AI and automation reshape retail as shopper patience declines, Zebra study finds

Retailers across Asia Pacific, including India, are accelerating their adoption of AI, automation and real-time intelligence as shopper satisfaction drops for the second year in a row and expectations continue to rise, according to Zebra Technologies’ new Global Shopper Study. The research highlights a retail sector under pressure from inflation, stockouts, labour shortages and shrinkage, and shows how technology is becoming the most critical tool to rebuild trust and improve profitability.

Zebra surveyed more than 4,200 shoppers, retail associates and decision-makers in May and June 2025. The findings reveal that while consumers are more price-sensitive, they also demand faster, seamless and more personalised experiences across both online and physical channels. Eighty-seven per cent of retail leaders believe generative AI will have a significant impact on loss prevention, and more than eight-in-ten of store associates say that better tools make their jobs easier, faster and more enjoyable.

A dramatic shift in expectations
George Pepes, APAC Vertical Solutions Lead, Retail, Zebra Technologies, said the most important trend is that shoppers no longer separate physical and digital interactions. They move fluidly between browsing, buying and returns, and expect retailers to keep up.

“Shoppers aren’t just changing how they shop, they’re changing how they expect retailers to work. They want seamless, personalised experiences, and technology is at the centre of making that happen,” he said. According to Pepes, satisfaction is not collapsing overnight, but it is “slowly eroding”, and the long-term trend matters. In just three years, satisfaction has dropped by six points in-store and twelve points online.

This decline is not driven by a single reason. Shoppers are frustrated by empty shelves, products being locked away, delays in assistance and a lack of self-checkout lanes. They also expect retailers to use modern tools. Three-quarters now believe retailers should use the latest technologies to ensure consistency between channels. What was once considered innovative is now simply expected.

Pepes noted that price sensitivity has shaped behaviour, but not because shoppers want to switch brands, but because they were forced to. “Many have changed brands because of price rises, not because they wanted to,” he said. Discounts still matter. Seventy-eight per cent of shoppers say coupons or discount codes are more important than ever, and more than eighty per cent say they are more likely to buy when they receive an offer. But he emphasised that “context has changed.” Discounts carry more weight when they are relevant, timely and personalised.

Personalisation emerges as competitive ground
Pepes described personalisation as a “cost of entry”. Seventy-two per cent of shoppers want to see more personalised offers and ads. The most successful retailers, he said, are connecting inventory data, fulfilment systems and customer insights to deliver relevance in real time. “Getting the right offer to the right shopper at the right moment turns pressure into opportunity,” Pepes said. “When operations are connected, the experience is personal, not just promotional.”

AI is central to this transformation. Retail leaders believe generative AI will influence every part of retail, from pricing and promotions to forecasting and product discovery. Eighty-four per cent of decision-makers say AI will drive more personalised recommendations, and eighty-six per cent believe it will play a major role in forecasting and inventory planning. Sixty-one per cent of shoppers already believe AI will enhance their experience by making interactions more relevant.

Inventory visibility and shrinkage
The study shows that almost half of shoppers worldwide still leave stores without all the items they intended to buy. Real-time inventory synchronisation is now one of the top priorities for retailers. To reduce shrinkage and improve visibility, they plan to deploy computer vision, RFID and generative AI over the next five years.

“When retailers provide associates with the right tools, the friction is removed. Technology does not replace the human connection, it strengthens it,” Pepes said. Seventy-one per cent of shoppers report that their experience improves when a store associate uses the latest technology. “AI is no longer something in the future. It is a practical tool shaping how decisions are made, how things work and how shoppers engage,” he said.

A recent study by Zebra and Oxford Economics found that optimised workflows could increase satisfaction by up to twenty-one per cent and deliver up to 1.8 percentage points of revenue and profit growth. This shows that operational intelligence is not just a back-office function but a direct driver of customer experience.

India: A growing market for technology and retail
Subramaniam Thiruppathi, Director, Sales, India and Sub-Continent, Zebra Technologies, said India is now one of the most important growth markets for retail digitisation. Zebra operates two of its largest R&D centres globally in India, including a 250,000 sq ft facility in Bengaluru with around 1,200 engineers. “They are not just writing code. They are designing hardware,” he said. India also has a 400-strong software development centre in Pune.

Thiruppathi said that eighty per cent of Fortune 500 companies touch Zebra somewhere in their operations, whether through a printer, scanner, mobile computer, RFID reader or vision system. “In India, we are present everywhere. You go to Rajasthan Police, you will see our tablets. You see us in manufacturing, retail, logistics, even toll operations,” he said.

He believes India’s growth is powered by manufacturing investment. Towns like Tiruchirappalli and Nashik are seeing hundreds of millions of dollars being invested in factories. This fuels employment, strengthens the middle class and drives retail demand. “When manufacturing grows, retail grows. When retail grows, transport and logistics grow. This ecosystem creates an incredible opportunity,” he said.

Thiruppathi highlighted that India’s retail market is worth around US$1.2 trillion and is expected to double by 2030. Organised retail is still only about twelve per cent of the market, and e-commerce is around three per cent within that, but growing faster than ever. “This is where I am very excited. This market will grow faster than ever,” he said.

Zebra is involved in several national projects supporting digitisation, including tolling, mobility and safety systems. Thiruppathi said one of the largest and most complex projects is for the Indian Railways, involving avoidance and collision technology. “We are one of the few technology vendors working with system integrators to implement this,” he said. “This is happening right now and is very active.”

Building trust through seamless experiences
Both speakers emphasised that technology and people must work together. Shoppers expect speed, visibility and reliability. Associates want tools that make their work easier. Retailers want less shrinkage and better profit.

But the common thread is connection.

“Shoppers deserve to enjoy a modern store experience,” Thiruppathi said. “It’s not just about finding the right products and great deals. Retailers should focus on creating meaningful connections and seamless, hassle-free interactions.”

The study confirms that these connections are built on real-time intelligence. When stock is visible, when pricing is accurate, when associates have information, and when experiences are consistent across channels, trust grows. When those elements fail, trust erodes.

Retail is being reshaped from the inside out. Not by dramatic visible changes, but by thousands of decisions happening behind the scenes, powered by data, AI and automation. As Pepes summarised, “Progress isn’t just visible on the shop floor. It’s being driven by the systems, the teams and the decisions happening just out of sight. And that is reshaping what the future of retail looks like from the inside out.”