Could Better Connectivity Stop Revenue Losses In UK Retail?

Patchworks released new figures showing how broken connections across retail tech stacks are draining money and time. The company commissioned OnePoll to survey 200 senior retail decision makers for the Retail Integration Report: Insights from the 2025/26 Patchworks Retail Tech Leaders Survey. The study found that 60% of UK retailers lose money each year because their systems fail to work together. 1 in 10 said they lose more than £1 million every year, while 48% said the losses fall above £50,000. Another 14% said the losses reach beyond £500,000.

The problems cut deeper during busy sales periods. Patchworks said 31% experience direct revenue losses during events such as Black Friday. The study also found that 39% of retail teams spend more time fixing connection problems than working on sales growth. Nearly 58% fear that poor performance across their systems could harm their reputation with shoppers, adding more pressure during seasonal peaks.

Daily warning signs are also there as frequent order errors were flagged by 23% of respondents, while 20% pointed to weak customer experience. Point of Sale systems cause the most trouble at 34%, followed by CRM at 32% and ecommerce platforms at 27%. Patchworks said these weak spots force teams to spend hours bridging gaps manually, creating more room for delays and mistakes.

How Do Retailers View Their Current Level Of Connection?

Only 27% of retailers described their operation as fully connected and scalable. Patchworks said nearly a third sit in a reactive stage, where small links exist but break often, while another third still work in fragmented conditions with little contact between systems. This makes daily work harder and blocks teams from improving how orders, stock and customer data flow across the organisation.

Tech leaders quoted in the wider report echoed the same frustrations. Mark Lee from Bentley Gift said the business still works in silos and has to manage rule limits within systems. Paula Abasolo from Mint Velvet said her business faces growing complexity as more tech has been added over time. Others, such as David Webster from Bollin Group, said progress is possible once teams gain more control over their integrations, though it takes time to replace older methods.

Paula Abasolo added: “As we removed silo systems and enhanced integration, orchestration of processes has helped reduce friction and errors. We now have more control over BAU, less maintenance costs, ease of continuous integrations. Our previous integration layer was like a ’black box’ to us-everything had to be handled by the vendor with no visibility. With iPaaS, its dashboard and direct access to a team, time to market on change requests and cost has greatly improved.”

Also interviewed in the report, David Webster, Head of B2C at Bollin Group commented: “We are seeing more reliability in the fulfillment integration. This means ops and CS teams can work with complete information, and customers get swifter responses as a result. We’re not 100% there yet but knowing our integrations are robust and capable ahead of scaling was always a foundational issue. iPaaS has saved us time and money and given us more control over our own destiny.”

Retailers also face extra strain when systems crack under pressure. Patchworks said 40% worry their setup could reach breaking point during heavy trading. Nearly half said they rely on temporary workarounds to get through peak periods. The survey showed that 42% lose sleep during busy seasons because they fear downtime, and 31% experience measurable losses during those periods.

How Are Retailers Trying To Fix These Problems?

The survey found that 31% still depend on custom integrations that demand costly development work. A further 20% use plug-ins that cannot adjust well between platforms. Another 18% use manual coding. Only 13% have adopted an Integration Platform as a Service, known as iPaaS, which Patchworks said leads to faster integration, fewer errors and lower running costs. 11% have no actual method at all.

Jim Herbert, CEO of Patchworks, said integration can no longer be dismissed as an operational detail. “Integration has long been thought of as background tech but really it’s the profit engine behind every transaction. When systems don’t talk to each other, retailers lose visibility, speed and ultimately revenue. As commerce becomes more connected and AI-driven, fixing these gaps becomes absolutely essential.

“Many retailers are still held back by fragmented systems, siloed operations and legacy processes that drain resources and slow growth. CTO’s in particular are locked into repeated ‘build’ cycles that fail to deliver the scalable connectivity they need to optimise operational performance and accommodate future services.”

Retailers choosing between different options ranked flexibility across systems as their top priority at 48%. Long term cost reduction came next at 38%, followed by real time visibility at 35%. These figures show that retail teams want smoother movement of data above everything else so they can manage stock, orders and customer interactions without delay.

Patchworks said iPaaS users report quicker reaction times during busy periods, clearer visibility, and fewer manual fixes. Leaders quoted in the report said the switch helped them deal with sudden spikes in orders and gave them more control over daily work inside their tech stack. This, in turn, helped teams handle fulfilment with better accuracy and faster responses to customers.

Are Retailers Prepared For The Next Stage Of Automation?

Patchworks said the next stage of online retail is Agentic Commerce. This model uses autonomous AI agents to handle product searches, comparisons, orders and payments. The company said these systems depend on strong integration underneath, as the agents need uninterrupted access to data across sales, stock and customer channels. Without a connected base, the automation cannot operate smoothly.

The report said Agentic Commerce is already beginning to appear as AI tools take on more tasks for consumers. Deloitte forecast that 25% of enterprises using GenAI will bring these agents into their operations. Patchworks said retailers that strengthen their connections now will be better placed to handle this shift once it becomes more common.

Herbert said the message for retail leaders is simple. “Retailers can’t afford to leave integration in the shadows. Every minute spent patching systems or fixing errors is time and money lost. Integration belongs at the boardroom table because when systems connect, profits follow.”