Laggard retailers face missed sales and high costs without data-driven solutions reports Kibo and IHL Group survey.
AUSTIN, Texas, Nov. 20, 2024 /PRNewswire-PRWeb/ -- As holiday peak season rapidly approaches, a newly released report by Kibo Commerce, a market leader in composable commerce solutions, and IHL Group, a global research and advisory firm, warns retailers of potentially significant financial losses tied to gaps in inventory visibility, staffing for fulfillment, and technology alignment. IHL's survey findings underscore that without intelligent, adaptable systems, many retailers have set themselves up for missed sales, unhappy customers, and disrupted operations this season.
IHL and Kibo's latest research reveals concerning trends that could derail holiday success, especially for retailers that are not employing a unified, data-driven tech stack to keep pace with the demands of a fast-moving market. For instance, nearly 70% of surveyed retailers cite staffing as a peak season challenge. Yet, staffing alone won't prevent costly delays in fulfillment if inventory remains invisible or poorly managed across channels. In fact, data from the study indicates that retailers lacking integrated systems for inventory control and real-time data may see customer dissatisfaction and negative reviews climb sharply.
Key findings from the survey include:
- Retailers with outdated legacy order management and inventory systems lacking real-time visibility or disconnected platforms are particularly vulnerable to losing significant revenue this season.
- Without intelligent, data-powered systems, retailers may face profit reductions as high as 134% compared to competitors who leverage AI and machine learning for inventory and fulfillment optimization.
- Well-integrated, AI-powered order management systems (OMS) can make all the difference in avoiding these high risks.
- With AI, inventory forecasting is more accurate, reducing out-of-stock and overstock situations by 60%.
- Nearly half of the study's respondents who adopted AI-driven systems reported growth rates more than 2.5 times higher than those using traditional, manual processes.
The stakes are particularly high for underperforming retailers, termed "Sales Laggards" in the study. These retailers, with flat or negative growth in 2024, struggle more than others with inventory inaccuracy, fulfillment reliability, and the use of real-time data. Sales Laggards are a staggering 22 times more likely to experience costly inventory visibility issues than top performers. Moreover, they are five times more likely to face inventory allocation challenges across store locations — a flaw that could lead to lost sales as customers increasingly expect quick, accurate fulfillment.
Meagan White, Kibo's chief marketing officer, noted the serious implications for retailers who ignore these insights. "The lack of real-time inventory visibility can be detrimental for any retailer this season. We're seeing that retailers who rely on outdated systems are at much higher risk of losing customers, facing order delays, and shouldering additional costs that eat into their margins," White commented. "There is a clear divide between Sales Winners and Sales Laggards, and that difference is largely defined by who has the tech to manage demand spikes and who doesn't."
The Kibo and IHL Group Survey included responses from 300 retailers across various segments in the retail industry, with participants representing sectors such as grocery, drug/cosmetics, apparel, electronics, and home goods. Retailers shared insights into their technology adoption, inventory management practices, and fulfillment strategies, with a focus on preparing for peak shopping periods. Quantitative responses were collected via online questionnaires, and additional qualitative insights were gathered through in-depth interviews with supply chain managers and IT leaders.
Download your copy of the Intelligent Commerce: Integrating AI, Analytics, and Unified Systems Survey at https://kibocommerce.com/resource-center/ihl-kibo-intelligent-commerce-survey/.
About Kibo
Kibo Commerce is a composable commerce platform for retailers, manufacturers, distributors, and wholesalers who want to simplify the complexity in their businesses and deliver modern customer experiences. Kibo is the only modular commerce platform supporting experiences that span Order Management, eCommerce, and Subscriptions. Companies like Zwilling, Ace Hardware, Boscov's, Nivel, and REEDS Jewelers trust Kibo to bring simplicity and sophistication to commerce operations and exceed customer expectations. To learn more, visit https://kibocommerce.com/
About IHL
IHL Group is a global research and advisory firm specializing in technologies for the retail and hospitality industries. The company, based in Franklin, Tenn., generates timely data reports, offers advisory services and serves as the leading retail technology spokesperson for industry and vendor events.
Media Contact
David Libby, Kibo, 1 415-518-6611, [email protected]
SOURCE Kibo
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