"Buy online, pickup in store" has become an increasingly popular strategy for retailers looking to reduce delivery costs. But a new study reveals it isn't working as well as the store owners hope.

Alexi Agratchev was working on a video securitysystem to help casinos catch criminals, as part of an internal start-up at Cisco Systems, when an idea popped into his head. He wanted to apply the same concept – extracting data from technology such as video cameras – to help retailers better serve their customers and drive sales in stores.

Walmart has been privately testing drones inside facilities and is now seeking permission from federal regulators to test them outdoors for various uses, including home delivery.

Retailers with strong omnichannel initiatives stand to capture market share as consumers take advantage of in-store pickup and inventory look-up.