What Happens When 51% of Retailers Say They Aren’t ‘Data Ready’

Forget the days of gut instincts and guesswork. In today’s data-driven operating landscape, real-time insights have gone from the cherry on top to the whole sundae.

This is particularly true in retail, where timely insights can translate into actionable strategies. Retail remains a sector where consumer expectations are fickle and in flux, trends move at lightning speed, and inventory that sits too long isn’t just wasting shelf space, it’s eating profits.

Try to imagine a retail manager working to optimize inventory without accurate, real-time data. Products either pile up in storage or vanish from shelves before restocking. Now scale this problem across an enterprise. Decisions based on delayed or siloed information can lead to missed opportunities, errors and stunted growth.

The capability to use real-time insights can help retailers reduce markdowns, avoid stockouts and offer personalized shopping experiences that keep customers coming back for more.

However, gaps remain between aspiration and implementation, and for many retailers, the journey toward a cutting-edge, data-driven operation is still underway.

Read also: Retailers Master Data Readiness to Deliver Amazon-Like Experiences

A Retail Future Powered by Real-Time Decisions

As competition intensifies and consumer expectations evolve, the importance of real-time data will only grow. Businesses that embrace this shift will be better equipped to navigate uncertainty and seize opportunities. Those that don’t risk falling behind, unable to keep pace with faster, more agile competitors.

According to findings in the PYMNTS Intelligence report “Data-Driven Advantage: How Grocery and Retail Merchants Can Accelerate Growth,” a collaboration with Carat from Fiserv, 73% of grocery merchants with a data analytics team reported revenue growth in the last year, while 72% of non-grocery retailers cited access to real-time supply chain data as very or extremely important to their decision making.

Despite the advantages of real-time data solutions, many businesses struggle to implement them. Data silos are a hurdle, as over half of grocery and retail merchants operate with fragmented data systems. These silos prevent departments from sharing insights, creating blind spots that impede growth.

Breaking down silos requires a deliberate, company-wide commitment to data integration. Businesses that centralize their data — making it accessible to all relevant teams in real time — can operate with a unified strategy. This ensures that every department works with the same set of accurate, up-to-date information.

See also: The Integration Pros: How CFOs and Treasurers Bridge Operational Silos

At the same time, real-time data is only as good as a firm’s data readiness. Ensuring information is accurate, timely and accessible lays the groundwork for effective decision making.

The report found that fewer than half of studied businesses (42% of grocery merchants and 36% of non-grocery retailers) had dedicated analytics teams that could analyze companywide data. This means that even when data is accessible, organizations may not be setting themselves up to derive meaningful insights.

Within grocery specifically, the report found that 62% of grocery merchants experienced errors and delays due to not having access to complete, timely or ready-to-consume data in the last 12 months.

Overall, 51% of retailers and 39% of grocery merchants reported lacking access to real-time data. When it comes to the data they did have on hand, these businesses were most likely to have access to customer and market data, but they were less likely to have real-time supply chain, sales or performance data.

Achieving data readiness can frequently require investment in technology and processes, including tools for data integration, platforms for real-time analytics, and robust governance frameworks. For many businesses, cloud-based solutions can provide the scalability needed to manage large volumes of data efficiently.

Bottom line? In the retail sector, those who aren’t plugged into real-time data are already behind the times — and in this game, time is money.

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