Two thirds of retail executives say it is becoming more difficult for employees to identify real threats as AI increases complexity of threats
November 13, 2025 – LevelBlue, the world’s largest pure-play provider of managed security services, has released its 2025 Spotlight Report: Aligning Cyber Resilience and Business Goals in Retail. The report explores how the retail industry is building a proactive stance in protecting itself from increasingly sophisticated attacks. Amid pressure to integrate AI-powered personalised shopping experiences, expand into third-party marketplace platforms, or pursue new revenue streams through re-commerce models, retailers face the challenge of establishing cyber resilience at a time when the threat landscape is intensifying.
As the threat landscape rapidly evolves, retailers are facing substantial attacks. The report reveals 44 per cent of retailers say they are experiencing a significantly higher volume of attacks and 34 per cent say their organisation has suffered a breach in the past 12 months. While many retailers are aware of new threats they may face, many of them remain unprepared, especially when it comes to AI-powered attacks, deepfakes, and synthetic identity attacks. Specifically, only 25 per cent say they are prepared for AI-powered threats, even though 45 per cent expect them to happen, and 33 per cent say they are prepared for deepfake attacks, even though 44 per cent expect them to happen.
Beyond AI and deepfakes, supply chain security remains a major challenge. Nearly half (47 per cent) of executives say they have very low to moderate visibility into their software supply chain, and only 22 per cent say that engaging with suppliers about their security credentials is a top three priority in the next 12 months.
As a result of these increasing threats, retailers are forced to take cybersecurity more seriously and make cyber resilience a priority. 67 per cent of executives reporting high-profile breaches have pushed cybersecurity up the C-suite agenda, and executives say that increasing boardroom engagement in cyber-resilience discussions will be a top five priority for the next 12 months.
Kory Daniels, Chief Security and Trust Officer, LevelBlue, said, “Criminal activity and nation state-backed actors are leveraging AI to increase the sophistication, volume, and success of their attacks. It is imperative for businesses to adopt a resilience-by-design playbook to have success defending their clients, suppliers, and organisational data.
“Retailers’ success requires the trust of consumers and suppliers, and there is still an opportunity for organisations to close critical gaps. While many organisations are taking proactive steps, challenges indicate the need for ongoing investments and continued cyber-resilient culture to be effective in an evolving threat landscape.”
The report reveals additional indicators of retailers proactively focusing on improving cybersecurity measures including:
- 60 per cent of executives say their cybersecurity team is integrated with lines of business.
- 51 per cent say that leadership roles in their organisation are measured against cybersecurity performance indicators.
- 44 per cent say they have effectively aligned business risk appetites with cybersecurity risk management.
- 40 per cent say they have an effective company-wide cybersecurity culture.
Additionally, retailers say they are most likely to invest significantly in the following areas to prepare for evolving threats:
- Application security (66 per cent).
- Cyber-resilience processes across the business (65 per cent).
- Generative AI for social engineering attacks (63 per cent).
- Machine learning for pattern matching (63 per cent).
Based on these findings, LevelBlue recommends four specific steps for retailers to achieve a future of cyber resilience: push cyber resilience up the organisation, embed cybersecurity responsibilities throughout the organisation, be proactive (not reactive), and prioritise resilience in the software supply chain.
This means integrating cyber-resilience considerations with business decisions at the highest level, fostering a cyber-resilient culture across the entire organisation, investing in cybersecurity measures to get ahead of risks, such as advanced threat detection and response and exposure and vulnerability management technologies, and mandating transparency of suppliers’ cybersecurity credentials to help identify potential threats in the software supply chain.
Download the complete findings of the 2025 LevelBlue Spotlight Report: Aligning Cyber Resilience and Business Goals in Retail here to learn how retailers are adapting to the changing threat landscape.
For more information on LevelBlue and its managed security, consulting, and threat intelligence services, please visit www.levelblue.com.
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Methodology
The research is based on a quantitative survey that was carried out by FT Longitude in January 2025. 1,500 C-suite and senior executives across 14 countries and seven specific industries: energy and utilities, financial services, healthcare, manufacturing, retail, transportation, US state and local government, and higher education (US SLED).
About LevelBlue
LevelBlue reduces risk and builds lasting resilience so organisations can innovate and advance their mission with confidence. As the world’s most analyst-recognised and largest pure-play managed security services provider, LevelBlue elevates client outcomes that matter: stronger defence, faster response, and sustained business continuity. LevelBlue combines AI-powered security operations, advanced threat intelligence, and elite human expertise to provide the most comprehensive portfolio of strategic advisory, managed security, offensive security, and incident response services.
Learn more at levelblue.com.
