AI innovation and omnichannel are critical to retail success in 2026

Rhea-AI Summary

Kyndryl (NYSE: KD) on Jan 12, 2026 released the 2025 Retail Readiness Report showing retailers balancing AI and digital transformation with operational constraints across a $30 trillion global market. The report finds 48% of retail leaders upgraded IT and AI investments rose 33% year-over-year, while nearly 25% cite technical debt and ~one-third report mission-critical infrastructure at end-of-service. With >80% of retail sales in physical stores, the report emphasizes system unification, inventory precision, and governed agentic AI as priorities to achieve omnichannel readiness.

Positive

• AI investments increased by 33% in the past 12 months
• 48% of retail leaders significantly upgraded IT infrastructure

Negative

• Only 15% of leaders use omnichannel systems to full potential
• Nearly 25% of retailers cite technical debt as a major constraint
• Almost 1/3 report mission-critical networks, storage, servers at end-of-service
• Only 33% of leaders express concern about upskilling for AI-driven roles

News Market Reaction – KD

+0.33%

1 alert

+0.33% News Effect

On the day this news was published, KD gained 0.33%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Global retail market size: $30 trillion Leaders upgrading IT: 48% AI investment increase: 33% +4 more

7 metrics

Global retail market size $30 trillion Size of global retail market cited in 2025 Retail Readiness Report

Leaders upgrading IT 48% Retail leaders that significantly upgraded IT infrastructure in past 12 months

AI investment increase 33% Increase in AI investments by retail leaders in past 12 months

Brick-and-mortar share more than 80% Share of retail sales still occurring in physical stores

Omnichannel full use 15% Retail leaders who believe they use omnichannel systems to full potential

AI job transformation view 89% Retail leaders who believe AI will completely transform job roles within 12 months

Upskilling concern 33% Retail leaders concerned about upskilling employees affected by AI

Market Reality Check

Price: $11.65 Vol: Volume 1,956,922 vs 20-da...

normal vol

$11.65 Last Close

Volume Volume 1,956,922 vs 20-day avg 1,908,640 (relative volume 1.03) ahead of this AI-focused report. normal

Technical Shares at $27.25, trading below 200-day MA of $32.32 and 38.35% under the 52-week high.

Peers on Argus

KD slipped 0.04% with mixed peer action: G (+0.67%), EXLS (+0.23%), PSN (+2.03%)...

KD slipped 0.04% with mixed peer action: G (+0.67%), EXLS (+0.23%), PSN (+2.03%), GDS (+0.39%) and EPAM (-3.67%). No broad sector momentum flagged.

Historical Context

5 past events · Latest: Jan 06 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 06	Leadership transition	Neutral	+1.8%	Planned CHRO retirement with named successor and advisory transition period.
Dec 16	AI recognition	Positive	-0.1%	Named Leader in ISG report for agentic and generative AI capabilities.
Dec 11	Security service launch	Positive	-1.1%	Launch of Quantum Safe Assessment for post-quantum cryptography readiness.
Nov 24	AI product launch	Positive	-0.6%	Launch of agentic AI mainframe services and Agentic AI Framework for IBM z/OS.
Nov 20	Partnership renewal	Positive	+0.6%	Three-year renewal with Vodafone Idea to transform IT operations and resilience.

Pattern Detected

Recent AI and security launches have often seen negative next-day moves despite strategically positive narratives, while select partnership and leadership items saw modest gains.

Recent Company History

Over the last few months, Kyndryl has focused on AI frameworks, security, and strategic partnerships. In November 2025, it extended a three-year partnership with Vodafone Idea and launched a Quantum Safe Assessment service. Multiple AI-related announcements followed, including agentic AI services and leadership recognition in ISG’s 2025 report, often met with small negative price reactions. A January 2026 CHRO succession update drew a mild positive move. Today’s retail-focused AI Readiness Report continues this theme of positioning Kyndryl around AI-driven transformation and operational discipline.

Market Pulse Summary

This announcement underscores Kyndryl’s AI and readiness narrative, highlighting a $30 trillion reta...

Analysis

This announcement underscores Kyndryl’s AI and readiness narrative, highlighting a $30 trillion retail market where over 80% of sales remain in-store and only 15% of leaders fully leverage omnichannel systems. It reinforces themes from prior AI and readiness reports, now focused on retail operational discipline and agentic AI adoption. Investors may watch how these insights translate into concrete services, customer wins, and future financial results alongside existing contract backlogs and AI offerings.

