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Recently, the strategy firm Kearney published a ground-breaking report on the digital transformation of physical retail called “Closing the Digital Gap”. Presented at Tech for Retail last November, this report stresses an urgent need: while online retail has seen massive digital investments, physical stores remain largely analog. This imbalance creates operational inefficiencies and limits the ability to meet rising consumer expectations. The solution? A connected, data-driven retail model that enhances agility, optimizes inventory, and improves the shopping experience.
Staying Competitive By Modernizing Stores
It is becoming imperative for retailers to move past traditional planograms and reach real-time store management. The “Store of Tomorrow” (as called in the Kearney report) embraces a seamless integration of AI, automation, and real-time analytics. Case studies presented in the report demonstrate how B&M can already use the help of AI-powered robots to scan shelves, detect misplaced items, and optimize restocking. The 30% improvement in stock conditions reached through this implementation is why we are continuously working on solutions (Electronic Shelf Labels and Computer Vision / AI) that provide uninterrupted shelf monitoring, and help retailers increase efficiency by reducing human errors.
Streamlining Operations & Enhancing Customer Experience
Stockouts and waste remain major retail challenges. As highlighted by the Kearney report, retailers lose millions annually due to out-of-stock (OOS) situations. By implementing VusionCloud for automated stock tracking and Memory for demand forecasting, waste reduction, and lower labor reliance, Monoprix successfully increased product availability by 2–3 points and improved turnover by 1.2% per store.
The Business Impact of Digitalization
As the report highlights, store digitization is, beyond a technological upgrade, a strategic investment. Kearney’s analysis demonstrates how connected store models drive profitability thanks to optimized inventory, reduced shrinkage, and enhanced workforce efficiency. An iterative approach is possible, using data-driven KPIs to scale digital transformation. VusionGroup’s SaaS solutions, such as Engage and PDidigital, support this step-by-step adoption by minimizing capital expenditure while maximizing ROI. For instance, our digital shelf labels enabled Walmart to update prices directly via a mobile app, eliminating the need for manual paper tag changes and allowing associates to focus more on assisting customers in-store.
From reactive store management to predictive, AI-driven operations, retail is undergoing a fundamental shift of which VusionGroup has been at the forefront for over 30 years. Publications on the connected store like the Kearney report, solidify our conviction that Retailers can redefine the in-store experience by embracing these innovations, thus future-proofing their business.
To dive deeper into these insights, download the full report and contact our experts today.
Kearney is a global management consulting firm founded in 1926, with offices in over 40 countries. Specializing in strategic and operational issues, it serves businesses, governments, and non-profit organizations. Kearney is recognized for its expertise in areas such as, innovation, technology strategy, organization and transformation, and sustainability.
