Technology may be creating more inefficiencies than it prevents, according to a new report from research and advisory firm Coresight Research, in partnership with Simbe, a retail shelf digitization company, and RELEX Solutions, a retail and supply chain planning platform. The company’s annual “The State of In-Store Retailing 2026” study reveals operational inefficiencies continue to rise, costing retailers 6.4 percent of gross sales annually. That figure is up from 5.5 percent in 2025 and 4.5 percent in 2024, totaling $196.4 billion across key U.S. retail sectors.
The report noted that unoptimized technology sequencing is creating a gap between technology investment and return on investment. Store technology adoption is nearly universal. According to the report, 97 percent of retailers have deployed or plan to deploy store intelligence technology within the next year. Yet inefficiencies now cost retailers a growing share of gross sales. The research shows technology sequencing—not investment alone—is what separates value creation from value erosion.
“Store technology decisions this year will shape competitive positions for decades,” said Deborah Weinswig, CEO and founder of Coresight Research. “Our data shows that prioritization determines return. Retailers that deploy shelf digitization technology first build a compounding competitive advantage that is difficult to replicate.”
The report found 60 percent of retailers have already scaled or are actively scaling store intelligence technologies, up 18 percent year over year. Only 33 percent of retailers are investing in shelf digitization. Many prioritize pricing and supplier systems over shelf digitization, despite those systems relying on shelf-level data to perform effectively. The report noted that failing to establish a shelf digitization foundation limits returns.
Meanwhile, 86 percent of retailers reported reduced time spent on manual tasks since introducing store intelligence technology, with an average 14 percent decrease redirected toward higher-value work such as merchandising and product expertise, helping enhance the customer experience.
“A digitized shelf is the foundation that every retail system depends on,” said Caitlin Allen, senior vice president of market at Simbe. “Leading retailers have modernized operating models with data that flows seamlessly across store operations, supply chain and digital channels. This shift improves execution across the store while enabling teams to focus on higher-value work for the customer.”
