Retail Analytics Market Analysis

Retail Analytics Market Analysis

The customer management segment is projected to exhibit around 25% growth rate through 2032. Customer management using analytics helps retailers to gain actionable insights from customer data and devise new strategies to improve customer loyalty via customized and buyer-centric offers. For instance, in August 2022, Monday.com, a cloud-based management software platform launched a fully customizable Monday Sales CRM to support teams working across project management, marketing, software development, and sales.

Integration and deployment service segment accounted for more than 40% share of the retail analytics market in 2022. Embedded analytics has penetrated the retail sector and has accelerated the integration and deployment of analytical solutions and data visualization capabilities into software.

The advent of next-generation technologies such as AI and deep learning has allowed analytics service providers to correlate, assess, and evaluate retail business activities more effectively. Embedded retail analytics offers several advantages including improved decision-making, efficient analysis & data integration, and improved sales strategy. It also allows companies to predict future sales to boost profit.

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On-shelf availability segment held more than 30% market share in 2022, due to their ability to effectively place re-orders and warn in case of critical stock shortages. Stockouts are a major concern for retailers worldwide. Approximately 50% of stockouts occur due to unproductive store practices such as store inventory, replenishment, ordering, and projecting. The COVID-19 pandemic dramatically fueled stockouts by 250%, accelerating the need for OSA solutions.

The cloud deployment mode segment is expected to witness growth of 25.5% from 2023 to 2032. Cloud-based data analytics is empowering the retail landscape with improved scope for the optimization of operations. It offers several advantages including business agility and better collaboration and communication with partner firms and customers. High preference for cloud platforms among retailers can be attributed to the on-demand computing power which allows them to deal with large volumes of data and deliver actionable insights in a limited period.

Europe retail analytics market is poised to grow at a CAGR of 23% during the forecast period, owing to changing customer preferences and rapid digitization. A sustainable rise in investments into AI-based digital tools to overcome inconsistencies in the supply chain and address retail shrinkage will offer lucrative opportunities for the providers of retail analytics. Europe also has a vast landscape of leading retail brands and companies boosting online presence.