The Retail Insider Technology Issue

Exploring the latest in retail technology innovation that’s transforming the industry.

Lenbrook and Motorola

The Retail Technology Issue +

Solutions boost retail efficiency in Canada >>> Pg. 10

Canada’s ‘Store of the Future’ Tomorrow’s stores will be built on data, design and people. pg. 16

The Rise of Retail Robotics

The use of robotics is helping reshape Canada’s retail supply chain. pg. 36 Tech-Enabled Mobile-First Approach

Retailers turn to tech and mobile-first strategies amid uncertainty. pg. 46

Technological advancements redefining the future of retail operations in Canada

As we release Retail Insider the Magazine’s fourth volume, third issue — our first Technology Issue — we’re entering one of the most transformative moments in Canadian retail. Technology has shifted from being a support function to becoming the very foundation of how retailers operate, connect, and grow. From AI-driven insights and digital twins to robotics and mobile-first strategies, the innovations shaping the sector are no longer theoretical—they’re here, redefining what it means to run a modern retail business in Canada.

This issue explores that transformation in depth. We begin with a look at how Lenbrook and Motorola Solutions are advancing in-store communication and safety, enabling retailers to improve productivity and enhance customer experience across the country. We then turn to Deloitte Canada’s “Store of the Future” perspective, where Shirl Gilani reminds us that technology alone isn’t the answer — it’s about data, design, and people working together to create seamless, human retail experiences.

Further in, we examine the rise of digital twins and Physical AI, exploring how 3D modeling and real-time simulation are reshaping everything from merchandising to supply chains. Robotics and automation, meanwhile, continue to gain traction in Canadian warehouses, helping retailers cut costs, increase speed, and improve working conditions. These stories reflect a sector rapidly modernizing while still rooted in the human experience that defines great retail.

Technology’s influence also extends beyond the operational. We feature Aperture, a Canadian-developed platform revolutionizing how retailers understand and reach their customers through geolocation data and visualization tools. And as SOTI and Cognizant share, mobile-first strategies and generative AI are helping retailers tackle everything from inventory optimization to workforce challenges, transforming how they serve both their customers and their teams.

As we look ahead to 2026, one thing is certain: Canadian retail is at a point of convergence where innovation, data, and creativity meet. Those who invest thoughtfully in technology — not just as tools, but as enablers of human connection — will lead the next generation of retail excellence.

Thank you to all of our contributors and partners who continue to share insights that help shape the conversation about the future of retail in Canada. I hope you enjoy this issue as much as we’ve enjoyed creating it.

Sincerely,

Craig Patterson Publisher craig@retail-insider.com

Volume four, Issue three

10 // Lenbrook and Motorola Solutions boost retail efficiency in Canada

For over 30 years, Lenbrook Canada Solutions has proudly served as the Canadian distributor for Motorola Solutions Inc., developing a trusted partnership and bringing cutting-edge communication technology to retailers across the country.

16 // Canada’s ‘Store of the Future’ will be built on data, design and people

Shirl Gilani, Senior Manager of Technology & Transformation at Deloitte Canada, argues that the store of the future will not simply be represented by a gadget refresh, but a full reinvention that connects data, systems, and people to create journeys that feel seamless and human.

28 // The introduction and use of digital twins and AI are rewiring retail

Exploring the ways in which warehouse robotics is helping retailers boost efficiency, cut costs and meet consumer demands in an unprecedented technology-driven supply chain revolution that’s changing the way retailers operate.

36 // Robotics and automation helping to reshape Canada’s retail supply chain

Walk into a modern fulfillment center in Canada today and you might feel as though you’ve stepped into a science fiction set. Autonomous mobile robots zip between aisles, robotic arms deftly unload pallets, and sensors hum as data flows across networks. For Canadian retailers, this isn’t futuristic. It’s the present, and the use of this type of technology is helping retailers boost efficiency, cut costs and meet consumer demands in a technology-driven supply chain revolution.

In

PUBLISHER

Craig

EDITOR-IN-CHIEF

Sean

GRAPHIC DESIGN

GBC Design

CONTRIBUTORS

Martin Cruz, Vikas Jha, Arun Qamra, Lee Rivett, Mario Toneguzzi

HEAD OF SALES AND SPONSORSHIP

Darryl Julott darryl@retail-insider.com

EDITORIAL OFFICE

100 Bloor Street West, Toronto, ON, M5S 3L3

Retail

therimagazine.com

Retailers investing in generative AI

A KPMG Canada survey of 135 retail executives reveals that a majority of them believe investing in generative AI is essential for remaining competitive, and an equal number of them expect to transition to a generative AI operating model within the following year.

81% of retail executives believe investing in generative AI is essential

Unified commerce results

According to a 2025 Unified Commerce Benchmark for Specialty Retail, by Manhattan Associates in collaboration with Incisiv & Google Cloud, Unified Commerce is making a big impact on retail.

24% customer satisfaction is higher when commerce is unified

1.7X higher customer lifetime value with unified commerce

9.3% of Canadian businesses already use generative AI

Shopify’s 8 retail technology trends for 2025

Shopify recently released its list of retail technology trends that are currently assisting retail brands to offer seamless customer experiences at scale and which will continue to have the biggest impact heading into 2026.

3X significantly higher revenue growth with unified commerce UNIFIED COMMERCE AI-POWERED EXPERIENCES AUTOMATED OPERATIONS CONNECTED COMMERCE CUSTOMER-FIRST ECOSYSTEM

INTEGRATED PAYMENTS

FUTURE-READY TECHNOLOGY

IT spending in retail industry on the rise

$262.6 BILLION

The recent global pandemic has accelerated retail’s deep dive into digital transformation, forcing many retailers to upgrade and replace their outdated legacy systems and processes. The pressure for transformation is coming from all sides, as consumers expect a more streamlined shopping experience, workers expect flexibility and modernity, and competitors like Amazon win more market share using cutting-edge tech as their advantage. in light of all this, Gartner predicts that global retail spending on technology will reach $262.6 Billion in 2027.

The continued growth of online grocery shopping

The retail industry is entering a new era. By 2025, technology, consumer behavior, and sustainability will reshape how retailers operate and engage with customers. According to a recently released report by Deliverect titled ‘2025 and Beyond’’ a number of transformative trends are shaping the future of online grocery.

5.2% 41% percentage of total retail sales represented by online grocery in 2025 of people prefer to do their grocery shopping online 83% 80% 59% of retail executives who anticipate adopting AIpowered automation tools 30% groceries represent nearlya third of all U.S. food waste of shoppers prefer free shipping and samedaydelivery

of people prefer to do their grocery shopping in-store

AI and retail business transformation

Retailers are dedicating significant resources to AI, with more than half (53%) planning to invest in AI capabilities over the next several years. According to Honeywell, some regions around the world are investing heavier than others.

96% India

A smarter way to “shop Canadian” is to choose local businesses

Ensuring that customers understand the significant impact that buying local can make is key to continued success

// By Marvin Cruz, Director of Research, Canadian Federation of Independent Business

There’s growing interest among small businesses in adopting AI and overall technology. If you run a small retail business in Canada, you’ve probably already tried out a few digital tools, whether it’s a point-of-sale system, an e-commerce platform, or a chatbot.

But the real payoff comes when you go beyond the basics. A recent report by the Canadian Federation of Independent Business (CFIB), co-sponsored by Payworks and Sage, found that 92% of small businesses use digital tools but only 10% have fully integrated them across their operations. By not fully embracing technology, retailers could miss on the productivity and financial gains that come with deeper digital adoption.

On average, businesses see returns on their tech investment within the first two years, with a 29% boost in productivity in the first year. For every dollar invested, they typically gained $1.60 in return. The most digitally mature businesses—what we call “Digital Leaders”, where digital tools are deeply integrated across all core functions—are outperforming the rest. These Leaders report $2.40 in return for every dollar spent. That’s 1.7 times more than their less mature counterparts, and a 34% increase in productivity.

Technology priorities vary by sector. For instance, retail businesses show strong e-commerce and communications uptake, highlighting a focus on customer-facing technologies.

A retailer in Alberta, for example, used integrated e-commerce and marketing platforms to cut outreach costs while driving more targeted sales.

One small retailer in Ontario is currently transitioning to a fully e-commerce model, moving away from traditional retail to focus on digital growth and scalability. This business regularly uses ChatGPT to support operations, content creation, customer service, and internal decision-making.

