A recent study by RSR, in collaboration with retail technology provider Jumpmind, reveals that fashion, apparel, and specialty stores are at the forefront of technology adoption in the retail sector. However, 62% of these retailers acknowledge a growing disconnect between customer expectations for modern store experiences and their ability to deliver them. Retail technology adoption trends show that while innovation is advancing, gaps in implementation remain a significant challenge.
While 85% of retailers still view physical stores as their main growth channel, 65% admit their current technology infrastructure falls short in enabling the desired customer experience. The research, conducted between December 2024 and January 2025, surveyed retail executives and store managers to assess challenges, opportunities, and technological priorities in meeting customer demands.
Point of Sale (POS) systems emerged as a major challenge for retailers. The study highlights that retailers increasingly rely on POS as the backbone of innovative in-store experiences, yet many struggle with its functionality. Only 47% of respondents reported that their POS system supports innovative or unique shopping experiences, while one-third said their systems actively hinder progress. Additionally, less than half of the respondents expressed satisfaction with their POS systems’ capabilities, such as seamless checkout, issuing digital receipts, supporting ‘endless aisle’ orders, integrating loyalty programs, and managing returns effectively.
A significant portion of retailers (34%) cited the rapid pace of consumer adoption of new technologies as a challenge they are unable to keep up with, while 31% pointed to the prohibitive costs of adopting new tech. Over half (54%) noted that the frequent evolution of technology serves as a key barrier to improving store operations.
Despite these challenges, many retailers remain optimistic about mobile-driven solutions. Around 63% view mobile devices for store associates—designed to save managers’ time and enhance operational visibility—as high value. Furthermore, 70% plan to invest in assisted selling and endless aisle capabilities within the next 12 to 18 months, signaling a strong commitment to tech-driven transformation.
Retail technology adoption trends underscore the need for retailers to upgrade their systems to meet rising customer expectations. Tech adoption in retail has become critical as stores face increasing competition from online and direct-to-consumer players. According to the study, 41% believe online competitors are eroding the relevance of physical stores, while 38% view direct-to-consumer models as a threat, and 28% are concerned about the impact of same-day shipping in e-commerce. Additionally, 36% identify hyper-informed and more demanding consumers as a top challenge, with 35% admitting they cannot consistently meet customer expectations.
“Many retailers have yet to crack the code on creating relevant and inspired in-store shopping experiences and time is running out,” said Joe Corbin, Jumpmind president and CEO. “As inflation continues to impact consumer spending, it’s absolutely critical for retailers to create compelling and seamless in-store experiences that deliver value and differentiation and empower both associates and shoppers.”
Steve Rowen, managing partner at RSR, added: “While the past two decades have brought enormous technological potential to retail, the store of the future remains an elusive vision for many. Fortunately, low-cost, fully featured, consumer-grade technology is now available for far less capital investment than older store systems. Retailers remain ‘all in’ on stores and have significant funds set aside to invest in technology, so we expect 2025 to be an exciting year.”
The study underscores that advancing retail technology, particularly through mobile and POS systems, will be integral for retailers looking to compete effectively in 2025 and beyond. The investments retailers make now will define their ability to meet rising shopper expectations and adapt to a rapidly evolving retail landscape.
