role of physical stores. Incisiv, in collaboration with Toshiba Global Commerce Solutions, has released the 2025 State of the Industry: Store Innovation report, offering insights into the industry’s challenges and opportunities as it transitions from traditional commerce models to creating experiential, community-centric, and digitally integrated spaces. Drawing on data from 440 global retail technology and business leaders, the report explores retail transformation trends and provides region-specific insights for Asia, Europe, Latin America, and North America.
Reimagining Retail: Beyond Commerce
“The future of retail lies in building a strong, flexible foundation that supports rapid innovation and seamless integration of new capabilities,” said Fredrik Carlegren, VP and Head of Marketing and Communications at Toshiba Global Commerce Solutions. “Leading retailers are redefining success by blending commerce, community, and content into groundbreaking experiential offerings that engage customers.”
This shift marks a pivotal moment for retailers. Giri Agarwal, Chief Strategy Officer at Incisiv, emphasized, “Our research shows that the challenge for retailers isn’t a lack of innovation intent or investment but a misalignment between ambitions and the ability to execute quickly. The future belongs to those who can reimagine their solutions to align with their strategic goals.”
Key Findings from the Report
- In-Store Personalization Gaps:
- Personalization is ranked as a top revenue driver by 46% of retailers. However, only 9% have achieved leading integration of digital and physical channels.
- Unified commerce platforms, currently utilized by 13% of retailers and planned by 44%, are seen as critical to enabling cross-channel personalization.
- Barriers to Rapid Experimentation:
- With 44% of retailers prioritizing faster technology rollouts, modularity is becoming key to store innovation.
- Modern tech stacks show a 73% improvement in reducing the time-to-market for in-store solutions.
- Balancing Security and Innovation:
- To tackle loss prevention and inventory accuracy, 50% of retailers plan to adopt AI-driven security systems within the next year.
- This approach is expected to reduce shrink rates for 75% of retailers and improve inventory accuracy for 79%.
- Sustainability as a Core Principle:
- Although sustainability is a growing priority, only 6% of retailers rate their store technologies as leaders in supporting sustainability goals.
- Efforts to extend technology lifecycles (43%) and reduce energy consumption (74%) reflect the industry’s commitment to aligning sustainability with operational efficiency.
The Path to Retail Transformation
The report highlights the importance of future-ready technology architectures that foster agility and sustainability. By transforming physical stores into dynamic innovation hubs, retailers are setting new standards in customer engagement and operational excellence.
Carlegren added, “Retailers adopting sustainable designs and scalable architectures are achieving a dual objective: improving efficiency and delivering exceptional customer experiences.”
Upcoming NRF 2025 Incisiv Speakeasy
Retail executives navigating the challenges of rapid transformation are invited to attend the NRF 2025 Incisiv Speakeasy. Scheduled for Saturday, January 11, 2024, this exclusive panel and dinner, hosted by Incisiv and Toshiba, will offer deeper insights into strategies for retail success.
About Incisiv
Incisiv is a peer-to-peer executive network providing consumer industry leaders with insights and benchmarks to navigate digital disruption. The firm supports its clients with curated learning opportunities and prescriptive transformation strategies. Learn more at incisiv.com.
About Toshiba Global Commerce Solutions
Toshiba Global Commerce Solutions empowers retailers through a dynamic ecosystem of advanced solutions and services, enabling them to adapt to consumer needs and market conditions. By providing visibility and control over operations, Toshiba helps retailers build and scale innovative experiences. For more information, visit commerce.toshiba.com.
Follow Toshiba Global Commerce Solutions on LinkedIn, YouTube, Facebook, Instagram (@toshibacommerce), and X/Twitter (@ToshibaCommerce).
This comprehensive report not only addresses the critical challenges faced by the retail industry but also lays out a roadmap for leveraging technology, operational efficiency, and sustainability to drive future success. As the sector continues to evolve, the focus on innovation and adaptability remains paramount.
