The Tally robot can autonomously navigate stores and scan shelves to track inventory. | Source: Simbe Robotics
Simbe Robotics Inc. and Coresight Research yesterday released the “State of In-Store Retailing 2025” report. The companies said the report highlights the retail industry’s urgent need to digitize stores using artificial intelligence and automation.
According to the report, retailers are currently losing $162.7 billion in margin each year due to in-store inefficiencies—a 27% increase from 2024—and pressure is rising.
“Industry leaders are no longer asking if stores will become intelligent—but when,” said Brad Bogolea, co-founder and CEO of Simbe. “Retailers need a real-time view of what products are on shelves, where they are, and whether they’re priced correctly. We built Simbe to help retail teams answer those questions—automatically, at scale, and without guesswork.”
Report focuses on retail inefficiencies
Simbe said the report spotlights current challenges for retailers. First, they’re losing 5.5% of gross sales to in-store inefficiencies—up from 4.5% in 2024. This represents a $162.7 billion opportunity across key U.S. sectors, including grocery, mass merchandise, drugstore, DIY, and warehouse clubs, the report claimed.
Retailers are facing mounting margin pressure, according to Simbe. Eighty-one percent of retailers report losing at least 5% of operating margin due to in-store inefficiencies, up from 75% last year, the report said.
Labor challenges continue to exacerbate these inefficiencies. The report found that shrinkage (42%), manual tasks (39%), and employee turnover are the biggest contributors to store inefficiencies.
Meanwhile, execution gaps are widening. The study found that promotion execution errors are now the top operational challenge at 39%, followed by product pricing errors at 37%, and misplaced or missing items on shelves at 37%.
Retailers are adopting more technology, but it’s still underutilized in the sector. Sixty-six percent of retailers have begun implementing store intelligence technologies, but only 20% have fully scaled them—leaving a significant opportunity for early movers.
They’re also investing more into automation. The report showed that planned investment in store intelligence technologies is up 151% year-over-year. Shelf-digitization technologies, including robotics, saw the largest jump in adoption, with a 16-point increase.
“The next 12 to 18 months will determine who leads retail’s next era,” said Deborah Weinswig, founder and CEO of Coresight Research. “Retailers that fail to adopt holistic store intelligence strategies risk falling into a permanent margin disadvantage as automation reshapes in-store execution.”
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Simbe continues East Coast expansion
Retailers using Simbe’s Store Intelligence platform have already realized the benefits of automation. For example, ShopRite used Simbe’s autonomous Tally robot to cut out-of-stocks by 50% in one of its highest-volume stores. Other customers have report more than 98% on-shelf availability and over 90% improvements in pricing accuracy.
Earlier this month, Simbe announced a strategic partnership with DeCicco & Sons, a family-owned grocery chain in New York State. The partners will bring Simbe’s Store Intelligence platform to DeCicco’s flagship Sleepy Hollow location and additional stores in Eastchester and Larchmont.
DeCicco & Son has integrated Simbe’s platform with digital shelf displays from Aperion, contactless checkout, and mobile integrations. These technologies “create a seamless, modern retail environment that boosts product availability, pricing accuracy, and service quality while reducing manual effort,” the partners asserted.
The company said its partnership with DeCicco marks a step forward in its East Coast expansion and “reinforces the company’s role as the infrastructure powering modern retail.”
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