2025: A pivotal year for technology investment in retail

IGD's Retail Futures team explore trends and innovations shaping the global food industry – today and beyond. In this article, Senior Partner Toby Pickard discusses how this year has seen significant investments in in-store technology.

As we look back on 2025, it is undeniable it represents a decisive turning point for technological innovations in stores.

After years of cautious pilot programmes and small-scale experiments, retailers are now embracing technology investments at scale. This shift is largely driven by increasing labour costs, ongoing issues with shrink, volatility in supply chains, and customers’ growing expectations for faster, more convenient shopping experiences.

Four technologies in particular have become central to investment strategies across markets this year: electronic shelf edge labels (ESLs); in-store digital displays; smart carts and checkout solutions; and in-store computer vision systems.

Widespread adoption of digital media

One of the most visible signs of this tech transformation is the rapid implementation of electronic shelf-edge labels. Although ESLs have been available for decades, 2025 marks the first time retailers in many markets have moved beyond limited trials to widespread usage.

This shift reflects a growing emphasis on agility, efficiency, and shopper experience.

The benefits of ESLs include:

• Ensuring pricing accuracy.

• Enhancing shopper communication, from product recommendations to allergen information.

• More efficient stock-replenishment workflows, especially when integrated with shelf-edge cameras and store data systems.

At the same time, retailers are using digital screens in aisles or store entrances to highlight promotions, improve product visibility, and enhance the overall retail-media experience for shoppers, while driving revenue.

Smart carts and improved self-checkout solutions

Smart carts have also seen increased adoption in 2025, as retailers seek to enhance customer experience and reduce front-end labour demands.

These carts can be equipped with scales, cameras, and built-in screens, allowing shoppers to scan as they shop, receive personalised product recommendations, and bypass traditional checkout lines.

Their rollout has been accelerated by advances in hardware and AI, which now offer more accurate product recognition and require significantly less operational oversight than previous models.

For retailers, smart carts serve as more than just a convenience feature: they generate valuable behavioural data, enable targeted in-aisle marketing, and help shift labour resources from checkout duties.

Retailers are investing heavily in next-generation self-checkout technologies that aim to be faster, more accurate, and more seamless.

Computer vision systems

Shelf-scanning cameras - whether ceiling-mounted, carried by robots, or integrated into smart shelves – have become much more prevalent. Their ability to provide near-real-time visibility of on-shelf inventory, pricing and planogram compliance they are helping stores become smarter.

This capability is crucial for addressing challenges like phantom inventory, high out-of-stock rates, and labour-intensive manual inventory checks.

Simultaneously, AI-powered loss prevention systems are gaining traction for their ability to analyse customer behaviour and detect suspicious activity in real time.

With theft being a significant issue for many retailers, the return on investment for these systems is becoming increasingly evident, positioning computer vision as both a defensive strategy and a tool for operational optimisation.

Institutionalising innovation for the future

These technological advancements signify a broader shift in 2025: retailers are moving beyond mere experimentation and are embedding innovation into their operational frameworks.

Technology is increasingly integral to every aspect of store management, from pricing and customer flow to inventory control.

The investment trends we observed this year indicate a lasting transformation, where digitalised stores, data-driven decision-making, and automation are set to become standard practice rather than the exception.

Looking to 2026

As the tech evolution continues at pace, retailers and suppliers must ensure they are aware of all the possible solutions available to empower store associates, improve operations, and enhance the shopping experience. Any who don’t will be left behind.