Original source: https://content.yudu.com/web/69r/0A44arm/PCRSeptOct2025/html/index.html?page=6&origin=reader

Over the past few years, ‘AI in Retail’ has become a buzzword dominating headlines, but it’s essential to distinguish between what’s truly transformative and what’s merely trend driven. Today, intelligent automation is at every level of retail operations, delivering deeper personalisation and efficiency.

In PwC’s 27th Global CEO Survey, 76% of leaders acknowledge the need for reinvention, yet many are still uncertain about where to start. Retailers that embed AI across their operations are securing a competitive advantage. With 49% of CEOs expecting generative AI to increase profitability within the next 12 months, AI has moved from an operational enhancement to a core driver of business reinvention.

Retailers are embedding AI across operations. Some impactful examples include hyper
personalisation, AI-powered inventory and forecasting, customer service, automated checkout process, fraud detection and security, AI agents, and seamless point-of-sale (POS) systems. In fact, Gartner predicts that by 2026, 80% of retail executives will have successfully implemented AI in their day-to-day operations. AI is no longer peripheral; it is core.

As AI adoption accelerates, the lines between what’s hype and reality can blur. While many AI solutions deliver measurable value, some struggle to create seamless customer experiences – often due to a lack of clarity around where AI is most valuable, such as post-purchase engagement.

AI-powered personalisation is no longer a choice

Just a few years ago, AI in retail was confined to narrow use cases such as recommendation engines on e-commerce sites, basic chatbots, and some predictive analytics in supply chain planning. Fast forward to 2025, and retailers are integrating AI in every layer of retail operations.

From the shop floor to the back office, brands are now deploying AI to:

• Deliver hyper-personalisation that moves beyond “customers who bought this also
  bought that” to create tailored experiences across digital and physical touchpoints
• Automate inventory forecasting with models that consider weather, local events, and shifting consumer sentiment to prevent both overstock and stock-outs
• Improve customer experiences through AI-driven agents capable of handling complex queries while seamlessly escalating to human teams when needed
• Secure transactions with real-time fraud detection that learns and adapts faster than traditional rule-based systems
• Streamline the checkout process with seamless shopping experiences powered by
  computer vision and biometric payment
• Reimagine point-of-sale (POS) systems that integrate data across stores, e-commerce, and supply chains to give retailers a unified view of customer behaviour

Hyper-personalisation: From novelty to necessity

Customer personalisation has long been an ambition for retailers, but until recently, most approaches were generic discounts, broad segmentation, and simple product recommendations. However, advancements in generative AI tools and machine learning have made genuine hyper-personalisation possible at scale. Today, brands can analyse browsing data, past purchases, real-time context, and even social sentiment to create offers and experiences uniquely tailored to each shopper.

For example, a customer researching hiking boots might be presented not just with products, but also content on local trails, seasonal accessories, and loyalty offers timed to coincide with pay-day. This shift is not optional. Customers now expect brands to understand them intuitively. As per the McKinsey & Company research in the past, over 70% of consumers say they are more likely to engage with retailers who provide personalised interactions. If executed strategically, hyper-personalisation strengthens customer relationships, drives loyalty, and increases lifetime value. However, there is a caveat: personalisation must respect privacy. Collecting and applying data without transparency risks eroding the very trust retailers are trying to build. Responsible AI governance is therefore a prerequisite.

Establishing consumer trust in retail

Consumer trust is the foundation of personalisation. Without it, even the most advanced systems can fail to create meaningful engagement. Shoppers are becoming increasingly aware and sceptical of how their data is being used. Concerns range from whether AI-driven recommendations are biased, to whether chatbots are making decisions without human oversight, to whether their personal data is being sold or exposed. Brands need to address these concerns by being transparent, ensuring ethical AI models are bias-free and providing shoppers the choice to opt out from sharing their data. Forward-thinking retailers are already adopting responsible AI frameworks to guide their deployments.

