65% of retailers say their personalisation strategies are in ‘pilot’ or ‘basic’ stages, while only 14% report ‘advanced’ cross-channel delivery
Most brands still lean on generic personalisation tactics such as email campaigns (36%) and loyalty programmes (35%)
Insiders point to a lack of in-house skills (36%), poor data quality (33%), and high costs (33%) as the biggest barriers to AI adoption
LONDON–(BUSINESS WIRE)–New findings show that most British retailers can’t provide consumers with personalised shopping experiences, industry leaders warn.
According to Valtech’s report based on a survey of 700 senior executives at the world’s largest retailers, many organisations acknowledge they are still working to unlock the full potential of personalisation. Despite years of investment, many brands report ongoing data and integration challenges that may threaten to limit the effectiveness of personalisation.
Figures show that although most retailers continue to develop their personalisation offers and strategies, just over a third describe their efforts as “advanced”. In fact, only one in seven says they have fully embedded it across all their channels and touchpoints. Most continue to rely on email campaigns (36%), loyalty programmes (35%), and basic behavioural targeting (34%), while at the same time, measurement practices remain surface-level: 39% track conversion rate improvements, 38% monitor CSAT/NPS, 27% measure repeat purchases, and only 21% track customer churn.
Glynn Davis, retail expert, says: “Retailers have pumped millions into personalising customer experiences through technology, but this research suggests progress remains questionable. At the heart of any personalisation is data and insights that provide people with experiences which feel personal – yet, many continue to struggle with poor datasets and a lack of in-house expertise.”
Retailers struggle to provide ‘unified shopping’ experiences
The data confirms that even among large, digitally mature retailers, delivering a seamless omnichannel experience remains a challenge. While 46% describe their customer experience offering as “fully unified across all touchpoints,” 35% admit ”gaps exist” in integration, and 19% still operate with “basic, siloed or entirely independent systems”. When asked about potential challenges, 96% reported at least one significant obstacle, with the most common being customer identity consistency (17%), data integration between systems (16%), inventory visibility (12%), and measurement or ROI clarity (10%).
This exposes deep flaws in how retailers manage and deploy customer experiences. For shoppers, this translates into common frustrations, such as malfunctioning shopping baskets, missed discounts, and store assistants who are unaware of stock levels. On the other hand, this disconnect not only frustrates shoppers but also affects retailers’ revenues. Each missed handoff between store, app, and web erodes trust and drives customers toward bigger, better competitors who have perfected their omnichannel delivery.
Retailers embrace AI for both service and savings
When it comes to AI, the data shows widespread adoption among retailers. Almost all (97%) have implemented or tested AI in some form, mostly using it to deploy chatbots and virtual assistants (51%), offer product recommendations (48%), or optimise campaigns (47%).
The top motivators for adopting AI are split between enhancing customer experience/personalisation (45%), improving operational efficiency/reducing manual work (50%), and reducing costs/optimising resources (31%).
Yet despite all this, progress remains limited. Nearly half (44%) of those who have implemented or tested AI say they’ve struggled to move beyond pilot phases or achieve consistent success. Retailers blame a lack of in-house expertise (36%), poor data quality/governance (33%), high implementation costs (33%), and competing internal priorities (32%).
Glynn Davis, adds: “AI has been touted as the saviour, but without solid foundations, retailers risk pouring even more money into projects without understanding how they’ll deliver value. The real worry here is that AI might be used as a cost-cutting tool rather than a way to genuinely improve shopping experiences.”
Retail’s personalisation wake-up call
Despite many retailers claiming advanced personalisation capabilities, the study shows that only a small percentage can do it intelligently, in real time, and across all channels. After years and millions of investment in technologies, it’s clear that brands are discovering just how complex personalisation really is.
“The retail industry is at a crossroads,” says Matt Hildon, European Retail Director at Valtech. He adds, “after decades of digital investment, most brands still struggle to connect data with human behaviour. Shoppers are tired of being treated like transactions. True innovation won’t come from more automation, it’ll come from rebuilding trust and making personalisation genuinely personal.”
To access the full report, visit: valtech.com/retail-at-the-crossroads-2026/
Notes to editors
About the research
The ‘Retail at the Crossroads’ Report was conducted by Vanson Bourne and commissioned by Valtech in August 2025 to understand how retailers are navigating digital transformation, AI, and omnichannel strategies. The findings are based on responses from 700 retail decision-makers across North America, Europe, LATAM, Asia, and MENA, representing C-suites and Senior Managers involved in digital transformation at organisations with over $500 million in revenue.
About Valtech
Valtech, the global leader in experience innovation, exists to unlock a better way to experience the world. By delivering sustainable, human-centric digital solutions that prepare businesses for the future, we empower brands to leapfrog the competition and surpass best practices. Our 7,000-strong team in 24 countries crafts intelligent, personalized experiences that blend crafts, categories and cultures. At the intersection of data, AI, creativity and technology, we touch lives, grow businesses and unlock value in a digitally accelerated world. Our clients include the world’s leading brands, such as L’Oréal, LVMH, Mars, P&G, Volkswagen, Dolby, Santander and BBC. See our work at Valtech.com.
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