Consumer traffic is not the problem. 83% of UK shoppers still regularly choose to do so in-store, and 72% of all UK retail sales still happen in a physical store. Footfall exists. The harder question is what retailers are doing with it.
Too many stores are busy without being brilliant. They need to shift their focus from bringing technology to their physical stores to creating a clear value argument as to why a customer should choose to spend their time there rather than anywhere else.
North Highland recently brought together senior retail executives for a candid conversation on exactly that challenge, led by John Ryan, Retail Analyst and founder of Newstores, and Katie Bickerstaffe, former Co-CEO of Marks and Spencer and board-level advisor. Below are the key themes that emerged, combined with John's perspective on what genuine differentiation requires in 2026.
1. When screens add value and when they create noise
Think of it like a browser with too many tabs open. Nobody can tell you which ones matter.
More screens, more digital signage, more interactive kiosks. The investment in in-store technology is accelerating, and the discipline around how to deploy it is not keeping pace.
"The digitisation of stores needs to be strategically thought through and curated, not just because at a moment in time a brand has funded it."
Research shows that 64% of shoppers say digital smart screens positively affect their in-store experience, and 82% find the content memorable. But that goodwill is conditional. The retailers making screens work are not focused enough on customer experience and business value creation.
The conversation in the room was direct. Attendees described screens installed through supplier-funded deals with no clear customer case, no maintenance plan and no one accountable when they stopped working. Expensive installations ignored by shoppers. A flagship screen still showing its original content four years on. The pattern is familiar and the lesson consistent: screens earn their place when they set a mood or draw the eye through a store. They do not earn it when they try to replicate online interactivity. Where they are replacing mannequins, the economics can work, but the content management and ongoing maintenance capability must be in place before the hardware is.
The more significant opportunity is not customer-facing at all. The most promising use of in-store AI is colleague-facing. Attendees described a future where every team member carries a device that can instantly answer product questions, locate stock and surface recommendations, getting a new starter to the competence of a 15-year veteran within weeks. Employee knowledge is still the single most powerful sale conversion tool in store. No screen can replicate that effect.
The retailers getting this right apply a simple two-question test before any installation: Will this make the customer buy more or behave differently? Will it save colleague time? If the answer to both is no, it does not belong in the store.
2. Checkout: where the experience either holds together or falls apart
Self-checkout (SCO) is a bit like motorway smart lanes: most people accept them, until they don't work. 90% of UK shoppers say they would use self-checkout again, but 62% cite technology failures as their top complaint. Yet adoption figures do not tell the full story.
John Ryan's view on where the balance sits is clear:
"The struggle is one of persuading shoppers that self-checkout really is faster than standing in line. There is also the suspicion that retailers are adopting SCOs to save money on staff. But equally loud are the complaints when prices generally rise. A balance needs to be struck. In the UK, shoppers have an air of resignation about using SCOs, but once familiar with the process, they head for them automatically. In Germany, manned checkouts are generally preferred, with all that this implies in terms of wait times. SCO is better than what preceded it, but things could certainly be better."
Customers value self-scan not primarily for speed, but for budget control. In a cost-sensitive world, they don't want to lose sight of what they're spending.
The room dismissed fully autonomous stores based on the direct business case. The focus has shifted to using computer vision for shrinkage management rather than checkout elimination. Checkout models that remove that visibility may struggle as a result. However, where personalised offers are surfaced during the scan-and-go experience, for instance, recommending discounts on products the customer already buys, conversion and satisfaction rates are strong.
3. What space actually does for a brand
17,349 UK stores closed in 2025, with over 200,000 redundancies across the sector. A store that looks like every other store in the category is not differentiated by being physical. It is just a slower version of online. The retailers building genuine advantage are the ones who have been deliberate about what their store is for and what it isn't.
"A good store today couples a relaxed feel, in which the shopper can feel good about lingering, with the need to maintain sales per sq m. High-density interiors have begun to look old-fashioned and shoppers recognise this. Throwing stock at the shelves is no way forward," John Ryan said. "People buy from people. We still need a very human side to stores."
The room described moving toward collections-based merchandising rather than bulk product presentation. Click-and-collect is creating new opportunities, with marketplace click-and-collect uptake significantly exceeding expectations at one retailer and clear knock-on effects for in-store sales.
Radio Frequency Identification (RFID) emerged as a significant near-term shift, described as life-changing for size and range visibility in fashion - though the cost of tagging at scale remains a barrier.
A long-standing industry benchmark Path Intelligence data shows a 1.3% sales uplift for every 1% improvement in dwell time.
Every square foot should either sell, inspire or serve. If it does none of the three, it should go.
4. Shrinkage, security and violence: a board-level issue
Retail theft is not a new problem. What has changed is the scale, the normalisation of low-level theft and the escalation of violence directed at store colleagues. Shoplifting in England and Wales is at its highest level in more than two decades. This is no longer a loss prevention issue. It has become a workforce safety issue, a property strategy issue, and a growing recruitment crisis.
Retailers deploying security technology have reported measurable results. One retailer recorded a 70% fall in crime at a store using facial recognition, while Poundland reported an 11% reduction in staff violence following a body camera pilot.
Locked cabinets for high-value items are proving more effective than expected, with one retailer reporting a double benefit: reduced theft and improved product availability driving higher sales.
Violence against colleagues outweighs the financial cost of theft as the greatest concern. Body-worn cameras are widespread but do not always prevent confrontation.
Three questions retail leaders should be asking
1. How do you decide which in-store technology improves customer experience versus which simply signals investment?
If you removed it and the customer would not notice, you may be over-invested in the wrong places.
2. What is the right balance between self-checkout automation and staffed service in your store format?
There is a right answer for each format, customer base and basket type. The retailers getting it right are measuring shrinkage and customer satisfaction together, not separately.
3. Can your best store's success be replicated across the rest of your estate?
Most retailers can name their best store. Far fewer can articulate why it outperforms. That gap between best and typical is where significant value sits.
What retail leaders should act on now
Technology and people are not competing priorities, they are interdependent ones. Three things came through clearly from the conversation:
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Prioritise colleague-enabling technology over customer-facing technology. AI on colleague handsets that surfaces product knowledge, stock availability and recommendations will deliver faster ROI than screens on shop floors.
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Treat employee safety as a board-level priority, not an operational cost line. The link between in-store violence, recruitment difficulty and retention is direct and will not be solved by technology alone.
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Accept that a strategy of fewer, better stores may be right. Invest in locations that can genuinely differentiate the brand, and be prepared to exit where safety, shrinkage or format constraints prevent that.
Technology, checkout, space, and brand should not be separate workstreams. The retailers building durable advantage are treating them as one decision. That’s where the work is.
Join the conversation
This is the latest in North Highland's Talking Transformation with Retail Leaders series. Read the insights from our previous event with Natalie Berg.
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