Optimizing Retail Store Operations for Today's Shopper: Associate Enablement, Inventory Management, Order Fulfillment, Self Service, Loss Prevention

Inside this Report

Retail stores are being asked to do more with less when it comes to sales, fulfillment, service, and an evolving shopper journey that increasingly includes self-service, while dealing with margin pressure, labor constraints, and a higher risk of shrink. Retailers are investing over the next 12 months in a few clear goals. One is closing gaps in inventory visibility and omnichannel execution. Another is modernizing checkout and shopper self-service without weakening loss prevention. A third is improving frontline productivity, training, and engagement. Across these areas, retailers are deploying a mix of technologies to reduce labor and improve execution. This includes AI, along with RFID and computer vision, where it is delivering measurable results.

What Questions are Addressed?

• What store execution priorities (inventory accuracy, labor productivity, checkout experience, shrink control) are driving investment over the next 12 months, and how are macro headwinds shaping them?
• How are retailers improving inventory visibility and omnichannel fulfillment, and where do RFID, computer vision, OCR, and workflow integration fit into the operations?
• In what ways are retailers modernizing checkouts, and how are they balancing speed, reliability, shopper experience, and loss prevention?
• How is the shopper journey evolving toward self-service (i.e., self-checkout, scan-and-go, smart carts), and how is this being scaled?
• How are retailers enabling the frontline workforce (communications, training, and engagement), and what is reducing friction and improving adoption?
• How do device specifications (including NPU adoption), connectivity, and integrations influence time-to-value and ROI for AI-enabled store workflows?

Who Should Read this Report?

This report should be read by retail IT and operations leaders and supporting solution providers, including:

• Retail CIO/CTO and IT leadership
• Store operations, field operations, and execution leaders
• Omnichannel, e-commerce fulfillment, and inventory management leaders
• Loss prevention, fraud, and asset protection leaders
• Frontline workforce enablement and employee experience stakeholders
• Retail technology vendors and systems integrators

Organizations Listed in this Report

• Able Systems
• Amazon
• Apple
• Aptos
• Avery Dennison
• Beijing Silion
• Bixolon
• Blue Bamboo Systems
• Bluebird Corp
• Brother
• CAEN RFID
• Caper Carts
• Chainway
• Cipherlab
• Citizen Systems
• Datalogic
• Dell
• Denso Wave
• DRS Tactical Systems
• DT Research
• Durabook
• Epson
• FEIG
• Focal Systems
• Fujitsu
• Getac
• Google
• Honeywell
• HP
• iData
• INVENGO/TAGSY S
• IPC
• Kyocera
• Legion
• Lenovo
• M3 Mobile
• Meferi
• Metric
• Microsoft
• Mildef
• Mobile Demand
• Motorola Solutions
• Newland AIDC
• Nordic ID (Brady)
• Panasonic
• Point Mobile Co.
• Printek
• ProGlove
• Quail Digital
• RodinBell
• RuggON
• SATO
• Samsung
• Scandit
• SEUIC
• SII
• Sonim
• Star Micronics
• Supoin
• Theatro
• Thing Magic/Jadak
• Toshiba TEC
• TSC
• UKG
• Unitech
• Urovo
• VoCoVo
• Winmate
• Woosim Systems
• WorkJam
• Zebra

Executive Summary

Retailers are redefining the role of the store. Beyond traditional selling, stores are expected to function as fulfillment nodes, service hubs, and brand experience environments while supporting a shopper journey that includes more self-service as customer preferences evolve as well. This shift raises expectations for store execution at a time when retailers face margin pressure, ongoing labor constraints around recruiting, retention, scheduling, and engagement, and elevated shrink and organized retail crime risk. As a result, retailers are prioritizing initiatives that deliver outcomes quickly and reduce complexity for store teams.

Inventory accuracy and on-shelf availability are fundamental to store performance and omnichannel fulfillment. Retailers continue to invest in approaches that improve visibility and execution, including RFID and computer vision to reduce out-of-stocks and overstocks and improve pick and replenishment. Checkout modernization is also advancing, but self-service is often weighed against reliability and shrink risk, which makes clear the need to align the shopper experience and loss prevention strategies in order to achieve scale.

AI is increasingly being adopted as an enabler, and it is most valuable when it converts operational signals into prioritized actions, real-time guidance, or aids decision-making for associates and managers. At the same time, AI does not solve store execution on its own, and its integration often depends on device reliability, connectivity, and legacy systems integration, along with a streamlined associate experience.

Here, "AI" refers to capabilities that help make store operations more reliable and less labor-intensive. This includes operational AI (analytics for forecasting and optimization), workflow AI (turning signals into prioritized tasks), device AI (on-device computer vision and OCR to speed data capture), and generative AI (search, summarization, and real-time guidance for associates).

Key Findings

• Stores are being redefined, raising execution expectations. Retail locations are increasingly expected to support sales, fulfillment, service, and experience, while self-service becomes a larger part of the shopper experience. This is expanding the scope and complexity of store execution, and the associate remains central to making it work.
• Margin pressure and labor constraints are the strongest headwinds. Retailers are prioritizing solutions with clear ROI with a fast time-to-value and are avoiding initiatives that add operational complexity without also in turn reducing labor or improving execution.
• The global retail device market is already sizable, generating about $3.4B from just over 7M devices in 2024 and projected to reach roughly $4.0B and 8.6M devices by 2029. This reflects low single digit annual growth as retailers refresh older hardware and expand device deployments across more stores, roles, and workflows.
• Store technology fleets are fragmented and reliability is critical. Smartphones, tablets, and handheld mobile computers are deployed with scanners and a myriad of additional apps. Retailers are increasingly prioritizing ease-of-use, battery life, and ruggedness to increase uptime.
• Simplification is now a frontline adoption requirement. App bloat, multiple logins, and device fragmentation cause frustration and reduce consistent usage. Retailers are looking to consolidate workflows and improve communication, where hands-free, wearable/voice-enabled approaches can reduce friction and keep associates on customer-facing activities.
• Inventory accuracy and customer experience remain top operational priorities. Retailers continue to focus on improving inventory management/accuracy and customer engagement, reinforcing that inventory accuracy underpins most store KPIs and performance outcomes.
• Omnichannel fulfillment gaps are because of visibility and execution more than automation. Even when systems show positive on-hand inventory, associates and pickers often struggle to locate items quickly, leading to missed picks, substitutions, and customer dissatisfaction.
• Retailers are pursuing multi-technology strategies. Workflow integration, RFID, computer vision, OCR, and AI-based forecasting/analytics are being combined to improve inventory visibility and demand alignment and to reduce out-of-stocks and overstocks.
• Checkout modernization continues, but self-service expansion is constrained by reliability and shrink risk. Retailers will scale self-checkout, scan-and-go, and smart carts only when they can maintain acceptable loss levels while preserving a positive experience for honest shoppers.
• Loss prevention programs are increasingly shaped by fragmentation and organized retail crime. Retailers are looking for workflows that narrow the when/where of suspicious activity, reduce investigative labor, and improve real-time visibility across systems.
• The store device base is becoming more AI-ready, and adoption is accelerating through refresh cycles. Over half of respondents report already deploying NPU-capable mobile devices, and another third plan adoption in the next upgrade cycles, supporting a near-term shift toward more practical on-device computer vision/OCR and improved resilience for store workflows.
• Retail media networks and personal shopping platforms are extending into in-store touchpoints. In-store signage and smart carts represent growing areas of interest, but success depends on operational discipline, execution consistency, content accuracy, and measurement.