Budget constraints are the primary obstacle to retail optimization for 59% of Polish retailers, according to the latest Retail Barometer by Future Mind. Resistance to change was also cited as a challenge by 32% of respondents. Despite these hurdles, 41% of industry experts believe 2025 will be a more favorable year for the retail sector, the report revealed. According to the report, 32% of retail experts identified assortment, pricing, and promotions as the most promising areas for improving business processes. Many companies are focusing on optimization strategies to counter rising operational costs. Among these, 41% of respondents emphasized supplier negotiations, while another 41% pointed to personnel management as critical to reducing expenses. Investment in inventory and warehouse management has yielded the highest returns on past optimization efforts. In 2025, more retailers are expected to adopt advanced technologies, such as AI-based inventory forecasting, automated replenishment systems, and electronic shelf labels (ESLs). “Technological solutions are crucial for process optimization and boosting sales,” said Emil Waszkowski, head of strategy at Future Mind. He highlighted tools like planogram verifiers, which use image recognition to ensure proper product placement, and ESLs, which enable real-time price adjustments to enhance efficiency and margins. Waszkowski also pointed to innovative testing by major retailers like Lidl, which is experimenting with “Scan and Go” technology in select stores. If successful, this approach could significantly reduce labor costs and be adopted by other large retail chains. The report notes that resource planning systems (ERP) are the most widely used technology among large retailers (64%), followed by customer relationship management (CRM) and warehouse management systems (WMS) at 57%. Retailers are also increasingly deploying supply chain visibility platforms, big data analytics systems, and mobile applications for employees. Despite the growing interest in advanced technologies like IoT, RFiD, and AI, only 6% of retailers have implemented AI for process automation. This gap is largely attributed to budget constraints, cited as the top barrier to optimization initiatives. In response, many companies are prioritizing investments in cloud technology and data analytics, with over one-third planning to increase or maintain spending in these areas. Retailers are also leveraging digital tools to mitigate rising operational costs, with twice as many companies planning to adopt in-store technologies in 2025 compared to the previous year. Despite the challenging economic environment, the report notes a sense of cautious optimism in the retail sector. Experts emphasize that the success of optimization efforts hinges not only on technology adoption but also on a shift in process management strategies. “With the rapidly changing economic conditions, targeted actions to improve efficiency will be critical for the success of Polish retail,” the report concludes. The Retail Barometer was based on a survey conducted among 34 industry experts and decision-makers in the retail sector using the CAWI method. The project was developed in collaboration with the editorial team of Wiadomości Handlowe. Source: Future Mind and ISBnews