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2025 State of the Industry

Store Innovation

Q4, 2024

Physical stores are evolving from traditional sales channels into dynamic platforms for commerce, fulfillment, and customer engagement. This transformation is driven by leading retailers who are reimagining their store strategies to integrate digital and physical touchpoints seamlessly. With advancements such as smart fitting rooms and hybrid fulfillment models, stores are not just adapting but reshaping the way they create value for both businesses and customers.

The ‘2025 State of the Industry: Store Innovation’ report explores key trends shaping the future of retail. It highlights how leading retailers are leveraging personalization, rapid experimentation, operational excellence, and sustainability to build adaptable store ecosystems. Through in-depth analysis and insights from 440 global retail leaders, the report provides a roadmap for successfully navigating the next chapter of physical retail innovation. Discover how physical stores are transforming into versatile hubs that combine commerce, fulfillment, and customer engagement.

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As consumers continue to reshape their expectations,

enterprises must contend with a uniquely challenging landscape.

The consumer technology landscape is forever changing.

From Pinterest to TikTok, WeChat to Instagram, new experiences can rapidly gain consumer adoption and relevance.

Consumer, Technology, Incisiv

From augmented reality to voice, smartwatches to chatbots, consumers are constantly embracing new interaction paradigms.

Commoditized convenience is eroding loyalty and margin.

Consumers expect convenience. If you can't deliver it, they'll go elsewhere - e.g. next day shipping becoming the new standard.

Walmart will reportedly lose USD 1 billion on eCommerce revenue of USD 21 billion this year as it faces challenges in its bid to complete against Amazon – from trouble integrating its DNVB acquisitions to impact on margin from its next-day delivery operations.

Consumers value experiences that are curated to fit their lives better.

They want to engage, be served, and transact at their time, their pace, their place. They have little patience, infinite choice and the freedom to swipe left at the slightest hint of friction.

Consumer, Experience, Incisiv

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