“Looking ahead, we’re developing a custom marketing AI bot to handle client engagement, lead generation, and targeted campaigns,” the business owner said. “The future of our company is fully digital—we’re committed to leveraging technology at every level to improve efficiency, customer experience, and long-term profitability.”

There’s also growing confidence in AI’s potential

to boost productivity. Currently, 41% of small businesses are using generative AI (GenAI), those who do are saving an average of 1.08 hours per day. This gain comes from efficiency: small businesses on average spend about 0.97 hours per day using GenAI, but the work completed would otherwise take 2.05 hours—effectively doubling their time and freeing up an extra hour for every hour invested.

That’s time they can reinvest into growing their business, serving customers, or focusing on strategy. Scaled across the economy, if even half of that time were reinvested into productive work, it could boost Canada’s GDP by $12.8 billion.

Much of this efficiency comes from how Gen AI is being used: businesses are leveraging it to create written content, such as emails, marketing copy or product descriptions, to personalize marketing or advertising campaigns, and to generate visual content such as images, graphics or videos. However, adopting digital technology is still a complex journey for many businesses. Retail and wholesale businesses frequently mention both

cost and skills as obstacles, which can limit the adoption of systems like online sales platforms or inventory management tools.

Technology can transform a business, and it could help retailers stay competitive, improve efficiency and connect with customers. As one retail business owner in Ontario put it, “If you can’t embrace technology and leverage it to improve productivity and the overall quality of the work that needs to be done, then you will be left in the dust.”

As Ottawa is conducting public consultations on its AI strategy, CFIB is urging governments to help businesses go from early adoption to deeper integration. We’re recommending tax-based incentives, better access to training, and clearer guidance to support small businesses navigate the digital landscape.

Marvin Cruz is the Director of Research at the Canadian Federation of Independent Business.

Lenbrook in Canada

For over 30 years, Lenbrook Canada Solutions (Lenbrook) has proudly served as the Canadian distributor for Motorola Solutions Inc. (Motorola), developing a trusted partnership that has brought cutting-edge communication technology to retailers across the country. The collaboration began with the launch of the Motorola Spirit, the first purpose-built two-way radio designed specifically for the retail sector. Since then, the partnership has expanded to deliver innovative solutions that address evolving industry challenges.

“Motorola has continued to innovate in retail communications, addressing key customer pain points,” said Kassandra King, Marketing Manager for Lenbrook Canada Solutions. “The Motorola Licence-Free Ecosystem is a cost-effective yet durable solution addressing needs like customer wait times, increased theft, employee communication and overall staff productivity.”

Motorola’s portfolio includes consumer GMRS radios and commercial-grade devices that deliver reliable communication for demanding retail enCanadian retailers, enhancing safety, Patterson

vironments, ensuring that even the largest operations can maintain seamless coordination.

What Sets Motorola Apart

Motorola’s Licence-Free Ecosystem has emerged as a standout solution in the retail sector, offering what King describes as “an all-in-one solution that no other provider can match.” This ecosystem integrates two-way radios with video surveillance, body-worn cameras, smart sensors, and third-party triggers, enabling a connected approach to managing retail operations.

This integration helps retailers respond rapidly to incidents, streamline team communication, and maintain a safer in-store environment. “It’s a comprehensive system that equips your team to handle any retail emergency,” said King.

Meeting the Challenges of Modern Retail

Labour shortages, operational inefficiencies, and

“Body-worn cameras can also be integrated with your CCTV system, giving retailers a complete picture of what happened when it matters most.”

- Kassandra King, Lenbrook Canada Solutions

rising customer expectations are some of the biggest challenges retailers face today. Motorola’s communication solutions help overcome these obstacles by keeping employees connected in real time.

“In fast-paced environments where every minute counts and staffing may be limited, radios enable teams to stay connected instantly,” King explained. “This eliminates the need to physically track down a colleague or wait for a response, allowing employees to multitask and respond instantly.”

The results are lower wait times, happier customers, and increased sales. Call buttons can be strategically placed around the store in areas where staff are not always present, such as locked cabinets, garden centres, or unmanned departments. Customers simply press a button to summon assistance, improving service levels while reducing staff frustration.

Enhancing Loss Prevention and Store Security

Motorola’s technology solutions also play a key role in protecting merchandise and ensuring safety. Call buttons can be installed near high-value products like perfume, baby formula, and razor blades to deter theft and allow staff to respond quickly.

Body-worn cameras offer another layer of security, providing visual documentation of incidents and helping to de-escalate potential conflicts. “Body-worn cameras can also be integrated with your CCTV system, giving retailers a complete picture of what happened when it matters most,” King noted.

Innovation Through AI, IoT, and Smart Sensors

Motorola is advancing safety and connectivity through its Smart Hub and HALO Smart Sensor technologies. The Smart Hub acts as the “brains” of the system, seamlessly integrating radios, call

buttons, and data analytics into a unified ecosystem. Complementing this, the HALO Smart Sensor enhances protection by monitoring air quality and detecting vaping, aggression, temperature fluctuations, and even gunshots—particularly in sensitive areas where cameras are not permitted, such as restrooms and changing rooms.

AI plays a growing role in Motorola’s solutions. “The HALO Smart Sensor uses AI to detect elevated voices and can even respond to key phrases like ‘Help Emergency,’” King said. “This allows staff to respond proactively to potential threats.”

Integration with Retail Systems

Modern retail relies on seamless integration across systems, and Motorola’s solutions are designed to work with point-of-sale (POS), inventory management, and omnichannel platforms.

Body-worn cameras can be connected to CCTV systems, ensuring that critical incidents are captured from multiple angles.

With the recent acquisition of Theatro Labs Inc., Motorola is doubling down on its commitment to the future of retail technology. Theatro’s voice-powered collaboration software for frontline workers allows for real-time communication, inventory checks, and pricing confirmation -- all while employees are assisting customers.

Customer Experience at the Forefront

Improving the customer experience is a central goal of Motorola’s retail solutions. The digital ecosystem reduces wait times and ensures customers receive timely assistance.

“Customers no longer have to search for an em-

ployee or leave a product behind when they can’t find help,” King explained. “A simple push of a button connects them with staff in seconds.”

Retailers who have adopted Motorola’s ecosystem solution report measurable improvements. Staff productivity has increased, theft has declined, and curbside pickup operations have become more efficient.

Canadian Retailer Success Stories

Motorola’s technology is already delivering results for some of Canada’s largest retail chains, including Canadian Tire, Best Buy, Real Canadian Superstore, Winners, Marshalls, American Eagle, Zara, GAP, Old Navy and Sephora.

At Canadian Tire locations across the country, call buttons and radios are being used to improve response times and secure high-value merchandise. Kyle Etienne from Canadian Tire #336 in Oshawa noted:

“Giving our customers the ability to press a button for assistance is the next best thing to interacting with every single customer who walks in. It’s an immediate way to improve service.”

Bryan Gascon, Associate Dealer at Canadian Tire #486 in Terrace, B.C., echoed the sentiment:

“Motorola radios are probably the number one way to immediately increase customer service. In our store, all staff wear radios. The result is a much quieter, more pleasant shopping environment.”

Building a Safer Future

Motorola’s focus on “Solving for Safer” reflects its mission to protect people, property, and places. This commitment is shaping product development over the next three to five years, with Motorola seeking new ways to integrate security and communication technologies.

The integration of Theatro’s software points to a future where retail employees are even more connected, equipped with the tools they need to deliver outstanding service in real time.

“Ultimately, Theatro provides a suite of collaboration applications that deliver information in real time to improve overall productivity and physical safety,” said King. “This is the future of retail communication.”

The partnership between Lenbrook and Motorola underscores the growing importance of connected technology ecosystems in retail. By combining two-way communication, smart sensors, call buttons, and data analytics, Motorola is helping retailers solve pressing challenges, from labour shortages to theft prevention.

With innovations that prioritize both safety and efficiency, Motorola and Lenbrook are positioned as key players in shaping the future of retail operations in Canada.

For more information about the ways in which Lenbrook and Motorola Solutions can help your organizations boost efficiency, cut costs and meet consumer demands through the deployment and use of cutting-edge communications tools, visit www.lenbrookcanadasolutions.com.

Canada’s the Future’ built on data, and

people

// By Craig

‘Store of Future’ will be data, design people

Canadian retail sits at a crossroads. Digital discovery is now routine, yet most purchases still close at the till. Many shoppers expect rich in-store experiences, but front-line staff often lack the tools to deliver them. In a new Deloitte perspective shared with Retail Insider, Shirl Gilani, Senior Manager of Technology & Transformation at Deloitte Canada, argues that the store of the future is not a gadget refresh. It is a full reinvention that connects data, systems, and people to create journeys that feel seamless and human.

