Across the retail industry, 2025 is shaping up to be a pivotal year for tech investment. According to a study by IHL Group, commissioned by Epicor, small and medium-sized retailers are doubling down on technology to streamline operations, enhance customer experiences, and stay competitive amid changing markets.
Key Takeaways of the Report
- POS System Refresh Tops the List: Eighty percent of retailers are prioritizing upgrades to their point-of-sale systems. Modern POS platforms now integrate with inventory and CRM tools, enabling faster transactions and smarter decision-making.
- Inventory Visibility is Critical: Sixty-five percent of retailers are investing in real-time inventory management to meet customer demand and reduce stockouts.
- AI is Gaining Ground: AI-related spending is on the rise, with 15% of IT budgets now allocated to AI initiatives; this figure is up from 0% just two years ago. However, obstacles still exist: Data inconsistencies and staff hesitation are just two challenges reflected in the results.
- Personalization and CRM Upgrades: Nearly half of retailers are focusing on personalizing the customer experience and enhancing loyalty programs through better CRM systems.
- Security and Payments: With the rise of contactless and mobile payments, 53% of retailers are updating payment terminals to improve security and convenience.
What Sets Leaders Apart?
Retailers seeing the most growth are significantly more likely to take steps to enhance customer service:
- Embedding generative AI into existing applications
- Improving store communications
- Upgrading payment terminals and CRM systems
The Bottom Line
Retailers who embrace integrated, AI-powered technologies are positioning themselves to thrive in 2025 and beyond. Whether it’s streamlining checkout, optimizing inventory, or personalizing customer interactions, tech-savvy retailers are setting the pace for the future of commerce.
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