StartArticlesArtificial intelligence, a great vector of transformation of modern retail

Artificial intelligence, a great vector of transformation of modern retail

NRF 2025 Big Show, held in New York, reaffirmed its relevance as the main global stage for discussion of the trends and innovations that shape global retail. During the days 12,13 and 14 January, executives, CEOs and industry leaders shared their strategies, challenges and visions that are redefining the market. From the perspective of leadership in retail and franchising, I explore, next, learnings and cases that stood out in the global event and lessons that can impact retail in the long term.

Artificial intelligence (AI) remains the driving force behind the transformation in retail, with companies like Amazon and Walmart demonstrating how AI is being used to revolutionize processes, improve customer experience and optimize operations.

At Amazon, AI is integrated on different fronts, from the conversational shopping assistant Rufus, which answers complex consumer questions, to logistics enhanced by mobile robots and analytics systems that highlight the main pros and cons of products. Already at Walmart, partnerships with technology companies such as NVIDIA are enabling the use of digital twins to predict demands, optimize inventories and even simulate store layouts.Efficiency is not only operational, but also strategic, creating smarter and connected stores.

This comprehensive use of AI positions technology as essential to meeting the growing demands for customization, agility, and efficiency.

NRF 2025 also made it clear that omnichannel is no longer an option but a must for retailers who want to remain competitive. Practical examples that reinforce this idea highlight the importance of integrated strategies that focus on traffic to the physical store, which plays an increasingly central role in the customer experience with the product and in the relationship with the brand.

Two key insights into this are: hybrid stores, and iintegrating the physical and digital, in which retailers offer a fluid experience that combines convenience and personalization; and social commerce, in which platforms like TikTok and Instagram are increasingly relevant to drive sales and engagement, as demonstrated by Pacsun, which reported 10% of its digital sales originated from these platforms. This integration allows companies to not only meet customer expectations, but also surprise them with innovative and meaningful experiences.

Sustainability has emerged as one of the central issues of the event in recent years. This theme reflects a definitive change in the consumer mentality. The new generations, especially Z and Alpha, prioritize brands that share their values, and this requires a complete restructuring of retail operations, such as waste reduction, in which sustainable packaging, recycling initiatives and reuse programs are at the center of brand strategies; and ecological products, as the demand for local, organic and plant-based it grows continuously, expanding the concept of conscious consumption beyond the food sector and covering personal care and home items. In this sense, those who manage to combine sustainable practices with operational efficiency will be ahead of the market and can serve a niche that has only been growing in retail.

Despite the advancement of e-commerce, physical retail reinvents itself as a space for connection and experimentation. Even with AI and new technologies, direct contact with the customer, with humanized and personalized service, remains a competitive differential and relevance to the relationship between brand and consumer.

In American Girl (Mattel), customizing dolls not only increases customer engagement, but also the average ticket per visit storytelling in social networks, attracting the youngest and also arousing the feeling of nostalgia in customers who are already adults. Already in Foot Locker, investments in interactive technology and personalization for the female audience show how understanding the evolution of customer expectations can transform a business.

Physical stores now transcend the simple act of selling products, becoming touchpoints that create unique and memorable experiences.

NRF 2025 also addressed the economic and technological challenges facing the industry, while highlighting promising opportunities a inflation, technological disruption and rising consumer expectations that increase pressure on retailers. With respect to opportunities, advanced personalization, driven by data and AI, and social commerce offer new ways to engage and retain consumers.

The vision for the future

Retail of the future will be defined by the ability to balance technological innovation with meaningful human experiences. Personalization will be one of the key competitive differentiators, but it must be accompanied by an ethical and transparent approach to data use.Sustainability, innovation and an unwavering focus on the customer will be at the heart of successful strategies.

The importance of leadership within companies was also a prominent subject at the fair. Creating and maintaining a solid culture has become an industry imperative, focusing on developing this culture through people, communicating and disseminating clear purposes and values inside and outside companies.

Again, we perceive how the great players retail are aligned in relation to the protagonism of people in business strategy. In this sense, service, customer experience, training and behavior are words that are repeated in different contexts.

NRF 2025 demonstrated that the retail industry is constantly evolving, and only those who embrace change with creativity, resilience and purpose will succeed in an increasingly dynamic industry.

Adir Ribeiro
Adir Ribeiro
Adir Ribeiro, CEO and founder of Praxis Business. He is a specialist in franchising, retail & sales channels, with more than 30 years of experience in these segments.He has lectured at more than 500 franchisee conventions and is a member of the Board of Directors and Franchisee Consultant.
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