Retailers are racing to meet consumer expectations for seamless, data-driven shopping experiences across online and in-store channels. But many are still reckoning with the challenges of integrating omnichannel strategies, modernizing legacy systems, and managing the costs of digital upgrades.

The retail sector has notoriously thin margins, where every bit counts toward the financial bottom line. But aging infrastructure, energy price volatility, and climate-related risks increase the threat of costly disruptions. A single refrigeration failure can mean millions in lost inventory, while HVAC or roof issues can force store closures, cutting off revenue.

Sustainability is no longer a niche concern — 75% of Millennials and Gen Z prioritize it over brand names when shopping. Today’s consumers expect to see commitment in action, from rooftop solar installations to demonstrable progress on publicly reported decarbonization goals.

In a world of ever-changing consumer preferences and chronic employee turnover issues, retailers are on the hook to provide comfortable, engaging environments. Though there’s clear value in delivering more enjoyable spaces, tight budgets make facility updates a high-stakes challenge for retail leaders needing to do more with less.

With the rise of electric vehicles, more consumers are choosing to shop at stores that offer charging stations as part of their retail experience. The challenge for retailers now is to deliver on this growing appetite, while balancing the costs, real estate demands, and operational impact of adding a new service without disrupting the overall business.

Retail mergers and acquisitions are on the rise, with 53% of executives reportedly planning major M&A investments in 2025 versus 30% in 2024. This puts even greater pressure on retail leaders whose job it is to integrate diverse, far-flung new locations into their portfolio, while driving efficiency and performance across newly combined footprints.