Study Shows Growing Use of Digital Tools for Labor Challenges

A collaborative report by Incisiv, Verizon Business, and Cisco—the “2025 Connected Retail Experience Study: Mobility is Driving Associate Productivity”—underscores the critical role of technology in addressing digital tools labor challenges and enhancing grocery operations. At the halfway mark of the 2020s, grocers are turning to innovative solutions to improve productivity and employee engagement.

Key Findings

1. Tech Investments to Boost Productivity

• 89% of grocery executives prioritize technologies that improve associate productivity, such as:
  • Mobile inventory apps: Usage expected to grow from 24% in 2023 to 36% by 2026.
  • Push-to-talk communication and Wi-Fi: Enabling real-time data sharing and operational efficiency.
  • Video-based training: Adoption projected to increase from 26% to 31% by 2026.

2. Robotics and Automation Opportunities

• While still in early stages, robotics show potential to:
  • Automate processes and repetitive tasks.
  • Bridge operational gaps and optimize workflows.

3. Tech-Savvy Tools for Younger Employees

• Gen Z and Millennial associates expect modern, intuitive systems, but many retailers rely on outdated legacy systems.
• Poor user experiences hinder productivity and associate satisfaction, emphasizing the need for high-tech solutions to attract and retain talent.

Emerging Trends Impacting Retail

A. Mobile Technology Driving Success

• 42% of retailers plan to implement mobile apps with in-store features by 2026, up from 19% today.

B. Personalization at Scale

• Only 13% of retailers are satisfied with their current personalization strategies, indicating room for improvement in delivering tailored experiences.

C. AI for High-Value Applications

• Retailers are focusing on AI-driven solutions that demonstrate clear ROI, such as demand forecasting and customer experience enhancements.

Insights from Industry Leaders

Gaurav Pant, Chief Insights Officer at Incisiv, remarked:

“Retail is at a turning point. Labor challenges and changing consumer expectations are fundamentally reshaping how retailers approach technology investment and customer experience.”

Implications for the Grocery Industry

This report highlights how technology is becoming a pivotal solution to labor challenges. By prioritizing innovation in mobility, personalization, and AI, grocers can improve employee satisfaction, optimize workflows, and enhance customer experiences.

Future Outlook

With the growing reliance on digital tools labor, the grocery sector is set to transform into a more connected and efficient ecosystem by 2026, positioning itself to meet the demands of modern shoppers and employees alike.
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