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9 in 10 retailers say they’re personalizing, but only 14% do it in real time
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3 in 4 can’t prove ROI from their digital investments
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1 in 3 admit their AI initiatives are stuck in testing cycles
The world’s major retailers have an urgent decision to make. Valtech’s new global research finds the industry running out of time to turn investment into impact, with just a few years left for retailers to reposition before their competitive windows close.
Despite years of spending on AI, data platforms and omnichannel tools, most retailers remain stuck in pilot purgatory. Their innovation portfolios are full but fragmented. The result is an industry in motion but not progressing.
“Every retailer is investing. Very few are transforming,” says Emilie Robert, Global Vertical Lead, Retail at Valtech. “The next year will determine who owns the customer relationship and who fades into irrelevance. The winners will work at the intersection of strategy and execution, intelligence and emotion, technology and humanity.”
Shoppers are done pretending generic equals personal
Almost every retailer claims to personalize their customer experiences, but only 14% can do so across channels in real time. Most still rely on recycled loyalty programs and email promotions disguised as personalization. Measurement is equally weak: 75% of retailers can’t prove ROI, and only a quarter track repeat purchases or churn.
This disconnect is eroding customer trust. Forty-one percent of consumers say they’ve switched brands because of poor personalization.
“Customers know when experiences are built on understanding versus automation,” says Gabriel Laliberte, EVP of Strategy, Valtech Americas. “Right now, most retailers are optimizing messages, not moments.”
AI adoption’s up, but it’s going nowhere
Eighty-six percent of retailers have implemented or piloted AI, but just 39% have scaled it across operations. The majority use it for marginal tasks — chatbots, recommendations, campaign optimization — rather than revenue levers like inventory, pricing or service orchestration.
Top barriers include lack of expertise (36%), poor data quality (33%) and disconnected systems (31%). Retailers are spending heavily on tools but failing to integrate intelligence where it matters most.
“AI is the operating system of modern retail,” says Pascal Malotti, Global Retail Strategy Lead at Valtech. “But unless it touches demand, pricing or fulfillment, it’s just automation with a new name.”
Retailers need help harmonizing all their transformations
Ninety-nine percent of retailers rely on external partners, yet many still operate in silos that prevent them from delivering unified experiences. While 46% claim to provide omnichannel journeys, almost all (96%) face major execution barriers, from mismatched customer identities to disconnected inventory systems.
Every missed handoff between store, web and app represents lost revenue.
Valtech’s analysis shows that retailers who can link their data, platforms and human experience into one continuous system outperform those who simply accumulate tools.
Irrelevance looms for retailers that cannot orchestrate their tech
The research shows 37% of retailers have achieved measurable transformation benefits today, and another 36% expect to get there within two years. Beyond that horizon, competitive repositioning becomes far harder as early movers lock in data, loyalty and operational advantages.
“The next few years are decisive,” says Matt Hildon, European Retail Director at Valtech. “Retailers who continue to plan transformation instead of living it will find themselves priced out, timed out and tuned out.”
About the research
The Retail at the Crossroads report, conducted by Vanson Bourne and commissioned by Valtech in August 2025, surveyed 700 retail decision-makers across North America, Europe, LATAM, Asia and MENA. Respondents represent C-suites and senior managers involved in digital transformation at organizations with over $500 million in annual revenue.
About Valtech
Valtech, the global leader in experience innovation, exists to unlock a better way to experience the world. By delivering sustainable, human-centric digital solutions that prepare businesses for the future, we empower brands to leapfrog the competition and surpass best practices. Our 7,000-strong team in 24 countries crafts intelligent, personalized experiences that blend crafts, categories and cultures. At the intersection of data, AI, creativity and technology, we touch lives, grow businesses and unlock value in a digitally accelerated world. Our clients include the world’s leading brands, such as AXA, Dolby, L’Oréal, LVMH, Mars, Mercedes, P&G, Santander, Toyota and Volkswagen. See our work at Valtech.com.
Media contact:
Red Lorry Yellow Lorry on behalf of Valtech
valtechglobal@rlyl.com