Retailers bet on GenAI, in-store experience

65% of plan to invest in GenAI over the next five years.

Global retailers are ramping up investment in generative AI and rethinking physical store formats to stay competitive amidst ongoing economic pressures and shifting consumer behaviour, according to Euromonitor International.

In 2024 and 2025, the industry has faced a cost-of-living crisis, rising trade barriers, and geopolitical uncertainty. To stay competitive, retailers are prioritising personalisation, automation, and agile strategies that allow them to respond quickly to change.

Generative AI is now a key focus for retailers. According to Euromonitor’s 2024 industry survey, 65% of retail professionals plan to invest in GenAI over the next five years. But with knowledge gaps still common, adoption is increasingly research-driven.

Large retailers are leading the way. In April 2025, Walmart launched Trend-to-Product, a GenAI tool that cuts fashion design cycles from six months to six weeks by turning online trends into ready-made concepts. Target introduced a GenAI chatbot called Store Companion in mid-2024 to assist staff across nearly 2,000 stores, and is using the technology to enhance 100,000 product pages and improve online search.

Use cases include predictive analytics, digital shopping assistants, AI-generated marketing, and personalised promotions—tools designed to boost efficiency and customer satisfaction.

Retailers are also redesigning physical stores around wellness and personal time.

Euromonitor’s 2024 lifestyles survey found 51% of global consumers see “time for themselves” as essential to happiness.

In response, retailers are creating relaxing, experience-led spaces to drive foot traffic and loyalty.