What’s still just hype

Not every shiny AI tool delivers business value. In fact, one of the biggest risks for retailers in 2025 is chasing hype. Vendors are quick to market every new capability as “game-changing,” but retailers must cut through the noise. Identifying overhyped AI applications is critical to ensuring that deployments deliver tangible business value. Some solutions generate excitement but fail to increase return on investment (ROI) – yet may prove more valuable in areas such as post-purchase interactions, including delivery updates and returns automation Brands can consider virtual AI shopping assistants.

These tools can generate significant excitement, with promises of guiding customers through entire shopping journeys via conversational interfaces. Similarly, integrating AI into existing systems such as customer relationship management (CRM) tools can be significantly helpful. Yet for many retailers, uptake remains low, interactions are clunky, and the ROI is questionable. This does not mean these solutions lack future potential. But it does mean that C-suite leaders must apply a rigorous filter: will this technology improve operational efficiency, customer experience, or profitability in measurable terms? If not, it is hype – at least for now.

One area where hype often outpaces reality is post-purchase engagement. Brands invest heavily in pre-purchase AI such as recommendations, advertising, website optimisation. Yet far fewer focus on post-purchase, where customer loyalty is truly won or lost.
AI-driven updates on delivery, proactive returns automation, and intelligent customer service follow-ups remain underutilised. Here lies an untapped opportunity: retailers can differentiate not by flashy tools, but by applying AI where it matters most to customers.

Where AI in retail is heading

Looking beyond 2025, AI will not simply be a tool for optimisation but a force reshaping the industry, with three themes set to dominate. First, seamless omnichannel AI will move to the forefront, as retailers focus on unifying online and offline data to deliver consistent shopping experiences across every customer touchpoint. Whether a customer enters a brick-and-mortar store or shops online, AI will help brands ensure continuity and personalisation throughout the journey.

Second, AI’s role can also expand from driving efficiency to underpinning operational resilience. Brands are likely to deploy AI to forecast supply chain shocks, optimise coordination, and support dynamic workforce planning. This will enable retailers to absorb disruption with agility. Finally, with significant focus being placed on sustainability in retail, the industry can see sustainable AI emerge as both a regulatory requirement and a customer expectation. As regulators and consumers demand more transparency, AI systems will need to optimise not only for profit but for environmental responsibility. They should aim to extend efficiency gains beyond cost savings to include energy use, carbon reduction, and ethical sourcing. Retailers that thrive will be those who harness AI not just as a competitive edge, but as a strategic enabler of trust, resilience, and sustainable growth.

Advice for retailers

For retail executives, the leadership imperatives around AI are clear. Anchor AI in strategy, not hype. Retailers should deploy AI where it supports core business goals, not as a distraction. Brands must demand accountability from vendors on ROI, bias, and sustainability, ensuring solutions deliver measurable outcomes. Retailers should place trust and ethics at the centre of every deployment. It is critical to understand that retailers should invest not only in technology but also in people, training employees to see AI as a partner rather than a replacement. The story in retail is not about AI replacing people. It is about how AI can empower brands to connect with customers in smarter, faster, and more trustworthy ways. Retailers who use AI to empower their staff than replacing them will thrive in the long-term, balancing efficiency and human value.

Preparing for the future

AI in retail is not just about buzzwords or flashy demos. It is about reshaping the fundamentals of how retailers serve customers, run operations, and create value. The hype will come and go, and robot shop assistants may excite today and fade tomorrow – but the underlying reality is profound.

By focusing on hyper-personalisation, operational efficiency, and responsible adoption in tandem with human value, brands can use AI tools to build stronger, more resilient businesses. Those who see through the noise and focus on practical, human-centred application will stay ahead.

Original source: https://retailistmag.com/embracing-new-concepts-vs-the-return-to-brick-and-mortar/

By Amber Hovious, VP of Marketing and Partnerships, Teamwork Commerce

The rapid rise of e-commerce and omnichannel shopping has transformed the shopping
experience, proving more convenient and offering choice. However, now we are
experiencing a shift where retailers are returning to physical stores, with some online
only brands opening brick-and-mortar locations for the first time. Brands that initially
started with an online presence are increasingly investing in brick-and-mortar stores,
recognising the importance and value of in-person experiences and human connection.

