Digital Strategies for European Retailers: Driving Profitability in a Changing Market [Infographic]


In the rapidly evolving landscape of retail, European retailers face unique challenges and opportunities in their quest to enhance profitability and also efficiency through digital transformation. This article explores the state of retail operations in Europe, focusing on strategies to drive store efficiency by leveraging data analytics and artificial intelligence. here some digital strategies for European retailers

Addressing Supply Chain and Inventory Management Costs

European retailers report greater challenges in managing costs related to inventory, supply chain, and labor compared to their counterparts in other regions. Key areas of difficulty over the past 12 months include:

Operational Planning: 55% of retailers found operational planning to be the most challenging aspect.

Inventory Management: 44% of European retailers struggled with inventory management costs.

Supply Chain Management: 42% faced significant challenges in managing supply chain costs.

Labor and Staffing: 30% found labor and also staffing costs difficult to control.

To address these challenges, retailers must focus on reducing costs associated with supply chain and inventory management. This can be also achieved through the integration of advanced technology solutions that streamline these processes.

Investing in Data Analytics and AI

European retailers are leading in data analytics investments, but they lag behind in adopting AI/ML and also workforce-related technologies. Less than half of European retailers currently invest in these areas, indicating a significant opportunity for growth.

Challenges in Adapting to Fast-Changing Retail Environments

Access to Customizable Technology: 61% of retailers struggle with accessing technology that can be customized to their needs.

Lack of Scalability: 34% report issues with scaling their technology platforms.

To overcome these challenges, European retailers should continue investing in data analytics and also consider increasing their use of AI to improve operational agility and adaptability.

Current Technology Investments

European retailers are investing in various technology solutions to manage costs and also margins effectively:

Financial Planning Software: 55% of retailers use financial planning software, which is 12% higher compared to other regions.

Data Analytics Software: 54% have invested in data analytics tools.

AI/ML (including GenAI): 49% utilize AI and machine learning to enhance decision-making.

Workforce Planning Software: 45% have adopted workforce planning solutions.

HR/Workforce Management Software: 37% use software specifically for HR and workforce management.

Leveraging AI for Cost and Margin Management

To fully realize the benefits of digital transformation, European retailers should leverage AI to proactively identify and also manage unexpected costs. Key technologies that retailers believe will help in this area


AI/ML (including GenAI): 30% of retailers think AI/ML will be crucial in identifying and also managing costs.

Data Analytics Tools: 24% emphasize the importance of data analytics.

Prescriptive Analytics: 17% believe prescriptive analytics will help manage costs.

Predictive Analytics: 17% see predictive analytics as a valuable tool for forecasting and also managing expenses.


European retailers are at a critical juncture in their digital transformation journey. By focusing on reducing supply chain and inventory management costs, investing in data analytics and AI, and also overcoming technological scalability challenges, retailers can also significantly enhance their operational efficiency and also profitability. Embracing these strategies will position European retailers to thrive in a fast-changing retail environment.

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