What: Industry leaders and VCs predict robots will transform retail operations within a decade, from warehouse automation to customer service, with China and the US leading the technological revolution.

Why it is important: With retailers currently losing 4.5% of gross sales due to operational inefficiencies and 71% of employees already using AI tools weekly, the integration of robotics technology will be fundamental to addressing both labour challenges and operational bottlenecks.

The robotics industry stands at the cusp of a transformative decade, with investors and founders envisioning widespread adoption across retail operations. Leading voices in the field predict that robots will soon handle tasks ranging from basic warehouse operations to complex customer interactions. Chinese companies are driving cost reduction in hardware development, making automation more accessible to retailers of all sizes. The evolution extends beyond simple task automation, with emotionally intelligent robots being developed for customer service and personalised shopping experiences. While the US and China are expected to dominate this technological revolution, European companies maintain strength in industrial applications. The integration of AI with robotics is creating more sophisticated systems capable of learning and adapting to complex retail environments. However, the industry faces challenges in balancing automation with human interaction, particularly in customer-facing roles. The article emphasises that robots will serve as tools rather than replacements, augmenting human capabilities while addressing critical labour shortages in the retail sector.

IADS Notes: The retail industry's evolution towards robotics aligns closely with recent market developments. In March 2025, retailers achieved a remarkable 4.5% annual productivity growth through strategic automation, validating predictions about robots' role in enhancing operational efficiency. This transformation is already visible in warehouse operations, where Verity's AI-powered drones demonstrated in February 2025 how 24/7 robotic operations can eliminate 98% of operational errors. However, the human element remains crucial, as January 2025 data revealed that while 71% of retail employees use AI tools weekly, only 36% feel adequately prepared for technology integration. The success story of Intime Department Store in July 2024, achieving a 15% boost in counter sales through human-robot collaboration, demonstrates how robots can effectively complement human workers in retail operations.

What the robotics industry will look like in 10 years, according to founders and VCs