‘Don’t waste a cost crisis – it can catalyse much-needed change’

‘If the cost of labour is increasing, isn’t it obvious? Businesses will inevitably look to technology.’

It’s a statement that’s been brewing in my mind for a while, and rising costs from the recent autumn Budget, constrained household budgets and fragile consumer confidence have only underlined its truth for me.

The question isn’t just whether to lean into tech-driven solutions, but whether we’ve positioned ourselves to do so effectively. Are you truly ready to invest in technology in a way that’s both calculated and productive? If not, you might already be falling behind.

Economic pressure forces evolution. We’ve seen this before. The pandemic forced businesses to pivot overnight to online sales and digital infrastructure. Those who were agile, data-rich and tech-enabled absorbed the shock, while others scrambled to catch up. Once again, economic headwinds are urging companies to speed up the adoption of technology that some had hesitated to deploy in the past.

This isn’t simply about survival – it’s about seizing opportunities. The tools already exist. The question is whether you’re ready to harness them, not just for cost-efficiency but for driving growth and enhancing customers’ experiences.

Take retail media as an example. For years, retailers have relied on traditional methods to engage customers in-store – printed promotions pasted on aisle ends, or generic campaigns catering to wide audiences. But today’s environment calls for something smarter, more dynamic, and yes, more tech-infused.

It’s already possible to tailor promotions to customer profiles, powered by rich data insights. Electronic displays have advanced to the point where they’re no longer just price tags. Retailers can even partner with non-traditional advertisers, such as health insurers or travel companies, monetising their audience-specific data to offer broader promotions in-store.

It’s more targeted, it’s more effective, and – when used thoughtfully – it’s a win-win for businesses and consumers alike.

The business case for technology investment

Electronic shelf-edge labelling once struggled to gain traction, particularly in the UK where cheaper workforce solutions seemed more viable due to flexible employment laws. However, rising labour costs and advancements in shelf-edge technology that enable retailers to provide interactive in-store experiences have shifted the dynamics.

Here’s where it all converges – data. It’s not just about putting in place high-tech tools, it’s about making them work for you through data-driven insights. Retailers leveraging technology to understand who their customers are, what they want and how they shop are already ahead of the curve. With these insights, businesses can rapidly adapt to economic shifts.

Take, for example, our 2025 Global Consumer Outlook report, which projects a 25% drop in UK non-food retail spending next year. With shoppers focusing on essentials, technology helps retailers meet this demand by guiding customers toward better savings via promotions, or cost-effective substitutions. By becoming ’friends of the consumer’ – offering trust, value and tailored experiences – retailers can build loyalty in a way that traditional methods simply can’t touch.

Don’t waste a cost crisis

Every period of upheaval brings an opportunity for evolution, and the current economic climate can be a catalyst to implement long-needed changes. Better data, smarter technology and next-level personalisation are no longer futuristic aspirations – they’re necessities for resilience.

What’s stopping retailers from making these investments now? With rising labour costs and constrained consumer wallets, there’s no better time to break businesses’ dependency on outdated models. Use technology to create an ecosystem that protects you from the next shock – it won’t be far away.