A structural divide has opened in the General Merchandise Sector. The retailers growing fastest in sales and profit are operating on fundamentally different technology foundations than those falling behind. IHL Group’s 2026 retail technology survey makes this divide measurable, and the implications for
mid-market GMS retailers in apparel, mixed goods, and hard goods are urgent.

The gap between Sales and Profit Winners and Laggards is wide, growing, and compounding. Winners (2025 growth 10+ or more in that metric) have unified their data, refreshed their core platforms, and positioned themselves to extract
measurable returns from growing AI investments. Laggards (Flat or negative results for that metric in 2025) are still managing disconnected systems, planning upgrades they have not yet executed, and operating on technology stacks that cannot support the fulfillment expectations their customers
already hold.