SOFIAH NICHOLE SALIVIO

News Editor

Anaplan, Incisiv and World Retail Congress have released a global study on retail resilience and AI adoption, highlighting a clear performance gap between faster-moving retailers and the wider sector.

The study surveyed 298 merchandise planning and supply chain executives across North America and EMEA. It found that leading retailers achieve average full-price sell-through of 71%, compared with an industry average of 57%, with faster responses to demand signals setting stronger performers apart.

Many retailers also believe slow decision-making is costing them sales. Two-thirds of respondents said they lose 3% or more of annual sales because they cannot react quickly enough to shifts in demand, while one-third estimated losses above 6%.

For a retailer with annual revenue of USD $1 billion, that would amount to more than USD $60 million in lost sales. The report linked those losses to long planning cycles: 69% of organisations rebalance inventory monthly or less often, and 78% adjust upstream supply quarterly or more slowly, despite having access to real-time demand signals.

“Our research shows that the organisations pulling ahead have restructured accountability and given systems the authority to act. The performance gap between them and the rest of the industry is now measurable in full-price revenue – and it is growing,” said Gaurav Pant, Chief Insights Officer at Incisiv.

AI readiness

The research also highlights a gap between interest in AI and its use in day-to-day retail planning. More than 85% of executives rated AI as critical across retail functions, yet deployment remained much lower.

Only 31% of respondents had deployed AI in demand forecasting, while just 13% had introduced it in exception management, where faster decision-making can have a direct operational impact. The report described this as a 60-percentage-point gap between perceived importance and adoption.

Workforce preparation emerged as another weak point. Executives said more than half of supply chain and merchandise planning roles would require materially different skills by 2030, but only 11% of teams have received any AI training so far.

The study warned that poor preparation could create two problems inside organisations: staff may reject AI outputs because they do not trust them, or accept them without enough judgement to recognise when the system is wrong.

“This research makes clear that the competitive divide in global retail is no longer about who has the best forecast. It is about who can turn insight into action fastest – and that requires a fundamentally different operating model,” said Ian McGarrigle, Chairman of World Retail Congress.

Leaders pull ahead

The report grouped respondents by operational maturity and identified a top 10% tier as leaders. These retailers were more likely to update plans quickly, align teams around common incentives and embed AI more directly in decision-making.

Among that group, 90% refresh demand forecasts weekly or in real time. By contrast, around two-thirds of the wider industry still operate on monthly or quarterly forecasting cycles.

The same pattern appeared in organisational design. According to the survey, 24% of leaders had unified cross-functional incentives, five times the industry average.

AI use in decision-making also differed sharply. The study found that 76% of leaders operate at system-recommended or autonomous AI decision levels, while none rely on fully manual processes.

This suggests the gap is not simply about access to software, but about how companies organise decisions and act on information. The findings indicate that retailers that can shorten planning cycles and connect insight to execution are better placed to protect margins and reduce lost sales.

“The retailers in this study who are winning have moved from just looking at data to acting on it. They are turning analytical noise into precise action by using AI-driven tools that bring purpose-built functionality and deep expertise into their core planning workflows. This connection between insight and execution is what enables them to make informed, confident decisions at the moment they matter, and it’s what truly separates the leaders from the rest,” said EJ Tavella, EVP and GM of Integrated Business Applications at Anaplan.

Respondents represented businesses with annual revenue ranging from USD $250 million to more than USD $5 billion. More than half were based in North America, with the remainder in EMEA. The study assessed supply chain maturity through a 15-question index covering cross-functional integration, responsiveness, technology and AI infrastructure, and organisational adaptability.

The supermarket has expanded its Aldi Price Match scheme into more than 2,000 Tesco Express stores, meaning customers can now pick up key items at prices matched to Aldi without heading to a larger supermarket.

It marks the biggest expansion of the scheme since it launched in 2020, and is aimed at helping households manage rising costs while keeping the convenience of local shopping.

