As technology continues to evolve and play a central role in retail, true value for consumers lies in genuine connection. Retailers’ use of technology must now go beyond simply offering greater personalisation; retailers must also strive for a deeper understanding of each customer’s needs, and deliver experiences that truly matter. Many retailers are now experimenting with new tools and innovations to provide consumers with this kind of connection, and enhance every customer interaction. This theme was a key topic of discussion at the 2025 FT Future of Retail Conference, which was organised by the Financial Times and took place in London on 7 October 2025.
Tech is redefining the in-store experience
Technology has already transformed online retail, but it is now playing an increasingly important role in physical stores as well. From smart fitting rooms to AI-powered assistants, new tools are helping retailers better support customers, streamline service, and create more engaging in-store experiences.
This shift is especially relevant for tech-savvy generations like Gen Z and Gen Alpha, who expect innovation, interactivity and seamless digital integration when visiting a store.
Younger generations are far more open to adopting new technological solutions.
In 2025, 86% of Gen Z and 77% of Millennials use generative AI to assist with daily tasks, compared to just 47% of baby boomers – a clear generational gap
Source: Euromonitor’s Voice of the Consumer: Lifestyles Survey, fielded January to February 2025
This growing comfort with technology also shapes expectations in other areas of life, including shopping, where intuitive and seamless experiences have become essential for attracting younger consumers. Unlike previous generations, where the goal was to replicate the offline experience online, today’s challenge to reach younger consumers is the reverse: ensuring that the physical environment aligns with and enhances the brand’s digital presence.
A concrete example of this in practice was shared by US-based hyperlocal delivery service Instacart with its “Connected Stores” platform, which brings digital tools directly into bricks-and-mortar stores. The platform includes AI-powered Caper Carts that let shoppers drop items into a smart cart (with built-in scales and sensors), which automatically scans and tracks purchases, along with mobile app-supported Scan & Pay via tech, Carrot Tags (connected electronic shelf labels), and Out-of-Stock Insights for real-time inventory visibility. Instacart claims that retailers deploying these technologies report improved operational efficiencies, more engaging shopping journeys, and stronger alignment between their in-store and digital ecosystems.
Loyalty grows through meaningful connections and shared values
Loyalty in retail is also being redefined by technology. Today’s tools allow brands to access far deeper insights into consumer behaviour than ever before. Loyalty is no longer driven solely by discounts or offers; it is about fostering a genuine sense of belonging. This idea reflects a broader shift in retail thinking: from targeting demographic groups to understanding individual personalities.
With the help of data and AI-powered analytics, retailers can now form a more complete picture of their customers, enabling more personalised and emotionally resonant experiences. The goal is to build loyalty rooted in relevance and connection, rather than just offering lower prices. To achieve this, brands are increasingly adopting advanced tools and strategies that help them understand their customers on a deeper level – ultimately creating experiences that go beyond transactions and cultivate lasting relationships. This idea is confirmed by Euromonitor’s Voice of the Consumer: Loyalty Survey, which found that six out of the 10 most influential loyalty features in 2025 are tied directly to personalisation, highlighting the importance for retailers of truly understanding their customers.
As retailers explore this direction, a growing number of AI assistants are emerging to bridge the gap between real consumer needs and brand offerings. At the FT Future of Retail event, Denmark-based jewellery retailer Pandora shared that its “big bet is on AI-based storytelling”. The company has already piloted an immersive, AI-powered experience in Australia that helps customers select charms by understanding their personal preferences and motivations. Pandora now plans to expand this AI assistant globally, strengthening customer connection through more meaningful and individualised interactions.
At the Future of Retail Summit, many insights were shared, but one message stood out above all: the future of retail lies in building genuine connections and lasting relationships with customers, beyond mere transactions. Technology plays a crucial role in enabling this, but its true purpose is to enhance – not replace – the human connection at the heart of every great retail experience.
Explore our strategy briefing Next-Gen Online Storefront: A Shopping Journey for One to examine the key drivers shaping the future of online retail.