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Retail Automation Investments Under Scrutiny Amid Cost Pressures
Retailers investing in automation face investor scrutiny as markets assess whether productivity gains justify rising technology costs.
Large retailers accelerating investments in artificial intelligence and automation are coming under sharper investor scrutiny amid rising cost pressures. Companies are deploying AI to optimize supply chains, improve inventory accuracy and enhance the customer analytics. However, significant upfront capital expenditure is weighing on near-term margins. Upcoming quarterly earnings guidance is expected to indicate whether efficiency gains and productivity improvements can justify spending