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AI innovation and omnichannel are critical to retail success in 2026

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Kyndryl Readiness Report reveals that retailers that prioritize operational fundamentals and technol...

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AI Summary

Kyndryl's report highlights retail integration challenges amid rising AI investments. 48% of retailers upgraded IT infrastructure, facing significant technical debt. 80% of retail sales occur in physical stores, emphasizing operational discipline. Only 15% of retailers utilize omnichannel systems to their full potential. 89% believe AI will transform retail roles, with minimal concern for upskilling.

Sentiment Rationale

Kyndryl's leadership in IT services positions it to benefit from retail technological advancements. Historical examples show tech service firms thrive during retail digitalization phases.

Trading Thesis

Sustained benefits expected as retailers increasingly adopt integrated tech solutions, similar to past market transitions.

Market-Moving

  • Kyndryl's report highlights retail integration challenges amid rising AI investments.
  • 48% of retailers upgraded IT infrastructure, facing significant technical debt.
  • 80% of retail sales occur in physical stores, emphasizing operational discipline.

Key Facts

  • Kyndryl's report highlights retail integration challenges amid rising AI investments.
  • 48% of retailers upgraded IT infrastructure, facing significant technical debt.
  • 80% of retail sales occur in physical stores, emphasizing operational discipline.
  • Only 15% of retailers utilize omnichannel systems to their full potential.
  • 89% believe AI will transform retail roles, with minimal concern for upskilling.

Companies Mentioned

  • IBM (IBM)
  • WMT (WMT)
  • AMZN (AMZN)

Research Analysis

The report underscores strategic shifts in retail that align with Kyndryl's service offerings, likely impacting market position.

Kyndryl's 2025 Retail Readiness Report: Adapting to AI and Operational Challenges

Kyndryl (NYSE: KD), a prominent provider of essential enterprise technology services, has unveiled its findings from the 2025 Retail Readiness Report. This comprehensive report highlights how retailers are navigating the complexities of ambitious AI initiatives and digital transformation while contending with operational challenges in a sprawling $30 trillion global market. The emphasis on maintaining physical stores can’t be overstated, as they remain pivotal to retail success.

Significant Investments Amid Operational Hurdles

According to the report, 48% of retail leaders have made substantial upgrades to their IT infrastructures over the past year, and investments in AI have surged by 33%. Despite these advancements, almost a quarter of participants cite persistent technical debt as a significant barrier, hampering their full potential. Notably, over 80% of retail sales continue to occur through brick-and-mortar establishments, underscoring the need for adept omnichannel strategies that prioritize operational discipline over merely introducing new capabilities.

"Retail is entering a critical era where every technology investment must prove its value," stated Rachel Calhoun, Global Vice President for Retail at Kyndryl.

Key Insights from the Report

  • Return to Basics for Competitive Advantage: Retailers are focusing on inventory precision, optimizing stock-keeping units, and enhancing store-level agility to capitalize on in-store sales.
  • Urgent Integration of Omnichannel Systems: Only 15% of retail leaders feel they are fully utilizing their omnichannel systems. Many face challenges due to fragmented digital tools and manual processes.
  • Barriers to Agentic AI Adoption: Although investment in AI is growing, hurdles such as data silos and organizational resistance are common. Integrating autonomous AI within robust governance frameworks is essential for success.
  • Technical Debt Risks Innovation: Nearly one-third of executives report key infrastructure components nearing their end-of-service, with almost half indicating that foundational technology issues delay innovation.
  • Accelerating Workforce Transformation: A striking 89% of retail leaders believe AI will drastically reshape industry job roles in the coming year, yet only 33% are concerned about upskilling their impacted workforce.

Conclusion and Future Directions

The insights from the 2025 Retail Readiness Report illuminate the critical need for retailers to harmonize their physical and digital operations. As Kyndryl (NYSE: KD) emphasizes, the balance between responsible AI deployment and operational integrity will play a crucial role in shaping the future of retail.

About Kyndryl

Kyndryl (NYSE: KD) is a leading provider of mission-critical enterprise technology services, offering advisory, implementation, and managed service capabilities to thousands of customers across more than 60 countries. As the world’s largest IT infrastructure services provider, Kyndryl designs, builds, manages, and modernizes complex information systems that the world relies on daily. For more information, visit www.kyndryl.com.

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