“The numbers speak for themselves,” says Gilani. “Sales still happen a lot more in the store and as much as online is amazing, a lot of product discovery starts in your online world.” That tension is the opportunity. Retailers that design stores as connected experiences, supported by clean data and empowered associates, can win the next decade of Canadian retail.

What Shoppers Do vs. What Stores Deliver

Fresh Deloitte data underscores the gap between shopper demand and in-store capability. Eighty-

two per cent of customers want to see and feel products in store before they buy. At the same time, 60 per cent of shopping journeys begin online, yet 80 per cent of sales are still completed in store. The message is clear. Canadians mix digital discovery with physical evaluation and purchase.

The delivery side lags. Only 35 per cent of retail executives believe their staff has the tools and information to personalize customer experiences. That is the crux of the challenge. “People like to feel the fabric or try the shoe on,” says Gilani. “You want to touch, see, feel, experience before you purchase.” “It’s a frustrating experience,” she adds, when store systems fail to recognize the journey, describing the all-too-common mismatch between online inventory counts and what a customer finds on a shelf.

Designing for Gen Z and Gen Alpha

The store of the future must meet the expectations of digital-native cohorts, while staying wel-

“They’re [Gen Z and Gen Alpha] not just looking for, “I’m going to go to a store, shop, and then get back. They’re looking foran experience that they can immerse themselves in, take a Tik-Tok video and put it online.”

- Shirl Gilani, Deloitte Canada

coming to all ages. Gilani sees a specific opening with Gen Z and Gen Alpha. They want shopping to be worth the trip. The experience should be photogenic, shareable, and fast. “They’re not just looking for, ‘I’m going to go to a store, shop, and get back,’” she says. “They’re looking for an experience that they can immerse themselves in, take a TikTok video, and put it online.”

This is not about gimmicks. It is about building spaces that invite content creation and deliver value. Openings that feature creators, striking visual displays, and exclusive programs help. “At the opening of Simons at CF Toronto Eaton Centre, the number of influencers creating content in real time was amazing,” says Gilani. The effect extends beyond launch day when the store continues to refresh, reward, and listen.

Connected Journeys, Not Disconnected Counters

A recurring Canadian pain point is siloed systems. Shoppers move across channels with ease. Many retailers still make them choose a lane. “It’s not just about modern tech,” she says. “Create connected technology.” She points to cases where pharmacy and front-of-store point-of-sale systems do not talk, or where an online return cannot be completed in store. Each handoff adds friction. The store of the future removes it.

That requires two disciplines. First, integrate systems so carts, orders, and promotions follow the customer. Second, elevate the associate device. “Consumers have access to amazing technology,” she says. “As a store associate, what do you have? Broken systems.” Her prescription is simple. Put secure, agentic tools in associates’ hands so they can view live inventory, see past purchases, and make smart suggestions in real time. The result is faster service and bigger baskets.

Data as the Operating Backbone

Technology only works as well as the data under it. “Even if you put the most amazing technology

out there, your agent is ultimately reading the data,” says Gilani. “If your data is not consistent and not up to date, the recommendations are only so much.” The store of the future runs on clean, shared product, inventory, order, and promotion data.

This is a discipline, not a project. Retailers should standardize product hierarchies, align channel promotions, and invest in perpetual inventory accuracy. That accuracy unlocks upstream wins such as accurate online promises and faster clickand-collect. It also enables downstream use cases in clientelling, visual merchandising, and loss prevention analytics.

Empowered People, Better Stores

Gilani is clear that the store of the future is a people story. Associates are the face of the brand. They need tools that remove low-value tasks and free them to serve. “Let’s simplify that job so they can do a better job of giving a better customer

experience,” she says. Think dynamic tasking that auto-prioritizes restocks. Think guided selling that surfaces relevant accessories at the fitting room. Think queue relief with mobile checkout where policy allows.

Training and change management matter as much as software. “If you don’t think about change management and alignment across leadership, no transformation will be successful,” Gilani adds. That includes clear goals, role design, and incentives that reward behaviours that lift conversion and loyalty.

Frictionless Checkout Is the Next Big Leap

If you want to see Canadian shoppers smile, shorten the line. “The biggest challenge is standing in the lineup,” says Gilani. Her vision is simple. Recognize the loyal customer, scan items in the cart, finalize payment, and let them get on with their lives. Technology now makes this possible in controlled environments. Image rec-

ognition, computer vision, and shelf sensors are improving accuracy. Modern loyalty programs link identity to payment with a clean data layer tying it all together.

Not every format needs a full “walk out” model. Many can win with mobile-first self-checkout, roving associates who can scan and pay, and smart returns that take seconds, not minutes. The common thread is that the brand respects the shopper’s time.

Fitting Rooms, AR and the Power of Try-On

Canadian retailers can deliver quick wins where purchase intent peaks. One area is the fitting room. “Scan items as I walk into the change room,” says Gilani. “If I have an extra small jacket, let me request a small without leaving the room.” Smart mirrors and associate tablets can make that smooth. They also gather size, colour, and bundle data that informs replenishment and design.

Augmented reality can shine in home and fashion. Gilani points to how John Lewis in the UK allows shoppers to visualize couches and rooms on a tablet. The Canadian play is similar. Give customers confidence by showing how items live together, in store and at home. That is how returns fall and satisfaction rises.

Loyalty that Motivates, Not Just Tracks

Loyalty is surging back to the strategic core. Programs that reward visits, engagement, and multi-channel behaviour keep the flywheel turning. Gilani admires designs that blend exclusivity with utility. “Our generation and the next generations are longing for exclusive experiences,” she says, citing tiered benefits and personal services as draws. The point is not points alone. The point is a relationship that feels recognized and rewarding across channels.

Smaller retailers can join multi-merchant platforms to share data and economics. Or they

FEATURE // BRAND PROFILE can build simple, sticky programs around store events, pop-ups, and social engagement. The key is to keep the promise clear and the redemption easy.

Lessons from Leaders: Simons and Beyond

Simons offers a Canadian case study in modern department store retail. “They have personas they cater to,” says Gilani. “They also have great brand presence.” The brand’s mix of accessible private label and curated designer keeps discovery high. The environment invites exploration and content. That said, every retailer can adapt these principles. Leaders design spaces that encourage dwell, provide strong service, and refresh often. They also use data to guide layout, assortments, and staffing.

Gilani also notes how global peers push immersive storytelling. She cites a Glossier experience that used live generative poetry, scent, and visuals to create a memorable path to purchase. Canadian brands can localize similar ideas. Bring products to life through sensory design. Add a digital layer that saves time and delights the phone camera.

Shrink has spiked into board agendas. Smarter stores fight loss with data. “If you don’t know how much inventory you have in the store and somebody’s taking an item out of it, how will you reconcile the difference?” asks Gilani. Accurate on-hand files allow analytics and computer vision to flag exceptions, not chase ghosts. That saves costs and protects staff. It also produces cleaner shelves and fewer out-of-stocks for honest customers.

The Small-Retailer Playbook

Enterprise transformations take time. Smaller retailers can move faster. “They have an opportunity to start from scratch,” Gilani notes. Start clean with a unified platform for POS, e-commerce, and inventory. Pick one catalogue, one

customer file, and one truth. Use modern devices that deliver clientelling and mobile checkout out of the box. Activate pop-ups to go where your customers already gather. Tie it together with a simple loyalty program and consistent social storytelling.

Affordable agentic tools can also serve to help smaller teams punch above their weight. Associates can use approved AI to draft product descriptions, triage FAQs, or plan schedules, with privacy safeguards in place. The goal is not to replace people. It is to shift time from admin to service.

The Next Five Years: People, Process, Technology

Gilani returns to the basics. The store of the future rests on three pillars. People, process, and technology. Many projects invert the order. The result is shelfware and stalled pilots. Start with the customer journey you want, then define the associate roles that will deliver it. Align policies so the experience is consistent online and in store. Only then lock in the platforms. “We bring our change management colleagues in early,” Gilani says. “You cannot lose sight of processes and people.”

In the future, expect the Canadian retail store to feel faster and more personalized. Checkout will shrink. Clientelling will expand. Fitting rooms will become smarter. AR will reduce uncertainty in home and fashion. Loyalty will link digital engagement to store visits. and social content will shape merchandising and events. The differentiator will be how well each brand stitches it together.