The role of the store is evolving, not disappearing. Retailers and established brands are
embracing physical stores to offer customers immersive and memorable experiences
that purely digital platforms often struggle to replicate. Physical stores foster customer
loyalty, strengthen brand reputation and cater to today’s consumer needs for authentic,
human-to-human interactions.

However, to thrive and promote business growth, retailers must embrace innovation.
Balancing the return to physical retail and the development of new technologies to
enhance customer experience and drive operational efficiency for long-term success.
In this article, Amber Hovious, VP of Marketing and Partnerships at Teamwork
Commerce, will explore how retailers can successfully integrate new concepts whilst
benefiting from the return to physical retail. She can discuss:

Why physical spaces still matter

Despite the accelerated shift to e-commerce, the physical store remains a cornerstone
of retail strategy. Physical environments create a sensory and emotional connection that
digital interfaces cannot replicate – a place where shoppers can feel, touch, and
experience products in context. Importantly, physical stores can foster human
connection – the kind that builds loyalty and trust in a way that algorithms alone cannot.

Retailers must focus on reimagining what their stores can become: a brand experience
centre, a fulfilment hub, and a data-rich engagement point all at once. Hybrid models
such as Buy Online, Pick Up In Store (BOPIS) and Buy Online, Return In Store (BORIS)
bridge the convenience of digital with the immediacy of in-person service. These models
are operationally efficient as well as consumer engagement drivers, offering choice,
flexibility, and instant gratification – factors that drive consumer loyalty.

New retail technologies are becoming a game-changer

Implementing new technologies into physical stores drives consumer engagement and
delivers more personalised, engaging shopping journeys. Technology-driven shopping
experiences and pop-up retail are becoming powerful tools to test and learn what
stimulates consumer interest.

From AI-driven personalisation engines to augmented reality (AR) try-ons and
cashierless checkout systems, innovative tools are changing the way consumers interact
with retailers. Computer vision, RFID tagging, and IoT-powered analytics allow brands
to understand shopper behaviour in real time and adjust layouts, promotions, and
inventory dynamically.

Pop-up retail formats, powered by modular store technology and mobile POS, are
becoming increasingly popular. Brands can pilot new experiences, analyse performance,
and scale what works – without the overhead of permanent footprints. Retailers should
translate technological investment into frictionless, high-value experiences that make
shopping feel personal, effortless, and rewarding.

Blending innovation with tradition

The future of retail is not a choice between digital and physical, but the intelligent
integration of both. It’s important to combine both new innovative methods with
traditional concepts in physical stores to maximise sales and drive growth. Brands
should combine legacy retail strengths such as human service, sensory experience, and
brand storytelling with digital insights and omnichannel agility.

Retailers who can maintain this balance will not only increase conversions but also create a unified customer journey across touchpoints. Predictive analytics can inform product placement and staffing decisions; mobile engagement tools can extend relationships beyond the store visit. All this also helps brands use data to make highly informed decisions.

Tech-enhanced store formats

More retailers are returning to physical retail, making it crucial to explore the most
effective ways to attract and retain consumers. One of the key drivers of advanced
physical stores isn’t intuition, it’s intelligence. Data-driven layouts, guided by heat maps
and behavioural analytics, are optimising traffic flow and dwell time. RFID-enabled fitting rooms and smart mirrors create seamless product discovery while providing retailers with instant feedback on preferences and stock movement.

Meanwhile, advanced mobile POS systems can empower associates to serve customers
and complete transactions from anywhere in a store, allowing them to access customer
profiles, order history, and inventory in real time. As a result, staff can tailor customer
interactions more efficiently with all the data at their fingertips.

