Study Affirms Growing Use of Digital Tools to Solve Labor Challenges
Labor challenges have marked much of the 2020s. At the official mid-point of the decade, a new study shows that technology can help crack some of the biggest problems.
According to the “2025 Connected Retail Experience Study: Mobility is Driving Associate Productivity” released by Incisiv and conducted in collaboration with Verizon Business and Cisco, 89% of grocery executives report that they are prioritizing tech investments that improve associate productivity. The report highlights tools such as inventory apps, push-to-talk communication and associate Wi-Fi that provide team members with real-time data and tools and help boost productivity and engagement.
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Currently, 24% of retailers use mobile inventory apps, a number that is expected to climb to 36% in 2026. Meanwhile, 31% of respondents say they plan to use video-based training by 2026, compared to 26% at the current time. Incisiv’s study also reveals that the use of robotics may be in the early stage but poses major opportunities to alleviate labor challenges by automating processes, bridging operational gaps and optimizing workflows.
Tech can help with employee recruitment and retention among younger generations. The study found that retailers are behind specialty retailers in addressing the needs of Gen Z and Millennial associates who expect higher-tech intuitive tools. “Many retailers still rely on outdated legacy systems with clunky interfaces that fail to meet the usability standards younger, tech-savvy associates demand. This poor user experience not only frustrates associates but also impacts their productivity and engagement,” the analysts concluded.
"Retail is at a turning point," declared Gaurav Pant, chief insights officer at Incisiv. "The focus on convenience, driven by labor challenges and changing consumer expectations, is fundamentally reshaping how retailers approach technology investment and customer experience."
The study identified three other significant changes that are affecting retail, including the role of mobile technology in retailer success, the opportunity of personalization at scale and the deployment of AI for high-value use cases. For instance, the research showed that 42% of retailers plan to implement mobile apps with in-store features by 2026, up from the current 19%. As for personalization at scale, only 13% of respondents said they are satisfied with their current personalization strategies. On the AI front, more grocers are focusing on high-value applications for AI that demonstrate a clear return on investment.