“We all want that human connection,” says Gilani. “Post-COVID, this is where we are. If you want to stay relevant, you will have to invest and give that experience to customers.” The prize is worth the effort. When stores work as designed, conversion climbs, returns fall, and teams feel proud of the service they provide.

Retailers incresingly targeted by cybercriminals, says cybersecurity expert

// By Mario Toneguzzi

Cybercriminals are zeroing in on retailers with increasingly sophisticated attacks designed to cause maximum disruption—and force multimillion-dollar payouts.

“They go for places where disruption causes maximum chaos,” said Tony Anscombe, Chief Security Evangelist with global cybersecurity company ESET, who is based in the UK and works closely with North American clients.

With ransomware attacks like the recent $300-million hit on Marks & Spencer, and breaches involving major brands like Victoria’s Secret and Cartier, Anscombe warns that “a cyber attacker is looking at who’s most likely to pay.” The appeal lies in the data-rich environments retailers operate in, and their dependence on on-

line operations and distribution—prime targets for extortion. Despite many adopting frameworks like NIST (National Institute of Standards and Technology) and investing in cyber insurance, “human error” and third-party vulnerabilities remain open doors to attackers.

As Anscombe puts it, “You grow or you die,” and in retail’s digital battlefield, that growth depends on proactive security, not complacency.

“We’re a long-standing cybersecurity company. We’ve been in the market for over 30 years,” he said. “What’s unusual is that we’re still privately owned—no outside investment, no private equity, and still run by our founders.”

“In Europe, we’re actually the largest provider

of business cybersecurity products. We started out providing what used to be called antivirus software. Today, we’re more focused on advanced threat detection and response—what’s known as EDR and MDR. That includes both managed and on-premise solutions, depending on what our customers need.”

The company also distinguishes itself through its focus on research.

“If you follow the ESET brand, you’ll see we publish a lot of research. We even have a dedicated site—WeLiveSecurity.com—for research publications. That’s separate from our main product site, eset.com,” he said. “Our research often covers areas that go beyond our products, like critical infrastructure and operational technology.”

With respect to retail, cybercriminals are becoming more aggressive and strategic in their attacks.

“Cybercriminals go for places where disruption causes maximum chaos,” he said. “If they get into the right part of the business and disrupt it, it stops operations. And of course, most retailers have a lot of rich personal data on their shoppers as well.”

He pointed to the Marks & Spencer attack around Easter this year. “It’s reported to have cost them about $300 million in profits.”

That kind of financial fallout makes retailers tempting ransomware targets.

“A cyber attacker is looking at who’s most likely to pay my ransomware demand,” said Anscombe. “If you can find somebody that has a high disruption cost—like taking down an online store or halting distribution—then you are more likely to get paid.”

Retailers are also more likely to carry cyber risk insurance, which increases the chance of a payout when insurers get involved.

While large retailers often follow cybersecurity frameworks such as those from NIST, they’re not always enough.

“Companies have a hybrid of those,” said Anscombe. “For example, in Canada, you’ve got privacy legislation. A company may well have a hybrid of a security framework, compliance with regulation, and industry-specific requirements. If a retailer offers financial services like credit cards, they might also have to comply with financial regulation.”

But even the best plans have their weaknesses.

“There are many times it’s unfortunately human error,” said Anscombe. “We’re the weak point. Unfortunately for most organizations, human error is often the place. Or third-party—that’s the other big inroad. If you can breach a smaller company that does business with a bigger company, potentially you might be able to get to the bigger company.”

Anscombe said fashion and luxury brands are especially vulnerable.

“If you look at the breaches recently—you’ve got

“If a retailer offers financial services like credit cards, they may also have to comply with financial regulation.”

- Tony Anscombe, ESET

Victoria’s Secret, Cartier—some really prestigious brands have been hit,” he noted. “The media will pick up on a breach of a significant brand. If someone like Ace Hardware got hit in the U.S., it probably wouldn’t make much of a splash. But a brand like Cartier? That is significant news.”

“Companies don’t like bad press because they lose trust. It affects their stock price. I think Whole Foods had an incident earlier. As I recall, they lost 8% of their stock price (initially).”

And with public companies required to disclose breaches through SEC filings, information becomes public fast.

“That makes them, unfortunately, very much in the frame for cybercriminals. They’re going to want to minimize disruption, which increases the likelihood they’ll pay a ransomware demand.”

So what can retailers do to protect themselves?

“Firstly, they should audit what they’ve got and understand where their weak points are,” he said. “You often find in companies that round the corner will be some remote access server that still doesn’t use two-factor authentication.”

“Everything should be known and secure—MFA (Multi-Factor Authentication), access controls.

When was the last time they tested their restore, not just their backup? If an organization has never tested that you can restore it, they might have problems.”

Anscombe recommends more frequent employee training, not just the annual insurance checkbox.

“Even a 10-minute snapshot version every three months that refreshes what phishing links look like, etc., can make a big difference.”

He also emphasized the importance of keeping software up to date and using advanced tools like EDR (endpoint detection and response).

“Cyber attacks don’t happen the way you and I think of as viruses anymore,” he explained. “Somebody gets in, routes around for a bit, and tries to stay undetected. EDR picks up anomalies in traffic—like someone outside communicating with the inside in an unusual way.”

In fact, that’s how Whole Foods reportedly detected their recent breach.

“They picked up weird traffic—an anomaly. So as a precaution, they shut down their systems.”

That proactive approach is key in an increasingly risky digital environment for retailers.

“Almost 3 in 10 businesses say technology adoption improved their operational efficiency.”

>>> Statistics Canada reveals that in Q2 2024, nearly 3 in 10 Canadian businesses reported that technology and innovation improved efficiency over prior 12 months.

How digital twins and rewiring

retail

Retailers scale AI and digital twins, Nfinite expands 3D data and Canadian reshaping stores, supply chains and merchandising // By Craig

Canadian retailers are entering a pivotal phase in their digital transformation. What began as a push to enhance e-commerce imagery has matured into a sweeping rethink of how products are designed, moved, stocked, merchandised and sold. The catalyst is the digital twin, a high-fidelity, three-dimensional representation of products and spaces that now anchors a broader movement often described as Physical AI. Global bellwethers, including Walmart, are moving beyond pilots to embed these capabilities into daily operations, while vendors such as Paris-based Nfinite are supplying the 3D data pipelines that make these systems possible.

For an industry that prizes speed and precision, the promise is practical. Digital twins power simulations before capital is deployed, train robots without interrupting operations, improve autonomous checkout accuracy, and help retail teams test merchandising and store flows with far less guesswork. “For me, a digital twin is a realistic representation of an object or of an environment,” said Alexandre de Vigan, founder and CEO of Nfinite, in a recent conversation with

pilots show how Physical AI is Craig Patterson

Retail Insider. “For it to be a digital twin, it has to be in 3D. Therefore it’s not an image, it is really a 3D representation that is realistic and specific of a specific object or environment.”

From Images to Infrastructure

Early commercial use of 3D models centred on content creation and e-commerce visuals. Retailers could photograph less, render more and achieve brand consistency across channels. That was only the beginning. As De Vigan explained, the industry has shifted toward applications that connect directly to operations, automation and robotics.

“At the beginning, the digital twins were mainly used for engineering,” he said. “In the last three years we’ve seen that moving to a more visualization tool. Now what’s interesting is it’s coming back with what we call physical AI. Physical AI is the ability to represent in space, interact with space and manipulate space.” This pivot reframes

“At the beginning, the digital twins were mainly used for engineering. In the last three years, we’ve seen that moving to a more visualization tool. Now what’s interesting is it’s coming back with what we call physical AI.”

- Alexander de Vigan, Nfinite

digital twins not as a nice-to-have asset library, but as a living data layer that supports omnichannel journeys, in-store systems, and supply chain decisions.

Walmart’s Expanding Template

The scale of Walmart’s recent AI initiatives illustrates how quickly expectations are changing. The retailer is rolling out predictive AI, advanced forecasting, and “self-healing inventory” across multiple geographies, including Canada. The company’s approach blends robotics, computer vision and model-driven planning to streamline movement from factory to shelf. “What’s amazing with Walmart is, Walmart has shown that it’s not a retailer, it’s a technology company,” said De Vigan. “They’re leading this physical AI for retail.”

It is a lead that matters in Canada, where domestic banners benchmark operational tactics against the world’s largest players. Self-healing systems, for example, can flag and resolve issues without human intervention, from damaged goods in a distribution centre to a product that falls from a shelf. “A self-healing problem is an automated system that is able to detect, understand, and propose a solution to be solved,” De Vigan noted, adding a store-level scenario where a system “would detect, create an alert, send a robot to pick it up, clean it and another robot to put the same object in the shelf.” While elements of that vision remain in development, the trajectory is clear.