As more retailers return to physical retail to strengthen brand visibility and customer
trust, the emphasis must shift from transactions to transformation. Retailers shouldn’t
use tech to replace humans but deploy it as a strategic enabler of human-centric
experiences. This can help them make consumers feel recognised, valued, and inspired
to return.

In the new retail landscape, the measure of success is no longer footfall or click-through
rates – it’s engagement, trust, and loyalty. Retailers who cater to these values will stand
out in the near future.

Please see original post here: https://www.mytotalretail.com/article/retail-tech-moves-fast-and-so-should-you/

As we settle into the second half of 2025, the retail sector is navigating a complex convergence of artificial intelligence, automation, and evolving customer expectations. The first half of 2025 underscored a pivotal shift in retail technology. Omnichannel growth, experiential formats, AI copilots, and RFID are no longer emerging trends; they’re strategic imperatives shaping the industry’s trajectory.

With global retail IT investment projected at approximately $275 billion in 2025, the question isn’t whether to invest, but how to direct capital toward initiatives that drive sustainable advantage.

Staying ahead of the curve and making the right investments will be the difference between being a “trendsetter” and “one who follows.”

The Rise of AI Copilots for Store Associates and Back-End Ops

AI copilots can help store associates work more efficiently, quickly introducing new products to shoppers, offering personalized recommendations, and streamlining tasks. AI copilots are not a replacement strategy; they’re a force multiplier. By augmenting associates, copilots unlock productivity, elevate service, and create operational resilience.

The technology can provide real-time product information as well as inventory status updates and enable customer preferences to deliver a more tailored experience. Implementing copilots lifts the friction from time-consuming tasks such as locating items and checking stock, and they can ensure seamless execution for training on the job.

Similarly, AI copilots streamline inventory management and the supply chain, as well as assist the workforce with scheduling, demand forecasting and even loss prevention by analyzing patterns in real time. AI copilots can be integrated with retail solutions such as point of sale (POS). As a result, retailers can improve operational efficiency and focus on other areas such as customer engagement, value addition, and overall shopping experience. This not only drives immediate sales but also builds stronger, long-term customer loyalty.

Related story: Optimizing Retail Results Through Analytics and Data

Predictive Analytics is Changing Promotions and Pricing in Real Time

AI-powered dynamic pricing in retail uses advanced algorithms and machine learning to process vast amounts of data, enabling retailers to adjust prices in real time based on demand, competitor activity, and customer behavior. By continuously analyzing these factors, retailers can react instantly to market shifts and emerging consumer trends, driving sales, margins and customer satisfaction.

Predictive analytics enables retailers to benchmark competitor pricing and stay competitive in real time. To remain competitive, retailers can optimize their margins — especially in e-commerce and omnichannel environments.

Consumer segmentation is essential for relating to customers and maximizing sales. Predictive models can analyze customers, placing them into target segments based on the likelihood of responding to sales offers and what each consumer prefers, ultimately boosting sales. Similarly, the consumer will be recognized and the shopping journey can be tailored based on their shopping history, improving their experience and increasing the likelihood of them purchasing and becoming repeat buyers.

Predictive analysis is utilized to anticipate when demand will spike — e.g., when there’s an expected quiet period, which is particularly useful for when it comes to seasonal sales. Promotional strategies can then be adjusted accordingly. This will reduce overstock and improve profitability. Overall, retailers can adopt more strategic pricing by leveraging precision, where timing and relevance are the drivers for success.

What’s Working and What to Double Down On

Brands are under pressure to implement the correct technology solution into their operations. To get it right, it’s crucial to understand what’s working. With continuous advancements in retail technology, it can be overwhelming for brands when it comes to implementing the correct solutions. To ensure the solutions deployed are delivering optimal return on investment and achieving operational efficiency, retailers must select a proven partner that provides innovative solutions.

Automation isn’t convenience, it’s competitive necessity. RFID-enabled processes eliminate inefficiencies, accelerate checkout, and free associates to focus on value-added engagement.

