22 January | February 2026 abasto.com TECHNOLGY FOCUS BY ABASTO R etailers worldwide face a silent enemy eroding their mar- gins: inventory distortion. According to The Revenue Imperative for Modern Retail report by IHL Group, losses from out-of-stock items, overstocking or misplaced merchandise now reach $1.73 trillion annually. The report warns that traditional systems cannot REDEFINES RETAIL PROFITABILITY Global losses from inventory errors top $1.7 trillion annually keep pace with the demands of omnichannel commerce, where lack of accuracy li- mits profitability. The industry is embra- cing a clear solution: smart shelving. Shelf Technology Evolution The smart shelf combines sensors, computer vision, artificial intelligence and hybrid data capture to mo- nitor shelves in real time. What once seemed ex- perimental has become an essential operational tool. The study found that hi- gher-performing retailers prioritize inventory visibi- lity 208% more than lag- gards and are 136% more likely to adopt hybrid data capture systems. Data should prompt every retail executive to rethink their technology roadmap immediately.. IHL Group Key Features of Smart Shelving Continuous shelf monitoring Automatic out-of-stock alerts Planogram optimization Integration with mobile systems Hybrid data capture Omnichannel Increases The Pressure Out-of-stock items remain the biggest headache. When cus- tomers cant find a product, they simply shop elsewhere. IHL reports that the ave- rage consumer abandons a retailer after 2.5 to 3 out-of- stock experiences. The ur- gency is even higher among Prime users: 73% make an immediate purchase at ano- ther store via mobile. Continues on page 24 SMART SHELVING