Zagreb, April 25, 2025 – According to a new KPMG study, retail leaders who successfully leverage both internal and external data and systematically apply data analytics achieve up to 15% higher revenue growth and up to 12% greater profitability compared to their competitors. However, despite increasing investments in analytics and digital tools, 68% of surveyed companies admit they lack a clear data strategy. Data fragmentation and disconnected systems remain among the key challenges limiting transformation in the sector.
The Challenge of Data Overload
The retail sector is undergoing significant transformation, driven by rapid technological advancements and evolving consumer expectations. Today’s customers demand personalized and seamless shopping experiences across all channels, placing pressure on retailers to not only understand but also anticipate their needs. At the same time, fragmented data ecosystems and the growing volume and velocity of data generation present major challenges.
Analyzing the study, KPMG experts highlight that retailers today collect vast amounts of data—from transactional information, shopping patterns, and social media engagement to loyalty program data. However, only 52% of surveyed retailers believe they can effectively use this data to make strategic decisions. Additionally, 40% report lacking tools for real-time data analysis, resulting in inefficient processes and missed sales opportunities.
How Data Can Boost Sales and Improve Inventory Management
Data analytics can significantly enhance the following key business areas:
Personalized Customer Experience – Companies that use data to personalize offers achieve up to 20% higher repeat purchase rates.
Supply Chain Efficiency – Predictive analytics can reduce excess inventory by 30% and improve demand forecasting accuracy.
Smart Pricing Strategies – Dynamic pricing models can increase revenue by 5–10%, optimizing prices based on market trends and consumer behavior.
Digitalization Challenges in the Retail Sector
Analyzing the research findings, Daniel Lenardić, Partner in the Advisory Department at KPMG Croatia, part of the KPMG Adria cluster (including KPMG offices in Croatia, Bosnia and Herzegovina, and Slovenia), emphasizes the importance of data integration to ensure continuous growth and development in the sector:
“The era when companies could rely on linear growth and occasional price adjustments is behind us. Today, retailers that fail to integrate data into their business processes fall behind competitors who use analytics to manage supply chains agilely, personalize customer experiences, and optimize pricing. Our analysis shows that leading companies in the sector are already achieving tangible financial results thanks to modern data strategies.”
Lenardić also stresses the need to invest in tools that enable unified tracking of data across all sales channels—online, offline, social media, loyalty programs, and external sources (market analysis, competitor data, etc.).
“Without such integration, companies miss valuable opportunities and make decisions based on incomplete information, which can have significant consequences for long-term profitability.”
Further analyzing the domestic market, Matej Samardžić, Manager in the Advisory Department at KPMG Croatia, part of the KPMG Adria cluster, warns that many Croatian companies still rely on outdated operational models and fail to fully utilize the potential of data:
“Although data is an extremely valuable resource, its practical application is often hindered by disconnected systems, diverse information sources, and the lack of a unified data management strategy. Our experience shows that many companies still analyze data manually, often exclusively through MS Excel, or use it only in fragmented ways without clear alignment with business goals. This approach limits strategic decision-making and reduces the potential of data to create competitive advantage.”
Samardžić adds that the introduction of automation and artificial intelligence in data analysis has become a necessity:
“Companies that rely solely on historical data and manual processes to forecast trends are already losing market share. Predictive analytics, which enables inventory optimization, price adjustments, and enhanced customer experience, must become a standard in the sector.”
Conclusion
A clear data strategy is not just a technological initiative—it must become a core business strategy for every retail company aiming to remain competitive in the digital age. Companies that fail to invest in data strategy risk stagnation and loss of market share, while those that implement advanced analytics tools gain measurable benefits through operational optimization, increased customer loyalty, and long-term sustainability.