Implementing secure customer relationship management platforms that utilize data to unify customer and operational data helps brands make better decisions and deliver more personalized suggestions. AI-driven insights are particularly useful for demand forecasting, pricing and consumer insights. Vast amounts of data are being analyzed to optimize operations and personalize experiences.

Adopting AI for the sake of trend-chasing may generate buzz but rarely drives sales or loyalty. Technology partnerships must go beyond pilots and proofs of concept. Executives should demand scalable, integrated solutions that deliver measurable ROI and align with long-term strategy.

Looking Ahead

Retailers that want to succeed in the retail sector with technology evolving day by day should be able to not only keep up with trends but also anticipate what’s next. From AI copilots and back-end operations to predictive analysis, the tools are all there. However, it’s deploying solutions that deliver true value and avoiding what’s just simply noise that matters most.

Amber Hovious is vice president of marketing and partnerships at Teamwork Commerce, a leading omnichannel solution provider.

BRISBANE, Australia, Sept. 29, 2025 /PRNewswire/ — Global retail tech leader Teamwork Commerce is partnering with Australian fashion and lifestyle powerhouse City Beach to deliver a seamless, next-generation omnichannel experience across all stores.

Known for its vibrant blend of youth fashion culture, City Beach has long embodied Australia’s laid-back yet adventurous spirit. Now, the brand is doubling down on its commitment to customer-centric innovation by introducing Teamwork Commerce’s advanced Mobile Point-of-Sale (POS) and Order Management System (OMS) solutions.

City Beach will implement Teamwork’s OMS technology to enable key omnichannel capabilities such as Buy Online, Return In-Store (BORIS) and Endless Aisle — allowing customers to shop beyond the walls of each store and access a wider range of products in real time.

In addition, City Beach will introduce Teamwork’s Mobile POS across locations, empowering associates to assist customers anywhere on the floor with instant access to inventory, customer profiles, and mobile checkout capabilities.

These enhancements will create a frictionless, connected retail experience that reflects the brand’s energetic DNA — making shopping seamless, efficient, and highly engaging for customers.

Rhian Greenway, Chief Information Officer, City Beach, said: “Our customers live fast-paced, connected lives — and they expect the same from us. With Teamwork Commerce, we’re not just upgrading tech — we’re transforming how we serve every shopper, in every store, every day.”

“We see this decision as a key milestone in our broader growth strategy, particularly as we expand into new territories and strengthen our eCommerce presence. The flexibility and scalability of the Teamwork platform make it the ideal solution to meet the evolving demands of modern retail. It gives us the ability to adapt quickly, personalize experiences and equip our store teams with the tools they need to thrive.”

CEO and Founder of Teamwork Commerce, Michael Mauerer, said: “City Beach is a bold and forward-thinking retailer with a strong connection to its customer base. We’re proud to support the brand’s next chapter with a future-ready tech stack that enables omnichannel innovation and puts the customer at the center of every transaction.”

The Teamwork Commerce solution is a powerful, unified technology stack designed to adapt rapidly to evolving customer expectations, unify its sales channels, and build a foundation for long-term growth in new markets.

About Teamwork Commerce

Teamwork Commerce is a flexible tech stack for retailers that includes POS, OMS, Clienteling, Inventory Control and Reporting – a cloud-based system that is constantly evolving to provide cutting-edge technology to meet the needs of the ever-changing retail landscape. With Teamwork’s omnichannel solution, retailers gain a deeper understanding of their customers to provide personalised experiences through invisible technology. Trusted by top retailers globally including Moose Knuckles, Colorado Rockies, Asics, Milwaukee Bucks, Catbird and Paul Stuart. Learn more at https://www.teamworkcommerce.com/

About City Beach

City Beach has established itself as one of the leading youth fashion retailers in Australia, with more than 65 stores across Australia, and over 300 brands stocked.

Founded in 1985 in Brisbane, QLD, City Beach has grown to become a part of many Australian’s lives.

From those humble beginnings until now, our commitment to build huge stores that are fun to visit has made City Beach stores a great place to hang out when you’re shopping with your friends.