European Journal of Emerging Marketing, Finance, and Corporate Strategy
A-Z Journals

NAVIGATING THE DIGITAL SHIFT: STRATEGIC ADAPTATION IN THE RETAIL LANDSCAPE THROUGH TECHNOLOGY

Authors
  • Dr. Anika S. Rao

    Senior Lecturer in Technology-Driven Business Models Faculty of Management Studies, University of Delhi, India
    Author
  • Dr. Marcus J. Lowell

    Professor of Strategic Innovation and Digital Operations Sloan School of Management, MIT, USA
    Author
Keywords:
Retail Strategy, Technology, Artificial Intelligence (AI), Generative AI (Gen AI)
Abstract

The retail industry is undergoing a profound transformation driven by rapid technological advancements, fundamentally reshaping consumer expectations, operational efficiencies, and competitive landscapes. This article synthesizes current literature and industry insights to explore the multifaceted impact of Artificial Intelligence (AI), Generative AI (Gen AI), robotics, IoT devices, and advanced data analytics on retail strategy. It details how these technologies are revolutionizing customer experience through personalization, omnichannel integration, and automated service, while also optimizing operations in warehousing, inventory management, and loss prevention. Furthermore, the article examines the evolution of marketing and pricing strategies through dynamic models and AI-driven content creation, highlighting emerging trends like human-AI collaboration and autonomous stores. The discussion emphasizes the need for proactive and holistic adaptation, addressing challenges related to investment, data privacy, and workforce upskilling. Ultimately, the article concludes that strategic integration of technology is critical for retailers to maintain relevance, drive efficiencies, and foster sustainable growth in the digital era.

Downloads
Download data is not yet available.
References

1. Adriano, L., 2018. Kanetix Leverages AI Technology to Optimize Consumer Experience. https://www.insurancebusinessmag.com/ca/news/technology/kanetix-leverages-ai-technology-to-optimize-consumer-experience-93703.aspx〉.

2. Amazon, 2024. How Amazon Leverages AI to Make Its Transportation Network Flow. https://freight.amazon.com/newsroom/2024-amazon-ai-network〉.

3. Arora, N., Chakraborty, I., Nishimura, Y., 2024. EXPRESS: AI-human hybrids for marketing research: leveraging LLMs as collaborators. J. Mark. 00222429241276529.

4. Baker, J., Parasuraman, A., Grewal, D., Voss, G.B., 2002. The influence of multiple store environment cues on perceived merchandise value and patronage intentions. J. Mark. 66 (2), 120–141.

5. Barker, P., 2025. Generating Many Happy Returns: How One Bad Return Experience Can Hurt Retailers. 〈https://www.mytotalretail.com/article/generate-many-happy-returns-how-one-bad-return-experience-can-hurt-retailers/〉.

6. Belanger, A., 2024. Air Canada Must Honor Refund Policy Invented by Airline’s Chatbot.〈https://arstechnica.com/tech-policy/2024/02/air-canada-must-honor-refund-policy-invented-by-airlines-chatbot/〉.

7. BMW, 2023. BMW Proactive Care – The Digital Concierge for BMW Customer Service. https://www.press.bmwgroup.com/usa/article/detail/T0437253EN_US/bmw-proactive-care-%E2%80%93-the-digital-concierge-for-bmw-customer-service〉.

8. Bolton, R., Shankar, V., 2003. An empirically driven taxonomy of retailer pricing and promotion strategies. J. Retail. 79 (4), 213–224.

9. Breugelmans, E., Altenburg, L., Lehmkuhle, F., Krafft, M., Lamey, L., Roggeveen, A.L., 2023. The future of physical stores: creating reasons for customers to visit. J. Retail. 99 (4), 532–546.

10. Brüns, J.D., Meißner, M., 2024. Do you create your content yourself? Using generative artificial intelligence for social media content creation diminishes perceived brand authenticity. J. Retail. Consum. Serv. 79, 103790 (July).

11. Burian, J., 2024. How Practical Utility and Rapid Advancement Are Influencing Gen AI. https://www.theceomagazine.com/business/innovation-technology/how-practical-utility-and-rapid-influence-gen-ai/〉.

12. Charlton, E., 2024. What is the Gig Economy and What’s the Deal for Gig Workers? 〈https://www.weforum.org/stories/2024/11/what-gig-economy-workers/〉.

13. Coffee, P., 2023. Retailers Enlist AI in Fight Against Returns. 〈https://www.wsj.com/articles/retailers-enlist-ai-in-fight-against-returns-02f437b1〉.

14. Davenport, T., Guha, A., Grewal, D., Bressgott, T., 2020. How artificial intelligence will change the future of marketing. J. Acad. Mark. Sci. 48, 24–42.

