The digitalised retail store - automation & AI in the shop
Share
Digitalization in Retail: How AI and Automation Are Redefining the Brick-and-Mortar Store
In an era where e-commerce is booming, physical retail is also undergoing a transformation. Digitalization is playing a central role in this evolution: technologies like automation and artificial intelligence (AI) are reshaping processes, increasing efficiency, and enhancing the in-store customer experience. Studies show that digitally enabled stores achieve greater efficiency, higher revenues, and improved customer satisfaction.
How AI and Automation Are Transforming the Digital Store
- Optimized Inventory Management Automated systems that monitor inventory in real time help reduce overstocking and stockouts. According to a McKinsey study, AI-powered inventory management can help retailers cut warehouse costs by up to 30%. This type of retail automation enables more accurate replenishment and prevents supply shortages.
- Personalized Shopping Experiences With AI-driven customer analytics, stores can offer personalized recommendations directly at the point of sale. A Forrester analysis shows that in-store personalization increases the likelihood of purchase by 25%. AI is becoming a key driver of conversion in brick-and-mortar retail.
- Automated Self-Checkout Systems Self-checkout kiosks using AI for product recognition speed up the payment process. A Gartner study predicts that by 2025, over 50% of retailers will implement AI-powered self-checkout solutions to reduce wait times.
- Predictive Analytics for Store Performance AI enables analysis of customer traffic and sales data to optimize staff planning and product placement. According to Deloitte, predictive analytics can boost store efficiency by up to 20%.
How DEFACTO Is Powering the Digital Retail Store
DEFACTO supports retailers in making their physical stores future-ready through a range of advanced solutions:
- Process Automation with ServiceNow Automated workflows for inventory management, incident handling, and store operations increase efficiency and reduce costs.
- Using GenAI in Retail Operations Leveraging the Now Platform and integrated AI capabilities such as Now Assist, DEFACTO delivers solutions that personalize and streamline customer interactions.
- Data Integration via CDPs With Customer Data Platforms (CDPs), we connect data sources to create a 360-degree view of customers and store performance—laying the foundation for data-driven decision-making.
- In-Store Loyalty Programs We develop tailored loyalty solutions that strengthen on-site customer engagement and deliver added value that can't be replicated online.
- Training and Change Management Our experts support the rollout of new technologies and provide employee training to ensure effective use of digital tools.
The Future of Retail Is Digital
Studies confirm that digitized stores not only increase operational efficiency but also enhance the shopping experience. Digitalization of physical retail enables an integrated, omnichannel customer journey, stronger customer loyalty, and lower operational costs. AI and automation are the key technologies driving the future-proof retail store.
Sources:
- McKinsey Study: AI and Automation in Retail Operations (2023)
- Forrester Study: The Impact of AI on In-Store Personalization (2024)
- Gartner Study: Retail Technology Trends 2025 (2024)
- Deloitte Study: Predictive Analytics in Retail (2023)