Why the Definition Matters

Retailers have long used the term “digital twin” loosely. Precision matters because outcomes depend on fidelity, specificity and how the data is used. De Vigan is unequivocal that a true twin must be three-dimensional and tied to a specific product or space, not a generic category standin. There are also tiers of fidelity. Some use cases require exact physical behaviour, down to screws

and internal assemblies. Others can rely on exterior accuracy to train vision systems or simulate shopper movement. “You can have a twin that just looks the same, but then it’s kind of a rabbit hole,” he said. “You might not need the pipes inside the walls for retail use cases. For industrial use cases, you might.”

This nuance underpins a host of investment decisions across a range of organizations. A grocer piloting autonomous checkout, for instance, will prioritise shelf-level accuracy and packaging detail above most other things, while a warehouse automation team may need the dimensions and weight distribution of a carton and its surrounding bay. The key is in matching the scope of the twin to the outcome and cost tolerance, then updating that model as the business case evolves.

From Robot Training to Checkout Accuracy

Physical AI becomes tangible when it solves a bottleneck. De Vigan points to training as a high-impact application. Robots cannot manipulate objects they do not understand, and they cannot navigate layouts that lack spatial truth. Digital twins create that training ground. “The digital twinning has a massive impact on robot training policies for navigation, transportation, and manipulation,” he said, citing use cases that span factories, fulfilment centres and stores.

Detection is another pillar. Computer vision systems learn faster and perform better when trained on accurate 3D data, whether they are spotting a defect on an inbound pallet or monitoring shelf conditions. The step-change shows

up at the checkout. “By integrating what we call spatial information, we’ve proved that we could decrease the error rate by 10x,” De Vigan said. “Going from 90% detection to 99.3% detection.” For retailers wrestling with shrink, labour costs and customer frustration at the front end, that kind of improvement is not a marginal win. It is an economic unlock.

Merchandising, Planograms and Flow

Store teams are also finding leverage. Twin-driven planogramming allows merchants to test facings, adjacencies and promotional displays against expected traffic patterns before they move a shelf. That changes the collaboration loop between merchants, store design, and operations. It also shortens the time from idea to execution.

“Digital twin enables planogramming, enables simulation of traffic in stores,” De Vigan said. “There’s a massive [set of] things that actually tie to retail’s strategic objectives for the next five years.”

Those objectives sound familiar to Canadian executives: deliver a differentiated omnichannel

experience, automate repetitive tasks, modernize the supply chain, and merchandise with greater precision. De Vigan frames them as four pillars that are “tremendously based on AI and physical AI,” all of which rely on precise data about products and environments.

Building the Dataset at Scale

If the models are the brain and compute is the muscle, data is the oxygen. That is the niche Nfinite has carved out by investing early in high-fidelity product capture and pipeline orchestration. The company says it has built the world’s largest library of retail-grade 3D assets and, more importantly, the ability to digitise any product catalogue at speed and at consistency levels that meet enterprise demands.

“The edge is not so much on the asset library itself, but its ability to basically digitize any type of product catalog very, very fast, at the highest level of accuracy on the planet,” De Vigan said. “We’ve created the best human-mechanized machine on the planet to generate digital twins for retail, at the best level of scale, quality, consistency, and realism.” Clients often require bespoke

capture because they need twins of their own assortments, he added. That means vendors must accept a wide range of inputs, from blueprints and BIM files to scans and video, then balance cost and fidelity against the intended use. “You do not want to have to spend a hundred thousand dollars on a digital twin,” he cautioned. “You need to find balance.”

Canadian Context and a Halifax Pilot

Canada is not on the sidelines. Enterprise banners here are testing and adopting component parts of the stack, even if not all initiatives are visible to the public. “Every big retailer is starting to use it,” De Vigan said of the Canadian market. “It’s just at different pace. It doesn’t mean it’s yet publicly available or in commercial use. But every single retailer is working in that direction.”

Smaller businesses are also experimenting. In Halifax, Rousseau Chocolatier worked with the David Sobey Retailing Centre at Saint Mary’s University to build a digital twin of its boutique and café, offering an immersive virtual shopping experience that mirrors the store environment online. The project underscores how the same core approach can support both enterprise automation and branded customer journeys, broadening access to customers beyond the local foot trade.

The Road to Physical AI

Looking ahead, De Vigan expects Physical AI to move from promising to pervasive. “If you believe the next revolution of AI is physical AI, then, in order to do that, you will need physical representation of environment and objects which are digital twins,” he said. He describes three pillars required for that future: compute power, advanced models, and data. “The data is going to be digital twins,” he added, arguing that a “very, very massive dataset of digital twins of both environments and products” will underpin robotics, autonomous transport and in-store systems.

That view aligns with how Canadian retailers are approaching capital planning. Investments in robotics and automation are now paired with data programmes to feed those systems. Facilities teams evaluate how building information models can be repurposed for retail operations. Merchants test layouts and pricing logic in simulated environments before deploying to fleets that stretch from Nanaimo to St. John’s. The emphasis is less on shiny demos and more on compounding, measurable gains.

Practical Steps for Canadian Retailers

For banners weighing where to begin, the path is clearer than it was even a year ago. Start by identifying a constrained process where higher fidelity data will make a difference, then pilot a targeted twin with quality thresholds matched to that outcome. Autonomous checkout and loss-prevention systems benefit from object-level detail and extensive training sets. Distribution centres gain from container, pallet and aisle models that

“If you believe the next revolution of AI is physical AI, then, in order to do that, you will need physical representation of environment and objects which are digital twins. The data is going to be digital twins.”

- Alexander de Vigan, Nfinite

can train navigation and manipulation policies. Store redesigns benefit from environment-level twins that test customer flow and conversion impacts before contractors arrive.

The implementation work remains non-trivial. Teams must align on ownership between digital, operations, and IT. Capture pipelines need to be documented and repeatable. Vendor selection should weigh a partner’s ability to ingest messy inputs and deliver consistent outputs at enterprise scale. Above all, the business case should be framed around risk reduction, faster iteration cycles and labour savings rather than innovation for its own sake. As De Vigan put it, “You need to find balance between the inputs you’re able to get and the outputs. We found a balance that enables [us] to be as lightweight as possible for the retailer.”

Where It Goes Next

The convergence of retail automation, computer vision and 3D data suggests the industry is heading toward more autonomous operations. It will not arrive all at once. Retailers will scale components where value is proven, link them to adjacent systems, then lift standards as confidence grows. In that sense, the story looks familiar. E-commerce matured through a series of incremental improvements before becoming table stakes. The same pattern is emerging for store and supply chain AI.

For Canadian retail leaders, the decision is not whether to pursue this path, but how to sequence it and with whom. Walmart has shown what a fully committed roadmap can look like, and that example will continue to shape investments north of the border. Vendors like Nfinite are competing to be the data backbones that support it. The result is a market where the winners will be those who turn precise, living 3D data into daily operational advantage.

In a period defined by tight labour markets, rising costs and high customer expectations, the calculus is straightforward. Digital twins give retailers a safer way to test, a faster way to learn, and a more reliable way to scale. That is why digital twins in retail are moving from innovation labs to boardroom agendas. It is also why the next wave of Canadian retail modernisation will be judged by how well banners transform product, store and supply chain data into a cohesive, spatially-aware operating model.

As De Vigan summed up, the cornerstone is still the product and its physical context. “At the end of the day in retail, the cornerstone is the product that you’re selling,” he said. “This is why digital twinning is very important.” For Canadian decision-makers, the message is equally clear. The brands that master the mechanics of high-fidelity 3D data will be best positioned to unlock the gains that Physical AI promises, from the distribution centre to the sales floor.

“In

2023, Canadians executed 21.7 billion transactions, totalling $11.9 Trillion.”

>>>Payments Canada’s 2024 Canadian Payments Methods and Trends Report revealed Canadians’ payment habits and penchant for transactions.

Robotics reshaping Canada’s retail supply chain

Canadian retailers embrace warehouse robotics to boost efficiency, cut costs and meet consumer demand in a tech-driven supply chain revolution >>

By Lee Rivett

Walk into a modern fulfillment center in Canada today and you might feel as though you’ve stepped into a science fiction set. Autonomous mobile robots zip between aisles, robotic arms deftly unload pallets, and sensors hum as data flows across networks. For Canadian retailers, this isn’t futuristic. It’s the present.

