IDC FutureScape: Worldwide Retail 2025 Predictions

IDC FutureScape Figure

• Figure: IDC FutureScape: Worldwide Retail 2025 Top 10 Predictions

Executive Summary

IDC FutureScape Predictions

• Summary of External Drivers

• Predictions: Impact on Technology Buyers

• Prediction 1: By 2026, 90% of Retail Tools Will Embed AI Algorithms, with Over 30% of These Algorithms Using Standalone AI or Modular, Agnostic AI Models That Can Be Swapped Out for Suitable Retail-Specific Models

• Associated Drivers

• IT Impact

• Guidance

• Prediction 2: By 2028, 30% of Retailers Will Drive 10% IT Costs Out of Stores by Utilizing Distributed Edge with Onboard AI Chips, Reducing Latency and Improving IT Operations Performance

• Associated Drivers

• IT Impact

• Guidance

• Prediction 3: By 2026, 70% of Retailers Will Implement AI-Driven Loyalty Apps, Improving Contextualized Offers by 40% and Boosting Customer Engagement to Drive Up to a 25% Increase in Customer Retention Rates

• Associated Drivers

• IT Impact

• Guidance

• Prediction 4: By 2028, Secondary Inventory Management Benefits Realized from Technology Adopted to Be Compliant with Regulations Will Spur a 30% Increase in Supply Chain Adoption of Track and Trace Capabilities

• Associated Drivers

• IT Impact

• Guidance

• Prediction 5: By 2025, Major Retailers Will Boost IT Spending by 10%+ to Enhance Cybersecurity to Better Battle the Rising Tide of New, More Sophisticated Data Breaches and Other Cyberthreats Retailers Now Face

• Associated Drivers

• IT Impact

• Guidance

• Prediction 6: By 2027, 40% of Retailers Will Leverage GenAI-Enabled Content Creation and Delivery for Dynamic Product Content, Boosting Conversion Rates and Cutting Content Management Costs by 30%

• Associated Drivers

• IT Impact

• Guidance

• Prediction 7: By 2026, 50% of Retailers Will Have Reduced Workforce Costs by 2% with Embedded GenAI in Fundamental Business Processes and Tasks Across Business Operations at Corporate and in Stores

• Associated Drivers

• IT Impact

• Guidance

• Prediction 8: By 2027, Over 45% of Major Retailers Will Apply Hyper-Localization for Store-Specific Assortment Planning, Selection, Allocation, and Replenishment That Leverages AI and Data-Driven Decision-Making

• Associated Drivers

• IT Impact

• Guidance

• Prediction 9: By 2029, Grocery Retailers Will Harness Quality Data at Scale from Interoperable Unified Supply Networks for AI-Based Decision Intelligence to See a 6% Increase in Profits and 18% Reduction in Waste

• Associated Drivers

• IT Impact

• Guidance

• Prediction 10: By 2026, 70% of Major Retailers Will Invest in Loss Prevention Tech Applying AI to Integrated Data Sets with Multiple Sources (RFID, Camera, Traffic, and Inventory Data) to Reduce In-Store Theft by 25%

• Associated Drivers

• IT Impact

• Guidance

Advice for Technology Buyers

External Drivers: Detail

• AI-Driven Business Models — Moving from AI Experimentation to Monetization

• The Drive to Automate — Toward a Data-Driven Future

• Battling Against Technical Debt — Overcoming Hurdles to IT Modernization

• Regulatory Flux — Navigating Compliance Challenges in a Shifting Policy Landscape

• Expanding Digital Security Frontiers — Fortification Against Multiplying Threats

• Customer Experience Squared — Consumer and Citizen Expectations for Digital Services

• AI-Driven Workplace Transformation — Building Tomorrow's Workforce Today

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• Related Research