Released at the World Retail Congress, the study shows supply chain capabilities rank among the top three areas for increased spending in 2026, according to 56% of retail executives surveyed.
Customer experience and personalisation, cited by 72% of executives, along with investment in AI and advanced technology, highlighted by 58%, also remain high priorities, indicating a focused approach to enhancing resilience and flexibility within existing operations.
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The research points to rising caution throughout the retail sector. Fewer than one in six executives reported pursuing aggressive growth strategies, with most respondents targeting selective expansion while managing costs and operational inefficiency.
Over three-quarters of executives identified geopolitical instability and trade disruptions as major strategic influences, while 72% named inflation and shrinking margins as additional structural constraints.
Many retailers acknowledge difficulties in rapidly executing their strategies. Seventy percent of executives said they were slower to move from decision to execution compared to competitors, exposing a persistent gap during a period when response speed is increasingly critical.
Incisiv chief insights officer Gaurav Pant said: “With external pressures unlikely to ease in the near term, the focus is on making smarter, more targeted bets that deliver both resilience and long-term value. What stands out from the research is the gap between intent and execution. Closing that gap will be critical for retailers looking to stay competitive in a more demanding environment.”
Technological developments are further reshaping how retailers operate and engage with customers, with 98% of executives surveyed expressed concern about the rise of AI-driven search engines. They believe this could reduce brand visibility by shifting control of customer discovery to algorithms.
Supply chain and unified commerce remain central to ongoing investment as these changes unfold.
The study also found that more than 80% of executives consider stores and owned online platforms critical to their business in the coming years, supported by emerging platforms such as retail media and AI-powered discovery.
Manhattan Associates senior vice president and chief marketing officer Katie Foote added: “As customer expectations rise, personalisation is no longer a nice-to-have. Shoppers expect retailers to know them, anticipate their needs and deliver seamlessly across every channel.
“That only happens when retailers can apply AI to real-time inventory, order and fulfilment data. Unified commerce is what brings those pieces together, turning AI from a promise into the kind of connected experience that builds loyalty and drives profitable growth. This becomes even more important with the current macroeconomic trends and volatile global environment.”