Across the retail industry, automation has moved from being a distant ambition to a core business strategy. Deloitte, Gartner, and McKinsey all point to warehouse robotics as a defining force in the next phase of retail supply chains, offering efficiency gains, labor flexibility, and resilience against disruptions.

And while these promises sound universal, Canadian retailers, from Walmart to Staples to Scholastic Canada, are already putting robots to work in distinctly local ways.

Deloitte’s Smart Factory Vision

In January 2023, Deloitte Canada unveiled The Smart Factory @ Montreal, a 9,000-square-foot

FEATURE // BRAND PROFILE

facility that doubles as the country’s first live smart warehouse environment. The facility is a showroom and a working ecosystem with over 20 advanced technologies, including robotics, AI, cloud systems, and digital twins.

Anthony Viel, CEO of Deloitte Canada, described the project as a national opportunity: “We believe that projects like this will fundamentally transform our economy and society and set Canada on a better path”.

The Smart Factory is already influencing Canadian retail leaders. By showcasing practical use cases from automated tote retrieval to goods-torobot unit picking, it helps executives visualize how robotics can bridge talent shortages, speed fulfillment, and ultimately meet customer demands for faster delivery.

Call out suggestion: “Projects like this will fundamentally transform our economy and society.” — Anthony Viel, Deloitte Canada

Walmart Canada’s Robotic Makeover

Few names resonate in Canadian retail like

“The integration of robotics and automation has allowed us to maximize our receiving volume while reducing the physical demand on our associates.”

- Anthony Viel, Deloitte Canada

Walmart. And in 2024, Walmart Canada announced a five-year modernization plan for its distribution centers, with robotics at its core. At its Calgary Regional Distribution Centre, an automated receiving solution now gets products off trailers and into the facility 90% faster than manual methods. For operations manager Joanne Hodder, the change has been more than technological. “It’s been so exciting to work alongside this new technology,” she said. “The integration of robotics and automation has allowed us to maximize our receiving volume while reducing the physical demand on our associates. It’s made our day-to-day work better”.

Behind the scenes, the retailer is deploying robotic depalletizers, case-label applicators, and fleets of autonomous mobile robots. The goal: to make two-day shipping a reliable promise for 97% of Canadian households.

Call out suggestion: “It’s made our day-to-day work better.” — Joanne Hodder, Walmart Canada Staples Canada: A People-First Automation Story Not all automation stories are about speed alone. At Staples Canada, the focus has been on aligning technology with people. When Mert Selcuk, Senior Manager of Supply Chain Strategy, joined the team, his first challenge was cultural: shifting a decades-old network from “pen and paper” toward robotics.

Selcuk urged against chasing trends. “The automation landscape is exponential—it’s not linear,” he explained. “If you’re reading about a technology on a whitepaper, you’ve probably already missed the window of opportunity”.

Staples found its solution in Autonomous Mobile Robots (AMRs). By adopting a Robotics-as-a-Service model, the retailer avoided heavy capital costs and scaled flexibly. The real win, however, was staff buy-in. Associates helped design proof-of-concepts, making automation something done with them, not to them. When one associate commented mid-shift that

the day felt “slow,” only to discover the team had already hit its average volume target, the benefits became tangible.

Scholastic Canada: Robotics in Publishing

Even the publishing sector is embracing robotics. Scholastic Canada partnered with inVia Robotics to optimize its Mississauga fulfillment center . By introducing robotic picking systems, Scholastic improved order accuracy while reducing strain on its warehouse staff—a reminder that automation isn’t only for mega-retailers but also for niche industries like book distribution.

Sobeys and the Ocado Pause

Of course, not all automation stories are smooth. In 2024, Sobeys, through its partnership with UK-based Ocado, hit the brakes on expanding automated warehouses. The pause highlights a critical truth McKinsey stresses: without clear strategy and alignment, warehouse automation projects risk under-delivering.

Sobeys’ experience is a cautionary tale that while the promise of robotics is bright, the road requires discipline, planning, and patience.

Global Insights: Gartner and McKinsey Warnings

Gartner’s research underscores just how fast robotics adoption is accelerating. Analyst Dwight Klappich predicts that by 2027, more than 75% of companies will have adopted some form of cyber-physical automation. Yet he also warns that organizations must plan carefully to avoid fragmented solutions. Multi-agent orchestration platforms, he argues, are key to managing fleets of robots from different vendors efficiently.

McKinsey adds another layer of caution. While automation projects are booming, too many fail due to lack of vision and misalignment. Their recommendation: start with clear business needs, ensure leadership understanding, and build strategies that allow phased investment and scalability.

Call out suggestion: “By 2027, more than 75% of companies will have adopted some form of cyber-physical automation.” — Dwight Klappich, Gartner

The Canadian Edge

The real differentiator in Canada’s automation story may be balance. Walmart and Staples are proving that automation can be people-led, not people-replacing. Deloitte is ensuring Canadian firms have access to world-class expertise without leaving the country. And case studies from Scholastic and Sobeys show both the promise and pitfalls of the journey.

At its core, warehouse robotics in Canada is about strengthening supply chains, empowering workers, and helping Canadian retailers compete globally in an era where delivery speed is as important as product selection.

Conclusion: Robots With a Human Touch Automation is no longer optional in retail supply chains – it’s strategic necessity. As Deloitte’s Montreal hub, Walmart’s Calgary pilot, and Staples’ collaborative rollout show, Canadian retailers are stepping confidently into the robotic future. And while the machines may do the lifting, the true weight of success rests on how companies integrate technology with people. In the end, the story of warehouse robotics in Canada is not about robots replacing humans, but about robots working alongside them – faster, smarter, and stronger.

“Canada accounted for 7.5% of the global IoT devices market in 2024.”

>>> Grand View Research revealed that Canada’s share of the global IoT device market continues to grow.

Aperture launches to help worldwide optimize

Aperture, co-developed in Canada, gives retailers worldwide geolocation and AI markets and boost marketing efficiency // By Craig

Patterson

help retailers optimize data

Anew technology platform designed to help retailers and businesses worldwide unlock the power of data has launched. Aperture, co-developed by Canadian entrepreneur David Nagy, co-founder of the company and CEO of eCommerce Canada, is being hailed as a game-changing solution for businesses looking to better understand customers, expand into new markets, and optimize spending.

“You’ve got data. Put it into action,” says Nagy. “This tool very quickly and very cost-effectively makes sense of it all. Aperture gives businesses the ability to see who their customers are, find more of them, and spend their marketing dollars in the right places.”

Aperture is a sophisticated visualization and analytics platform that collects, organizes, and plots data on interactive maps. By combining first-party customer data with over 400 million household and 70 million business data points across North America, the platform helps companies uncover hidden opportunities and act on

FEATURE // BRAND PROFILE them quickly.

“What makes Aperture special is its ability to plot geolocations so businesses can literally see what’s happening,” Nagy explains. “The first thing it helps you do is understand your current customer based on your own first-party data. Then it helps you find more people just like them. Finally, it helps you optimize sales and marketing efforts so you’re focusing on the areas that really matter.”

This approach is valuable for retailers and brands seeking growth internationally. Rather than blanket spending across entire countries or regions, Aperture allows for highly targeted campaigns at the city, neighbourhood, or even micro-market level.

Geolocation Mapping for Expansion and Growth

Aperture’s platform integrates geographic information systems (GIS) with demographic, behavioural, and commercial datasets. This allows businesses to answer three critical questions:

1. Who are my customers?

2. Where are more customers like them?

3. How do I reach them more efficiently?

Nagy highlights how Aperture can uncover underserved markets. “Sometimes your best customers aren’t in the biggest cities,” he says. “They might be just outside those major centres in B or C markets where competition is lower. Aperture helps you see those opportunities clearly.”

This capability is particularly powerful for brands exploring new territories, whether entering the U.S. from Canada, expanding across Europe, or targeting emerging markets in Asia or Latin America.

Real-World Applications and Cost Savings

Aperture has already been deployed in large-

scale projects across multiple industries. Nagy shares the example of a major U.S. digital retailer spending over $140,000 per month on media. “By mapping their customers and micro-markets, we were able to cut significant waste from their campaigns,” he says. “They’re saving tens of thousands of dollars every month.”

Importantly, the solution is not just for enterprise-level players. Aperture pricing starts at $99 per month, allowing small and mid-sized businesses to access the same level of insight as global brands.

