IDC: Top 10 predictions for global retail in 2023

A customer-led, technology-enabled revolution is transforming the retail industry.

That’s according to global market intelligence firm IDC, which has released its annual “FutureScape: Worldwide Retail 2023 Top 10 Predictions.” The report predicts how the worldwide retail industry will evolve.  

Below are IDC’s top 10 predictions:

1. By 2025, 20% of the top 100 global retailers will drive holistic business result using distributed artificial intelligence (AI) systems with integrated data across retail planning, decisions, operations, and optimization.
2. By 2025, 50% of retailers will increase data management and governance technology investments by at least 20% to obtain insights from growing amounts of data to increase omnichannel revenue.
3. By 2027, 10% of retailers will employ software-defined store services models to make it easier to deliver innovative technology in the store.
4. By 2027, 40% of retailers will implement critical product life-cycle KPIs that tie environmental factors to supplier selection throughout the entire supply chain.
5. By 2024, 60% of retailers worldwide will use API integration to connect owned, third-party, and social commerce platforms to optimize customer interfaces through omnichannel marketplaces.
6. By 2026, retailers will solve the challenge of matching inventory plans to omnichannel orders, resulting in a 15% reduction in split shipments, 7% reduction in packaging, and a 20% increase in customer satisfaction.
7. By 2024, 65% of retailers will invest in visual commerce to enable personalization through 3D product configuration and virtual try-on.
8. By 2026, 40% of retailers will implement end-to-end integrated cloud security solutions to secure data across omnichannel applications and endpoints while reducing the number of cyberattacks and losses.
9. By 2025,   over 90% of the top 100 global retailers will build their own retail media network or will partner with a media vendor/provider to develop one.
10.  By 2023, 75% of enterprise retailers will double deployment of mobile devices for associates to improve customer service by continuous learning, communication, and operational guidance.

"Retailers are not investing in small step changes to their portfolios, they are digitally transforming and investing in the massive scale and speed of digital, cloud-based, connected, AI-driven, and sensor-driven automation,” said Leslie Hand, group VP, IDC Retail and Financial Services.” We are in the middle of a customer-led, technology-enabled revolution in retail."

[Read more: IDC: Top supply chain predictions for 2022-2026]