15. Dilmegani, C., Ermut, S., 2024. Generative AI in Marketing: Benefits & Use Cases in 2025. 〈https://research.aimultiple.com/generative-ai-in-marketing/〉.

16. Drenik, G., 2024. Redefining Customer Service in 2024.https://www.forbes.com/sites/garydrenik/2024/05/09/gen-ais-pivotal-role-in-redefining-customer-service-in-2024.

17. Ellickson, P., Misra, S., 2008. Supermarket pricing strategies. Mark. Sci. 27 (5), 811–828.

18. Evans, Michelle, 2025. Why Content Platforms Like TikTok and Netflix are Turning to Retail. Forbes. 〈https://www.forbes.com/sites/michelleevans1/2025/02/03/why-content-platforms-like-tiktok-and-netflix-are-turning-to-retail/〉. (Accessed February 9, 2025).

19. Evans, S., 2022. Walmart Rolls Out Symbiotic Robots Across 42 Warehouses. https://www.iotworldtoday.com/robotics/walmart-rolls-out-symbotic-robots-across-42-warehouses#close-modal

20. FaceMe, 2024. How Facial Recognition Will Change Smart Retail. 〈https://www.cyberlink.com/faceme/insights/articles/363/smart-retail-with-facial-recognition?srsltid=AfmBOoq3o6B6Puhy4h7Ao1Zac-OuoBMnyCBXLSdPxvma6nkzrY4EGYGE〉.

21. Feathers, T., 2024. Facial Recognition That Tracks Suspicious Friendliness Is Coming to a Store near You. 〈https://gizmodo.com/facial-recognition-that-tracks-suspicious-friendliness-is-coming-to-a-store-near-you-2000519190〉.

22. Field, H., 2025. Cohere Co-founder Sees Big AI Opportunity in Enterprise, Happy to Stay Out of ChatGPT’s Way. 〈https://www.cnbc.com/2025/01/09/cohere-sees-big-ai-opportunity-in-enterprise-away-from-chatgpt.html.

23. Fragiadakis, G., Diou, C., Kousiouris, G., Nikolaidou, M., 2024. Evaluating human-ai collaboration: a review and methodological framework. arXiv arXiv preprint: 2407.19098.

24. Gao, F., Agrawal, V.V., Cui, S., 2022. The effect of multichannel and omnichannel retailing on physical stores. Manag. Sci. 68 (2), 809–826.

25. Gauri, D.K., Jindal, R.P., Ratchford, B., Fox, E., Bhatnagar, A., Pandey, A., Navallo, J.R., Fogarty, J., Carr, S., Howerton, E., 2021. Evolution of retail formats: past, present, and future. J. Retail. 97 (1), 42–61.

26. Grewal, D., Levy, M., 2024. Marketing. McGraw-Hill.

27. Grewal, D., Roggeveen, A.L., Nordf¨alt, J., 2017. The future of retailing. J. Retail. 93 (1), 1–6.

28. Grewal, D., Noble, S.M., Roggeveen, A.L., Nordfalt, J., 2020. The future of in-store technology. J. Acad. Mark. Sci. 48, 96–113.

29. Grewal, D., Guha, A., Satornino, C.B., Schweiger, E.B., 2021a. Artificial intelligence: the light and the darkness. J. Bus. Res. 136, 229–236.

30. Grewal, D., Gauri, D.K., Roggeveen, A.L., Sethuraman, R., 2021b. Strategizing retailing in the new technology era. J. Retail. 97 (1), 6–12.

31. Grewal, D., Ahlbom, C.P., Noble, S.M., Shankar, V., Narang, U., Nordf¨alt, J., 2023a. The impact of in-store inspirational (vs. deal-oriented) communication on spending: The importance of activating consumption goal completion. J. Mark. Res. 60 (6), 1071–1094.

32. Grewal, D., Benoit, S., Noble, S.M., Guha, A., Ahlbom, C.P., Nordfalt, ¨ J., 2023b. Leveraging in-store technology and AI: increasing customer and employee efficiency and enhancing their experiences. J. Retail.

33. Grewal, D., Guha, A., Becker, M., 2024. AI is changing the world: achieving the promise, minimizing the peril. J. Macromarketing 44 (4), 936–947.

34. Grewal, D., Satornino, C.B., Davenport, T., Guha, A., 2025. How generative AI Is shaping the future of marketing. J. Acad. Mark. Sci. (forthcoming).