Customer Profiling and Lookalike Targeting

Aperture draws on more than 300 attributes per household, including education level, family structure, housing type, and even behavioural data tied to weather events. This allows businesses to create detailed customer personas and locate similar audiences anywhere in North America.

“Once you understand who is already buying from you, Aperture helps you find more of those same people,” Nagy explains. “It’s about building lookalike audiences and then using the data to locate them geographically.”

This approach benefits omnichannel retailers managing both physical stores and e-commerce operations, as it enables more precise segmentation and more efficient allocation of marketing spend.

Streamlining Processes and Increasing Efficiency

Beyond marketing, Aperture can support business process optimization. By narrowing the focus of sales teams and other resources, the platform improves efficiency and helps businesses avoid wasting time in low-potential markets.

“Out of this gigantic market that you can tap into, Aperture gives you a very narrow lens to work within,” Nagy says. “It helps you get to the right

customer faster, which is critical for businesses with small teams or limited budgets.”

In other industries, Aperture has been used to power real-time dispatch systems and logistics planning — further proof of its flexibility and scalability.

Enterprise-Grade Security and Global Scalability

Aperture was built with enterprise-level security and compliance in mind. It features end-to-end encryption, role-based access controls, and SOC 2 Type II and ISO 27001 certifications, making it suitable for highly regulated industries worldwide.

Its flexible architecture allows for deployment at any scale, from independent retailers to multinational corporations with operations across several continents.

Positioning for Global Growth

While co-developed in Canada and the United States, Aperture’s target audience is global. And Nagy sees an opportunity for businesses of all sizes and formats to benefit from the use of this technology.

“Whether you’re a boutique retailer in Paris, a fast-growing chain in São Paulo, or an e-commerce giant operating somewhere in California, Aperture can help your organization understand your markets better and compete more effectively,” he says.

With Aperture now available, businesses around the world can put their data to work. “Your data is valuable, but only if you use it,” Nagy emphasizes. “Aperture makes it easy to get started, easy to see results, and easy to adjust as your business grows.”

// By Mario Toneguzzi

predictive tech and uncertainty

In a world where unpredictability has become the norm, retailers are adapting with tech-first strategies to navigate everything from trade wars and tariffs to inflation and supply chain issues. “Retailers almost live in a constant state of uncertainty,” says Mikhail Ishkhanov, Senior Director of Product Strategy and Sales Enablement at SOTI. “Now it’s tariffs, but over the past five years we’ve also had inflationary pressures, decreased consumer purchasing power, supply chain disruptions, and staffing challenges.”

With retail being a major focus area for SOTI, the Mississauga-based company is seeing technology play a key role in helping businesses manage one of their biggest pain points: inventory.

“When it comes to inventory we’re seeing retailers embrace predictive analytics,” says Ishkhanov. “That falls under the broader AI umbrella, but for me, the focus is on how predictive analytics help retailers manage just-in-time inventory. That means reducing holding costs while still having the right products at the right time, based on historical shopping data and consumer trends.” Ishkhanov emphasizes how this becomes even

“Whether you’re a small, medium or global-scale retailer, you have to start with a solid technology foundation. If you don’t have the right technology to manage everything... you won’t have the visibility you need.”

- Mikhail Ishkhanov, SOTI

more critical at scale. “Take the LCBO, for example. A small rural store several hours outside the city will need a completely different inventory strategy compared to a downtown flagship location. But both need real-time insights to manage inventory effectively.”

The right tools, he says, enable centralized and real-time inventory management—ensuring shelves are stocked and counts are accurate. But what about smaller retailers who don’t have the same scale or infrastructure?

“Whether you’re a small, medium, or global-scale retailer, you have to start with a solid technology foundation,” says Ishkhanov. “If you don’t have the right technology to manage everything— from warehouse to front-of-house or stockroom to shelf—you won’t have the visibility you need.” One advantage smaller retailers can leverage, he

adds, is personalization. “We recently released a report showing that nearly 70% of Canadian consumers now prefer personalized, recommended shopping experiences.”

That kind of experience often comes from knowing your customer—and having the tools to act on that data. “Smaller retailers can partner with influencers or launch specialty products that become trends, helping them reach a targeted clientele,” says Ishkhanov. “But again, you need the technology to provide that personalization— tracking what’s selling, when it’s selling, and gaining insights from consumer data.”

He offers a firm reminder: “You can’t make good decisions off bad data. So all those systems— point-of-sale, self-checkout, warehouse scanning—must be connected. Otherwise, you’re just guessing.”

And with consumers increasingly tethered to their phones, retailers must adapt to a mobile-first world.

“The mobile device is now the primary way consumers engage with retailers,” he says. “Consumers want convenience, whether shopping in-store or online—but especially online, that experience has to be seamless. Security is also a major concern: ‘Do I trust this site with my data?’”

He continues: “The retailers that create a smooth, secure, omnichannel experience—recognizable both online and in-store—are going to win. Consumers now expect real-time visibility into their orders. Think of food delivery: we want to know exactly where our order is and how long it’ll take. That’s becoming the standard in retail, too.”

Another major shift is the rise of social commerce—buying directly through platforms like TikTok and Instagram—almost entirely driven by mobile.

“So, for retailers, particularly brick-and-mortar

ones, embracing mobile and omnichannel is key to building brand loyalty and keeping consumers engaged,” he notes.

Ishkhanov offered one more example, this time on the employee side of the mobile revolution.

“We worked with a company called Tractor Supply Company. They developed an AI-based employee assistant . . . This assistant gives employees real-time product info, inventory levels, and brand messaging,” he says.

“So even a new employee can help a customer with confidence—just like someone who’s been there five years. It empowers the associate to deliver a much better, more personalized experience.”

As Ishkhanov puts it, “This is where technology shines: from warehouse to front-of-house, it supports the entire retail process. And that employee empowerment piece is becoming more and more important across the industry.”

AI revolutionizing retail

Cognizant’s Scott TumSuden on tackling labour challenges with technology // By Mario

Toneguzzi

Staffing issues continue to plague the retail industry, but Scott TumSuden, VP and Head of Retail Strategy and Growth Acceleration at Cognizant, believes the sector is on the brink of a transformation — one that’s being accelerated by the rise of generative AI and automation.

“Staffing in general in retail is a perennial problem,” TumSuden said in a recent conversation. “There’s about 60% annual turnover in most retail businesses and ultimately, that yields a lot of waste and inefficiencies.”

TumSuden explains that this constant churn leads to a “flywheel effect” of added costs and operational drag.

“When you have turnover, you have inefficiencies. You have a lot of waste, you actually add extra cost, right? Because then you’re having to retrain people, you’re having to research people, you know, you have to rehire people.”

But while staffing challenges are hardly new in the industry, TumSuden is optimistic that today’s technological advancements could mark a turning point.

“I actually think we’re on the dawn of a new age finally,” he said. “There are some opportunities to change that with the way that technology’s evolving — and generative AI in particular — to help address the churn, which then helps to address the efficiency, which then helps to address the usage of labour and making labour and workforces more effective.”

As AI capabilities mature, TumSuden sees them playing a vital role in reshaping not just roles, but entire operating models. “There are certain jobs that will be hopefully eliminated,” he said, noting the potential to phase out “low-end, highly automatable, highly mechanical jobs” — many of which are already being handled by tools like chatbots in customer service.

But it’s not just about elimination. TumSuden sees generative AI enhancing customer-facing and operational roles as well.

“You can actually provide better service because the generative AI can leverage all the data and the information about what products are relevant substitutes and probably be more knowledgeable than an individual associate.”

He points to the common “buy online, pick up in store” model as an example of a task that’s ripe for reimagining and reinvention.

“You have a store associate picking and packing orders off the shelves during business hours when they could be servicing a customer,” he said. “They are servicing a customer because they’re picking and packing that order. But the reality is that they’re actually not — they’re doing a routine task.”

While robotics may eventually handle the physical work of picking products, generative AI already offers near-term solutions. “You can leverage the technology to figure out more efficient ways to pick and pack,” TumSuden said. “You can

organize your stores maybe in a different way.” That reorganization, he noted, could even challenge the longstanding practice of placing high-demand items in store corners to increase browsing. “You can say, ‘Hey, I’m gonna hit you with a little popup, ’cause the beacon on your phone says I know you’re here…’ and I can actually lay out my store in such a way that it’s actually more engaging.”

According to TumSuden, this shift frees up associates to focus on higher-value activities: “Ultimately in our mind, the goal is to free up your store associates so they can spend more time on servicing customers and less time on those complex tasks.”

