™re not talking about separate digital solutions and digital customer experiences within channels, but something that’s pervasive, highly personalised and streamlined end-to-end across all of the channels. This is what consumers crave. The primary data sources for this personalisation are going to be a real differentiator. Previously, they were historical sources such as transaction logs and loyalty databases. Now, with the advancements of AI, social-media channels such as TikTok, Snapchat, Instagram and YouTube will become the new data sources for personalisation and engagement – just as they have become the driving force for product discovery and even purchase. Algorithms will be able to analyse vast amounts of text and video content on social channels to find out what consumers are saying and identify trends in real time. Clothing retailer Eileen Fisher, based in New York, is one brand that has evolved into a true omnichannel retailer. It transformed its business, merging and consolidating online and in-store shopping opportunities, maximising customer satisfaction. Many previously manual processes have been automated, enabling staff to spend more quality time with customers. The strategy has increased margins, improved customer experience and optimised internal operations. 2. Agentic AI takes action Agentic AI systems are designed to make decisions and take actions autonomously. They signal another major shift in how we work, organise and make decisions. For retailers, chat tools using Agentic AI will not only be able to collect data but also process it in real time to make instant recommendations. The main barrier to progress is systems integration. The full benefits of Agentic AI will be realised only with a holistic approach that extends from front-end customer service through to supply-chain operations. By tracking inventory levels and analysing social sentiment, Agentic AI can adjust shipments in response to real-time demand changes. Walmart demonstrated that AI-driven demand forecasting reduced out-of-stock items by 30 per cent. 3. Brand-retailer convergence Brands are increasingly becoming retailers while retailers are simultaneously becoming brands. This interesting trend is because customers want more than a merely transactional relationship with brands. Instead, they want an immersive experience with digital channels and integrated product offerings. Amazon, for example, is no longer just a marketplace for third-party products but has established numerous private-label brands such as Solimo and Pinzon. The Chinese car brand BYD evolved from a company that originally manufactured batteries. And brands such as Nike and Adidas are increasing their direct-to-consumer (DTC) activities. Another successful DTC example is the chocolate brand Hershey’s. It has created a DTC store that focuses on gifting, bundles and seasonal exclusives. The platform also connects to individual brand sites, facilitating effective cross-selling and strengthening brand engagement. Meanwhile retailers are building more of their own private-label brands for differentiation and to build customer loyalty. Private labels are also typically more profitable and can be a cheaper option for consumers seeking lower prices and more bargains during leaner times. Both Coles and Woolworths have seen private-label sales soar in recent years. Kmart has evolved from just a retailer to being a designer and a manufacturer as well. 4. E-commerce raising expectations Digital commerce has raised consumer expectations for convenience, speed and product selection. This means going further than just setting up a great website or mobile app. It’s about reimagining the entire end-to-end ecosystem of technology, from stock systems to payment and fulfilment. For example, Chinese retailer Alibaba has developed its system so it can process 65,000 transactions a second. Retailers need to think more holistically.  What about supply chain, and what role can AI play there in demand forecasting? In terms of an omnichannel experience, retailers can no longer be building systems by channel, rather adopting system architectures that cut across channels to deliver that integrated customer experience. 5. VR and AR technologies Rapid growth is taking place with VR (virtual reality) and AR (augmented reality) in retail, particularly for categories such as fashion and home products. Consumers want to see what furniture will look like in their home or what an outfit will look like on them rather than on a model with a different body size and shape. It’s the reason that people still go into stores and endure long queues to try on outfits. The last ‘touch and feel’ remain important. Traditional retailers should see their physical stores as a unique asset that enables this but also has digital experiences integrated into the stores. Retailers need to keep abreast of emerging technologies as well as trends in consumer behaviour. They will need to consider technology architecture and new ways of managing their operations. Ultimately, it all starts with the customer and how you deliver a customer promise. Keeping the customer at the centre of any strategy is critical for successful retail in the consumer-driven future.