35. Guha, A., Grewal, D., 2022. How robots will affect the future of retailing. AMS Rev. 12 (3), 245–252.

36. Guha, A., Grewal, D., Kopalle, P.K., Haenlein, M., Schneider, M.J., Jung, H., Moustafa, R., Hegde, D.R., Hawkins, G., 2021. How artificial intelligence will affect the future of retailing. J. Retail. 97 (1), 28–41

37. Heater, B., 2022. Walmart is Adding Symbiotic Robots to Warehouses Across the Country. 〈https://techcrunch.com/2022/05/23/walmart-is-adding-symbotic-robots-to-w arehouses-across-the-country/〉.

38. Hess, N.J., Mende, M., Scott, M.L., Roggeveen, A.L., Grewal, D., 2024. Served by a cyborg: understanding consumer responses to human enhancement technologies. MSI Work. Pap.

39. Hoyer, W.D., Kroschke, M., Schmitt, B., Kraume, K., Shankar, V., 2020. Transforming the customer experience through new technologies. J. Interact. Mark. 51 (1), 57–71.

40. Kastrenakes, J., 2023. Amazon Adds AI-Generated Review Summaries So You Don’t Have to Read the Comments. 〈https://www.theverge.com/2023/8/14/23831391/amazon-review-summaries-generative-ai〉.

41. Kopalle, P.K., Pauwels, K., Akella, L.Y., Gangwar, M., 2023. Dynamic pricing: definition, implications for managers, and future research directions. J. Retail. 99 (4), 580–593.

42. Kshetri, N., Dwivedi, Y.K., Davenport, T.H., Panteli, N., 2024. Generative artificial intelligence in marketing: applications, opportunities, challenges, and research agenda. Int. J. Inf. Manag. 75, 102716.

43. Kumar, M., Kapoor, A., 2024. Generative AI and personalized video advertisements. SSRN Electron. J. Available at SSRN 4614118.

44. Kumar, N., Steenkamp, J.B.E., 2007. Brand versus brand. Int. Commer. Rev. ECR J. 7 (1), 47.

45. Levy, M., Grewal, D., 2023. Retailing Management. McGraw-Hill.

46. Li, S., Schneider, M.J., Yu, Y., Gupta, S., 2023. Reidentification risk in panel data: protecting for k-anonymity. Inf. Syst. Res. 34 (3), 1066–1088.

47. MBO Partners, 2024. 10 Ways to Use Gen AI to Streamline Your Small Business. 〈https://www.mbopartners.com/blog/how-market-small-business/10-ways-to-use-genai-to-streamline-your-small-business/〉.

48. McKinsey, 2024. LLM to ROI: How to Scale Gen AI in Retail. 〈https://www.mckinsey. com/industries/retail/our-insights/llm-to-roi-how-to-scale-gen-ai

49. Mearian, L., 2024. What’s Next for Generative AI in 2025? 〈https://www.computerworld.com/article/3627484/whats-next-for-generative-ai-in-2025.html〉.

50. Morgan, B., 2023. The Top 15 Best Examples of Phygital Customer Experiences. 〈https://www.forbes.com/sites/blakemorgan/2023/08/02/the-top-15-best-examples-of-phygital-customer-experiences/〉.

51. PR Newswire, 2025. Sensei Debuts World’s Largest Autonomous Supermarket in Portugal. 〈https://finance.yahoo.com/news/sensei-debuts-worlds-largest-autonomous-133400938.html〉.

52. Professional Golfers’ Association, 2022. Entegra; Saving Golf Clubs Time and Money with Food and Beverage Purchasing. 〈https://www.pga.info/news/entegra-saving-golf-clubs-time-and-money-with-food-and-beverage-purchasing/〉.

53. Rahman, S.M., Carlson, J., Gudergan, S.P., Wetzels, M., Grewal, D., 2022. Perceived omnichannel customer experience (OCX): concept, measurement, and impact. J. Retail. 98 (4), 611–632.

54. Retail Technology Innovation Hub, 2024. Scotmid Co-op’s AI-Driven Strategy to Minimize Food Waste. Retail Technology Innovation Hub.

55. Rindfleisch, A., Fukawa, N., Onzo, N., 2022. Robots in retail: rolling out the whiz. AMS Rev. 12 (3), 238–244.

56. Robson, K., 2024. Walmart Wants to Sell its AI Software to Retailers as It Diversifies Businesses. 〈https://www.msn.com/enus/money/companies/walmart-to-sell-its-ai-software-to-retailers-as-it-diversifies-business/ar-BB1jUFyt?ocid=BingNewsVerp〉.

57. Roggeveen, A.L., Sethuraman, R., 2020. Customer-interfacing retail technologies in 2020 & beyond: an integrative framework and research directions. J. Retail. 96 (3), 299–309.