More than 200 products will be included, with items clearly marked in-store so shoppers can easily spot the deals.

Examples of price-matched products include:

• Tesco Penne Pasta Quills 500g – £0.69
• Tesco British Semi-Skimmed Milk (2 pints) – £1.20
• Tesco Iceberg Lettuce – £0.89
• Tesco Cauliflower – £1.19
• Tesco Broccoli 375g – £0.82
• Tesco Tuna Chunks in Spring Water 145g – £0.65
• Tesco Basmati Rice 1kg – £1.79
• Tesco Loose Red Peppers – £0.70
• Tesco Red Kidney Beans 400g – £0.39

The exact range will vary depending on store size and location, but all included items will feature the Aldi Price Match label on shelves.

Tesco UK chief executive Ashwin Prasad said the move is designed to give shoppers confidence they are getting good value, even in smaller convenience stores.

He said: “We know that household budgets are again under pressure, but we are committed to keeping the cost of the weekly food shop affordable for Tesco customers.

“By extending our Aldi Price Match scheme to Express stores we can now give customers the confidence that they can get great prices on a range of everyday products at Tesco, whether that’s in our large stores, online or in more than 2,000 of our local convenience stores.”

SOFIAH NICHOLE SALIVIO

News Editor

UK credit card balances were stable in February, while payment rates fell, according to FICO. The data also showed higher balances on accounts with missed payments than a year earlier.

Spending rose 5.1% month on month to an average of £790, reflecting the usual rebound after January’s post-Christmas slowdown. Average active balances were unchanged at £1,940, although they were 4.5% higher than in February 2025.

The share of total balances repaid fell 1.53% from the previous month to 33.4%. That was 4.3% lower than a year earlier, though the decline was narrower than in recent months, when annual falls had been running between 6% and 7%.

Missed-payment trends were mixed. The number of customers missing one payment fell 12% from the previous month, while those missing two payments dropped 8.9%.

However, the proportion missing three payments rose 2% month on month and 8% year on year, pointing to continued strain among borrowers already in difficulty. Compared with the same month last year, fewer customers missed one payment, but more missed two and three, extending a pattern seen since the second half of 2025.

Balances tied to missed payments rose across every category, both month on month and year on year. They remained well above 2025 levels, suggesting customers who have fallen behind are carrying larger debts than a year ago.

Affordability pressure

The figures suggest that while some broad measures of card use are stabilising, affordability pressures have not eased for many households. Structural financial strain remains despite a pause in the year-on-year decline in spending seen since early 2025.

FICO also warned that higher energy prices could add pressure in the months ahead, particularly as seasonal spending typically rises through spring. It said lenders’ risk teams should closely monitor borrowers with stretched finances.

Credit limits were flat on the month at £5,940 and 2.4% higher than a year earlier. Overlimit accounts fell 3.7% from the previous month, but were still 6.5% above February 2025 levels.

The average amount by which customers exceeded their limit rose 2.1% month on month to £95, and was 5.5% higher than a year earlier.

Seasonal pattern

February is typically a month when spending recovers after January and repayment rates begin to soften before falling further into April. The latest figures broadly followed that seasonal pattern, but also pointed to more severe underlying borrower stress than in previous years.

FICO’s benchmark figures are drawn from client reports generated by its TRIAD Customer Manager system, used by around 80% of UK card issuers. That gives the dataset broad coverage of the domestic credit card market.

For lenders, the combination of stable balances, lower repayment rates and larger debts among delinquent customers is likely to sharpen the focus on early intervention. Pre-delinquency action and tailored collections strategies are especially important for higher-balance accounts, FICO said.

The latest numbers suggest a divide in the market between customers still managing seasonal swings in spending and those whose financial position is worsening as debts accumulate. “While February saw month-on-month improvements for accounts missing one and two payments, there was a 2% increase in accounts missing three payments, underlining the challenge for individuals already facing financial difficulties,” FICO said.