Shelf intelligence has become an imperative for retailers investing in technologies that drive inventory accuracy, profitability and customer satisfaction, according to a report from smart data capture specialist Scandit and research company IHL.

The research spanned more than 400 retailers across grocery, mass merchants, warehouses, drug stores and convenience stores in the USA, Europe, Middle East and Africa.

Inventory issues including out-of-stocks, overstocks and misplaced items remain a critical difficulty for retailers, equating to $1.73tn in lost sales annually, hitting retailer profitability. Consequently, inventory visibility ranks second as a technology investment priority behind personalisation of the customer experience, according to the research. However, retailers with profit growth of over 10% are investing 208% more in inventory visibility than profit laggards.

As the appetite for shelf intelligence deployment rises, retailers expect multiple benefits, including increased customer satisfaction (57%), reduced labour costs (55%), on-shelf availability lifts (49%) and higher shop staff productivity (38%).

The research highlights the maturity shift from early shelf intelligence deployments, which struggled with integration, high costs and immature AI models. AI spending by retailers is projected to grow 29% from 2025 to 2026. More retailers are now identifying as early adopters, with retail’s profit winners 94% more likely to invest in shelf intelligence than their struggling peers. Early adopters are recognising a willingness to embrace operational transformation rather than settle for incremental improvements.

“While digital transformation has dominated the retail industry for the last decade, inventory accuracy and shelf availability continue to erode profitability,” said Greg Buzek, president at IHL Group. “Our new research demonstrates that shelf intelligence technology has matured to a competitive necessity, and retailers who have embraced this shift are breaking away from the pack.”

When deploying shelf intelligence, retailers who have adopted a hybrid data capture strategy – using multiple methods, such as autonomous robots, fixed cameras and mobile devices – are 64% more likely to be early adopters. These same retailers are also 136% more likely to maintain profitability leadership.

Over the course of the next 12 months, 36% plan to adopt a hybrid data capture strategy demonstrating allocated budgets and implementation timelines, the single highest among planned shelf technologies. A further 21% are planning within the next 24 months, highlighting a market with momentum.

“Grocers and other retailers are no longer asking whether shelf intelligence works, they’re asking how fast they can scale it,” said Christian Floerkemeier, CTO at Scandit. “The data confirm what we are seeing in real-world engagements across North America and Europe where deployments are increasing, on-shelf availability rises of 5% are being realised and bottom lines are being positively impacted, underlining the overall strategic imperative.”

Swiss firm Scandit (scandit.com) specialises in smart data capture, providing actionable insights and automating end-to-end processes. Its platform enables smart devices, such as smartphones, handheld computers, drones, digital eyewear, robots and fixed cameras, to interact with physical items by capturing data from barcodes, text, IDs and objects.

IHL Group (www.ihlservices.com) is a research and advisory firm specialising in technologies for the retail and hospitality industries. The company is based in Franklin, Tennessee.

For more on the research, go to www.scandit.com/resources/reports/ihl-shelf-intelligence-report/.