Retail Tech Weekly: AI Gains, Loyalty Gaps, and Rising Refund Fraud

New research from HyperFinity highlights a significant disconnect between engagement and profit, revealing that 51 leading UK retailers lose a combined £806.9 million annually due to ineffective loyalty schemes. The failure is largely attributed to technical friction and diminishing rewards rather than a lack of consumer interest. Simultaneously, the e-commerce sector faces a growing challenge from 'refundjacking,' with Ravelin reporting that 27% of shoppers now openly admit to exploiting return policies for financial gain.

Despite these headwinds, AI integration continues to deliver measurable results. Kingfisher Group, owner of B&Q and Screwfix, reported a £100 million sales boost through AI-driven personalization and has raised its profit guidance to £635 million. Similarly, Thri5 secured $5.4 million in seed funding to expand its AI execution layer, which helps retailers align store-floor operations with central office data. In the logistics space, physical infrastructure is also evolving; Royal Mail is acquiring 3,000 parcel lockers from Quadient to bolster its out-of-home network, while Asda has partnered with InPost to install 700 lockers across its store estate.