Retail execs predict tech investments will increase in 2024

The future is now, old man.

Nearly all (99%) of major retail executives believe there will be a spike in technology investments, according to new survey data from IT consulting and digital service firm SoftServe and Wakefield Research.

• Specifically, investments are expected to increase 10% across the board, while 94% of respondents said that technology will be a major driver of new customer acquisition.

Just under half (44%) of executives said improving the customer experience is retailers’ top goal this year that’s driving new tech implementation and strategy. That’s followed by 38% who said customer retention and roughly a third (32%) who said customer acquisition.

“With the rise of e-commerce and embedded finance—and now, AI—ingrained in every fragment of the retail industry and its counterparts, executives are seeing technology measures as the only way forward to a competitive future,” Mike Ortiz, SoftServe’s segment head of retail, said in a statement.

The majority of those surveyed (71%) said store operations is the main area where tech investments will go in 2024, followed by sales and marketing (60%), customer service and support (59%), and supply chain and logistics (58%).

• And to get more specific, the kinds of technologies executives believe will be further invested to meet their 2024 goals include mobile apps (48%), security and fraud protection (46%), machine learning (36%), and generative AI (25%).

“From online carts to last-mile deliveries, or storefront shopping to contactless payments, retailers are thinking about how they can control and provide a seamless experience. Their chosen technology investments and predictions will be key in how these scenarios evolve and transform the industry in 2024,” Ortiz said.