Most UK retailers are still stuck at a basic level of personalisation, despite heavy investment in data and AI, and this gap is now a real risk in an increasingly competitive market. The new Valtech report reveals that brands are testing advanced tools but lack the foundations to deliver seamless, unified, and truly personal shopping experiences.
UK retailers still at ‘basic’ personalisation
New research from Valtech shows that 65% of retailers classify their personalisation as either in “pilot” or “basic” stages, while only 14% describe their capabilities as “advanced” across channels. Even though many are still developing their strategies, just over a third feel confident enough to call their efforts advanced, and only about one in seven says personalisation is fully embedded across all touchpoints.
Most brands still rely on generic tactics such as email campaigns (36%), loyalty programmes (35%), and basic behavioural targeting (34%), with measurement focused on surface metrics like conversion rate (39%), CSAT/NPS (38%), repeat purchases (27%), and customer churn (21%). Retailers admit that these approaches fall short of delivering the kind of real-time, context-aware experiences shoppers now expect.
Data, skills, and cost blocking AI progress
Insiders point to three main barriers holding back advanced personalisation: lack of in-house skills (36%), poor data quality (33%), and high implementation costs (33%). These issues mean that even retailers who are investing heavily can’t always translate technology spend into better customer journeys.
Retailers also cite customer identity consistency (17%), data integration between systems (16%), inventory visibility (12%), and clarity on measurement or ROI (10%) as significant obstacles to delivering unified experiences. This fractured infrastructure leaves many organisations unable to join up data across web, app, and store, limiting the impact of any AI-driven personalisation.
Omnichannel falls short of ‘unified shopping.’
Almost half of retailers (46%) describe their customer experience as “fully unified across all touchpoints”, but more than a third (35%) admit there are still gaps, and 19% are operating with basic, siloed, or separate systems. For shoppers, that often shows up as broken baskets, missed discounts, and in-store teams that do not have real-time stock visibility.
These breaks between store, app, and web do more than annoy customers; they also damage revenue and loyalty as shoppers move to competitors with smoother journeys. Each failed handoff erodes trust, making it harder for brands to justify continued investment in personalisation tools that do not yet feel joined up in practice.
Retailers rush into AI but stay in pilot mode
When it comes to AI, adoption is high: 97% of retailers have either implemented or tested some form of AI, most commonly for chatbots and virtual assistants (51%), product recommendations (48%), and campaign optimisation (47%). The top motivators are improving customer experience and personalisation (45%), boosting operational efficiency and reducing manual work (50%), and cutting costs or optimising resources (31%).
However, nearly half (44%) of those using AI say they struggle to move beyond pilot tests or achieve consistent success. Many blame the same familiar challenges: lack of in-house expertise (36%), poor data quality and governance (33%), high implementation costs (33%), and competing internal priorities (32%), which together stall large-scale rollouts.
Industry voices call for a reset
Retail expert Glynn Davis says, “AI has been touted as the saviour, but without solid foundations, retailers risk pouring even more money into projects without understanding how they’ll deliver value. The real worry here is that AI might be used as a cost-cutting tool rather than a way to genuinely improve shopping experiences.”
Matt Hildon, European Retail Director at Valtech, says “The retail industry is at a crossroads, after decades of digital investment, most brands still struggle to connect data with human behaviour. Shoppers are tired of being treated like transactions. True innovation won’t come from more automation, it’ll come from rebuilding trust and making personalisation genuinely personal.”
