UK consumers are missing out on personalised shopping experiences as retailers admit they are still stuck doing the basics, and, despite recognising how to fix it, data and integration challenges continue to blight their efforts.
That is according to Valtech’s “Retail at the Crossroads” report, based on a survey of 700 senior executives at the world’s largest retailers, which reveals many organisations acknowledge they are still working to unlock the full potential of personalisation.
Figures show that although most retailers continue to develop their personalisation offers and strategies, just over a third describe their efforts as “advanced”.
In fact, only one in seven has fully embedded it across all their channels and touchpoints. Most continue to rely on email campaigns (36%), loyalty programmes (35%), and basic behavioural targeting (34%), while at the same time, measurement practices remain surface-level: 39% track conversion rate improvements, 38% monitor customer satisfaction and net promoter scores, 27% measure repeat purchases, and only 21% track customer churn.
Retailinsider.com founder Glynn Davis said: “Retailers have pumped millions into personalising customer experiences through technology, but this research suggests progress remains questionable. At the heart of any personalisation is data and insights that provide people with experiences which feel personal – yet, many continue to struggle with poor datasets and a lack of in-house expertise.”
The data confirms that even among large, digitally mature retailers, delivering a seamless omnichannel experience remains a challenge.
While 46% describe their customer experience offering as “fully unified across all touchpoints,” 35% admit “gaps exist” in integration, and 19% still operate with “basic, siloed or entirely independent systems”.
When asked about potential challenges, 96% reported at least one significant obstacle, with the most common being customer identity consistency (17%), data integration between systems (16%), inventory visibility (12%), and measurement or ROI clarity (10%).
This, the report maintains, exposes deep flaws in how retailers manage and deploy customer experiences. For shoppers, this translates into common frustrations, such as malfunctioning shopping baskets, missed discounts, and store assistants who are unaware of stock levels.
On the other hand, this disconnect not only frustrates shoppers but also affects retailers’ revenues. Each missed handoff between store, app, and web erodes trust and drives customers toward bigger, better competitors who have perfected their omnichannel delivery.
When it comes to AI, the data shows widespread adoption among retailers. Almost all (97%) have implemented or tested AI in some form, mostly using it to deploy chatbots and virtual assistants (51%), offer product recommendations (48%), or optimise campaigns (47%).
The top motivators for adopting AI are split between enhancing customer experience/personalisation (45%), improving operational efficiency/reducing manual work (50%), and reducing costs/optimising resources (31%).
Yet despite all this, progress remains limited. Nearly half (44%) of those who have implemented or tested AI say they have struggled to move beyond pilot phases or achieve consistent success.
Retailers blame a lack of in-house expertise (36%), poor data quality/governance (33%), high implementation costs (33%), and competing internal priorities (32%).
Davis added: “AI has been touted as the saviour, but without solid foundations, retailers risk pouring even more money into projects without understanding how they’ll deliver value. The real worry here is that AI might be used as a cost-cutting tool rather than a way to genuinely improve shopping experiences.”
Despite many retailers claiming advanced personalisation capabilities, the study shows that only a small percentage can do it intelligently, in real-time, and across all channels.
After years and millions of investment in technologies, it is clear that brands are discovering just how complex personalisation really is, the report claims.
Valtech European retail director Matt Hildon said: “The retail industry is at a crossroads. After decades of digital investment, most brands still struggle to connect data with human behaviour. Shoppers are tired of being treated like transactions. True innovation won’t come from more automation, it’ll come from rebuilding trust and making personalisation genuinely personal.”
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