The persistent gap in retail planning transformation

Retail leaders are well aware of today’s challenges: rapidly changing consumer behavior, pricing pressures, and supply chain disruptions. Yet, according to IDC’s recent brief, only 3% of retailers consider their merchandise planning capabilities mature. That’s not just a statistic — it highlights how much room there is for most organizations to elevate their planning practice.

If nearly everyone recognizes the need to improve — but so few feel truly well-prepared — why is that still the case?

Visibility isn’t the same as planning

IDC’s recent study, “Engine of Change: The Digital Imperative Behind Advanced Retail Planning,” reinforces a familiar but important truth: while many retailers have made strides in collecting and visualizing data, far fewer have translated that visibility into effective, cross-functional planning.

Retailers may have the dashboards to spot issues, but those insights are often based on outdated data. Instead of forecasting what’s next, planners are left reviewing what has already happened. Without real-time signals and connected systems, teams struggle to respond quickly and accurately to shifts in their data. Siloed processes, legacy systems, and misaligned business functions make it difficult to turn those insights into coordinated, forward-looking decisions.

The result? Opportunities are missed, inventory gets misallocated, and sales are jeopardized. Instead of maximizing revenue, companies may risk missing their inventory numbers — possibly leading to aggressive markdowns that cut into margins. In today’s volatile retail environment, delayed or disconnected planning can have significant financial consequences.

In their recent study, IDC found that while nearly 46% of retailers report having detailed merchandising planning capabilities, most are still in the early stages of retail planning maturity. Just 3% describe their planning as “advanced,” meaning they’ve adopted integrated, automated systems that provide the flexibility, agility, and scalability needed to support real business outcomes.

These outcomes are significant. IDC’s research shows advanced planning can lead to measurable improvements — up to 9% net sales gains from price optimization in the first year alone, and 5–10% gains in demand planning, with performance compounding over time. As maturity grows, so does the value it returns to the business.

What the 3% are doing differently

Retailers with advanced planning capabilities are unlocking real business value:

• 30% reduction in costs, particularly in inventory and supply chain

• 75% improvement in inventory shrink

• 5–10% uplift in demand planning accuracy

• 40% boost in contextual customer offers

• Increased customer satisfaction, retention, and revenue growth

These data points show that connected, continuous planning makes a quantifiable difference at every level of retail operations.

What’s holding planners back?

According to IDC, the barriers aren’t all technical:

• Siloed data and decision ownership keep teams from working together

• Legacy tools and manual processes can’t support real-time collaboration

• Sunk costs and resistance to change stall planning transformation

• Disconnected workflows mean strategic insights often don’t reach execution

The real issue isn’t a lack of technology — it’s how teams connect data, roles, and decisions. That’s where the other 97% struggle.

Rethinking planning as a strategic capability

In today’s retail environment, planning must operate as a strategic engine for enabling organizational agility, alignment, and growth.

According to IDC, “retailers that understand and enable planning maturity across their business units will be best positioned to respond to and capitalize on changing market dynamics in the years ahead.” 

That’s why Anaplan continues to invest in helping retailers modernize how they plan, forecast, and execute. Named a leader in the 2025 IDC MarketScape for AI-driven Assortment Planning Solutions report earlier this year, Anaplan supports retailers in unifying merchandising, supply chain, and financial planning while enabling AI-driven forecasting, real-time collaboration, and scenario modeling — all within a single connected platform. With the right foundation in place, planning becomes more than a function. It puts you ahead of the other 97%.

Learn how the leading 3% do it

If your organization is still navigating disconnected tools or manual workflows, you’re not alone. But you don’t have to stay stuck. Advanced planning capabilities are no longer out of reach. They are available, proven, and easier to adopt and get started with than ever before.

Join the more than 300 top retailers who use Anaplan to transform planning into a competitive advantage. With the right foundation, your teams can move faster, make smarter decisions, and stay ahead in a changing market.