Key Terms

omnichannel, agentic AI, technical debt

3 terms

omnichannel technical

"retailers are realizing that omnichannel success depends less on adding new capabilities"

A coordinated approach to selling and serving customers across all touchpoints—stores, websites, mobile apps, social media, and call centers—so the experience feels like one continuous conversation no matter where a customer interacts. For investors, omnichannel capability signals how well a company can attract and keep customers, turn interactions into sales, and use shared customer data to cut costs and boost revenue—making it a key driver of growth and competitive strength.

agentic AI technical

"deploying responsible agentic AI, will set the pace for the future."

Agentic AI refers to computer systems that can make their own decisions and take actions without needing someone to tell them what to do each time. It's like giving a robot a degree of independence to solve problems or achieve goals on its own, which matters because it could change how we work and interact with technology in everyday life.

technical debt technical

"nearly a quarter cite technical debt as a major constraint."

Technical debt is the extra work and cost a company incurs when it chooses quick, imperfect software or system fixes instead of doing a more thorough job now. Like patching a leaky roof instead of replacing it, those shortcuts can slow product development, raise maintenance bills, increase outage and security risk, and reduce a company’s ability to grow—factors investors watch because they can lower profits and company value over time.

AI-generated analysis. Not financial advice.

Kyndryl Readiness Report reveals that retailers that prioritize operational fundamentals and technology integration will be ready to deliver seamless customer experiences

NEW YORK, Jan. 12, 2026 /PRNewswire/ -- Kyndryl (NYSE: KD), a leading provider of mission-critical enterprise technology services, today released findings from its 2025 Retail Readiness Report.  The report reveals how retailers are balancing ambitious AI and digital transformation initiatives with pressing operational challenges amid a $30 trillion global market where physical stores remain critical to success.

The retail industry report shows that while 48% of retail leaders have significantly upgraded their IT infrastructure and increased their AI investments by 33% in the past 12 months, nearly a quarter cite technical debt as a major constraint. With more than 80% of retail sales still occurring through brick-and-mortar stores, retailers are realizing that omnichannel success depends less on adding new capabilities and more on operational discipline and system unification.

"Retail is entering a critical era where every technology investment must prove its value," said Rachel Calhoun, Global Vice President for Retail at Kyndryl. "Retailers have spent years layering new technology atop legacy systems, but this next year demands a shift from expansion to integration. Those that balance physical operations with digital intelligence, while deploying responsible agentic AI, will set the pace for the future."

Key findings from the Retail Readiness Report:

• Back to basics will define competitive advantage in retail – The majority of sales remain in-store, so retailers are shifting focus to inventory precision, stock-keeping units rationalization, and store-level agility.
• Omnichannel systems need urgent integration – Only 15% of retail leaders believe they use their omnichannel systems to full potential, with the rest hampered by fragmented digital add-ons and manual workflows.
• Overcoming barriers to agentic AI adoption – While retail leaders have increased their AI investments, progress is blocked by data silos and organizational resistance. Success requires embedding AI frameworks that operate autonomously within clear governance structures.
• Technical debt threatens innovation – Nearly one-third of retail leaders report mission-critical networks, storage and servers are at end-of-service. Nearly half say innovation is delayed by foundational tech-stack issues.
• Retail industry workforce transformation is accelerating – 89% of retail leaders believe AI will completely transform retail industry job roles within the next 12 months, yet only 33% express concern about upskilling employees whose roles are affected by AI.

For more insights, view the full 2025 Retail Readiness Report.

About Kyndryl
Kyndryl (NYSE: KD) is a leading provider of mission-critical enterprise technology services, offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world's largest IT infrastructure services provider, the company designs, builds, manages and modernizes the complex information systems that the world depends on every day. For more information, visit www.kyndryl.com.

Kyndryl Press Contact
press@kyndryl.com

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/ai-innovation-and-omnichannel-are-critical-to-retail-success-in-2026-302657835.html

SOURCE Kyndryl

FAQ

What did Kyndryl (KD) report about retail AI investment trends in 2025?

The report finds retail AI investments rose by 33% in the past 12 months.

How much of retail sales remain in physical stores according to Kyndryl's 2025 report?

The report states that more than 80% of retail sales still occur in brick-and-mortar stores.

What operational issues did Kyndryl (KD) highlight that impede omnichannel success?

Key issues include fragmented digital add-ons, manual workflows, and only 15% adoption of omnichannel systems.

How does technical debt feature in Kyndryl's Retail Readiness Report (Jan 12, 2026)?

Nearly one-quarter cite technical debt as a major constraint and ~one-third report end-of-service infrastructure.

What workforce risks did Kyndryl identify for retailers (KD) over the next 12 months?

The report says 89% of retail leaders expect AI to transform roles within 12 months, yet only 33% are concerned about upskilling.