58. Roggeveen, A.L., Nordfalt, ¨ J., Grewal, D., 2016. Do digital displays enhance sales? Role of retail format and message content. J. Retail. 92 (1), 122–131.

59. Roggeveen, A.L., Grewal, D., Schweiger, E.B., 2020. The DAST framework for retail atmospherics: the impact of in-and out-of-store retail journey touchpoints on the customer experience. J. Retail. 96 (1), 128–137.

60. Schweiger, E.B., Vannucci, V., Mazzoli, V., Grazzini, L., Roggeveen, A.L., Grewal, D., Donvito, R., Aiello, G., 2024. A comprehensive examination of digital retailing: a text-mining review and research agenda. J. Retail.

61. Shankar, V., 2018. How artificial intelligence (AI) is reshaping retailing. J. Retail. 94 (4), vi–xi.

62. Shankar, V., 2024. Managing the twin faces of AI: a commentary on ‘is AI changing the world for better or worse? J. Macromarketing 44 (4), 892–899.

63. Shankar, V., Kushwaha, T., 2021. Omnichannel marketing: are cross-channel effects symmetric? Int. J. Res. Mark. 38 (2), 290–310.

64. Shankar, V., Kalyanam, K., Setia, P., Golmohammadi, A., Tirunillai, S., Douglass, T., Hennessey, J., Bull, J., Waddoups, R., 2021. How technology is changing retail. J. Retail. 97 (1), 13–27.

65. Spence, C., Puccinelli, N.M., Grewal, D., Roggeveen, A.L., 2014. Store atmospherics: a multisensory perspective. Psychol. Mark. 31 (7), 472–485.

66. Taneja, S., Sharma, V., 2023. Role of beaconing marketing in improving customer buying experience. Enhancing Customer Engagement Through Location-Based Marketing. IGI Global, pp. 176–184

67. Tepfenhart, P., 2024. The AI Aisle: More Than a Dozen Reasons Why Retail and CPG are Already Seeing ROI on Gen AI. 〈https://cloud.google.com/transform/retail-cpg-genai-roi-report-dozen-reasons-ai-value〉.

68. Tode, C., 2020. How Starbucks uses AI to counter mobile’s isolating effect. Marketing Dive.

69. Vincent, J., 2020. Walmart is Giving up on Shelf-scanning Robots in Favor of Humans.〈https://www.theverge.com/2020/11/3/21547306/walmart-shelf-scanning-robots-automation-bossa-nova-robotics-contract-ended〉.

70. Vladimirova, M., 2024. Bunnings Breached Privacy Law by Scanning Customers’ Faces – But This Loophole Lets Other Shops Keep Doing It. 〈https://www.msn.com/en-au/money/other/bunnings-breached-privacy-law-by-scanning-customers-faces-but-this-loophole-lets-other-shops-keep-doing-it/ar-AA1ulax9?ocid=BingNewsVerp〉.

71. Walmart, 2023. Sam’s Club Member Access Platform (MAP) Pioneers True Closed-loop, Omnichannel Attribution for Advertising. 〈https://corporate.walmart.com/about/samsclub/news/2023/03/21/sams-club-member-access-platform-map-pioneers-trueclosed-loop-omnichannel-attribution-for-advertising〉. (Accessed February 9, 2025).

72. Whitefield-Madrano, Autumn, 2023. How Retailers Can Use AI to Prevent Return Fraud. https://biztechmagazine.com/article/2023/10/how-retailers-can-use-ai-prevent-return-fraud〉.

73. Ye, T., Shankar, V., 2024. Close a store to open a pandora’s box? The effects of store closure on sales, omnichannel shopping and mobile app usage. Mark. Sci. https://doi.org/10.1287/mksc.2022.0450.

Downloads
Published
2024-12-19
Section
Articles
License

All articles published by The Parthenon Frontiers and its associated journals are distributed under the terms of the Creative Commons Attribution (CC BY 4.0) International License unless otherwise stated. 

Authors retain full copyright of their published work. By submitting their manuscript, authors agree to grant The Parthenon Frontiers a non-exclusive license to publish, archive, and distribute the article worldwide. Authors are free to:

  • Share their article on personal websites, institutional repositories, or social media platforms.

  • Reuse their content in future works, presentations, or educational materials, provided proper citation of the original publication.

How to Cite

NAVIGATING THE DIGITAL SHIFT: STRATEGIC ADAPTATION IN THE RETAIL LANDSCAPE THROUGH TECHNOLOGY. (2024). European Journal of Emerging Marketing, Finance, and Corporate Strategy, 1(01), 20-37. https://parthenonfrontiers.com/index.php/ejemfcs/article/view/148

Similar Articles

You may also start an advanced similarity search for this article.