The integration of generative AI also brings transformative potential for workforce support and development — two key levers in combating high turnover. “One of the things is how do you get help if you’re a store associate and you have a problem in the store?” he said. “What happens today is that’s a very painful process a lot of store associates have a bunch of different apps.”

TumSuden says Cognizant is already working

with clients and partners to build agent-based systems that simplify problem-solving for frontline staff. “We see the world evolving to a single app and talk to an agent that can help them with solving that problem. Which makes their experience better and also creates a better roll through customer experience.”

Training, he added, is another overlooked area ripe for disruption. “Training is something that really hasn’t evolved in decades. If anything, it’s gotten worse,” he said. “But if you think about it, with synthetic AI and with generative AI, you can actually build more bite-sized customized training.”

He sees “a big unlock” coming in onboarding and upskilling, where AI can support a more efficient and enriched learning journey for new hires. “Once they’re up to speed leveraging agents to actually help them solve problems when they occur that is a huge transformation in the workforce.”

Despite ongoing fears about AI replacing humans, TumSuden takes a more nuanced view. “I don’t think I believe — or we believe — that

we’re gonna see a decline in the retail workforce,” he said. “I really do believe that what’s going to happen is there’s a bit of a renaissance. Retailers see that the real value that they bring to the table versus a brand is they bring that customer intimacy and that’s where they differentiate.”

And that differentiation, he says, is precisely what retailers should be leaning into, with the help of technology finally mature enough to support it.

Cognizant, which operates globally and has a strong presence in the Canadian market, is already seeing these trends take hold across borders. “We work with a number of large customers in Canada,” TumSuden said, mentioning names like Canadian Tire and Circle K. “We’re seeing similar trends. They’re just manifesting in a slightly different sequence because of the local market dynamics.”

As generative AI and automation become more deeply embedded in retail operations, TumSuden sees one thing as clear: the associate of the future is not going away - they’re just going to be more empowered, more supported, and more essential than ever.

AI-powered virtual agents transform Canadian retail

AI-powered virtual agents are reshaping Canadian retail with instant, personalized support and frictionless shopping experiences // By Craig

Patterson

Not long ago, chatbots were clunky little scripts that could only answer a handful of FAQs. If you asked the wrong question, you’d hit a wall. Fast forward to today, and AI-powered virtual agents are rewriting the rulebook. Backed by advances in natural language processing and large language models like GPT-4, these digital assistants now understand context, anticipate needs, and hold conversations that feel surprisingly human.

PwC describes the shift clearly: “AI-powered customer engagement is undergoing a significant transformation. First, chatbots changed the game and now AI-powered agents have introduced a whole new rulebook”. In other words, the stakes have changed. Retailers that once relied on scripted chatbots to save costs now see intelligent agents as tools to deepen relationships, boost

sales, and streamline operations.

Call out suggestion: “From scripted bots to smart agents: AI is no longer about answering questions—it’s about shaping experiences.”

Case Study: Canadian Tire’s Tireless Helper

Erin Gates, a Calgary mother of four, was overwhelmed when trying to pick winter tires for her minivan. “It immediately showed me three different kinds of winter tires and different prices and then it told me how many were in stock at my store. I loved that it was so conversational, like I was talking to another person at the store who knew a lot about tires”.

Her helper? Not a store associate, but CeeTee, Canadian Tire’s AI-powered shopping assistant.

Launched in 2024 and developed with Microsoft using GPT-4, CeeTee engages customers through voice or text in the Canadian Tire app. It doesn’t just list products—it compares them, checks stock, and offers personalized recommendations. Ilana Santone, Senior Vice President of Digital and Connected Retail at Canadian Tire, put it bluntly: “We looked at the big friction points across the journey and then looked at ways to either remove friction or support customers instore and online. Gen AI presents the opportunity to do this differently, or even better”.

That effort is paying off. In just months, nearly 10,000 users logged over 700,000 chat sessions. For customers, the process of buying something as technical and high-stakes as tires suddenly feels less intimidating and more personal. Call out suggestion: “CeeTee logged 700,000 chats in its first months—proof that shoppers are ready to talk with AI.”

Mastermind Toys: Digital Wonder Meets Human Play

Canadian specialty retailer Mastermind Toys faced a different challenge: how to bring its instore magic online. Known for its “Play Experts,” the company turned to Shopify Plus and live chat to recreate that high-touch experience in the digital space.

Kieran Shanahan, Vice President of Digital and Customer Experience, explained: “Shopify Plus is the foundation for our future: a new digital ecosystem purpose-built to bridge the gap between the physical and the digital experience”.

The results were dramatic. Online sales tripled, conversion rates jumped by 286%, and the number of customers served via chat grew 288%. For parents browsing late at night or grandparents ordering last-minute gifts, the ability to instantly chat with an associate – or with an AI-enhanced chatbot – meant convenience didn’t have to come at the cost of connection.

What Customers Really Want

Surveys confirm that Canadians are increasingly comfortable with AI in retail. Canada Post’s 2023 eShopper Diary found that nearly two-thirds of Canadian shoppers had already interacted with a chatbot while shopping, and 62% appreciated the instant support it provided.

When it comes to AI-powered virtual agents, the value lies in immediacy. As one Shopify analysis noted, “72% of consumers want immediate service from businesses, and some 64% will spend more if issues are resolved where they already are”.

That demand spans every corner of retail:

- Shoppers want real-time product availability. - They expect quick order tracking without digging through emails.

- And increasingly, they’re open to personalized product suggestions generated by AI.

Beyond Support: Sales and Marketing Potential

The most advanced retailers aren’t stopping at customer service. They’re deploying AI-powered agents to handle sales and marketing too.

Consider Aveda’s AI booking chatbot, which drove a 378 per cent increase in users and boosted bookings nearly eightfold in just seven weeks. Or Lego’s “Ralph” chatbot on Facebook Messenger, which quickly became responsible for 25 per cent of Lego’s social sales and delivered conversions 8.4 times more effective than Facebook Ads.

The numbers are eye-catching, but the strategy is simple: meet customers where they already are –on messaging apps, in search windows, and even on smart speakers.

Call out suggestion: “Lego’s chatbot drove 25% of its social media sales—AI isn’t just answering questions, it’s closing deals.”

Efficiency Behind the Scenes

The customer-facing benefits are only part of the story. Behind the curtain, AI-powered virtual agents help retailers cut costs and boost efficiency. IBM data cited by Shopify suggests conversational AI can reduce cost-per-contact by nearly 24%. Canadian Tire saw similar gains when it built ChatCTC, an internal chatbot that saves 4,300 corporate employees up to an hour a day by summarizing documents and automating routine tasks. PwC emphasizes that autonomous agents aren’t just for customers; they also “provide internal support to employees by rapidly retrieving information across systems, automating routine tasks, and assuring consistency”.

The Balance: AI and the Human Touch

Still, industry experts caution against going allin on automation. Sudip Mazumder of Publicis Sapient notes: “Human touch is crucial in retail. If you become too overdependent on AI, your customer experience could look really sterile”.

That’s why most successful retailers use virtual agents to handle routine queries, while making it easy for customers to connect with a human when needed. As Shopify advises: “Always display a ‘talk to a person’ button…so customers never have to repeat themselves”.

Looking Ahead

As adoption spreads, one thing is clear: the use of AI-powered virtual agents in Canadian retail is no longer a novelty—it’s an expectation. From tire shops to toy stores, from luxury brands to everyday ecommerce, the technology is becoming central to how retailers deliver convenience, speed, and personalization.

The challenge now? Ensuring that as the agents get smarter, the experience stays human. Or as Canadian Tire’s Santone put it, “This is really about how we look at the tire journey end to end and remove the friction…After all, we’re Canadian Tire. If we can’t solve the tire journey, who will?”.

Personalization and predictive analytics transforming

Retailers harness AI and predictive analytics to deliver personalization at and efficiency // By Craig Patterson

predictive transforming retail

In1937, Canadian Tire clerks laced up roller skates to speed up catalog orders. Nearly a century later, the retailer’s race to anticipate its customers is powered not by wheels, but by artificial intelligence.

Canadian Tire recognized that it already possessed the customer data needed to accelerate its business growth. The company focused on developing more advanced capabilities to sort, request, and provide access to specific data sets, enabling its business leaders to drive expansion within their respective areas of the enterprise.

Retailers today are not just keeping pace with consumer demand. They are trying to predict it. Advances in personalization and predictive analytics are transforming how stores engage with shoppers, turning once-blunt promotions into finely tuned recommendations and customized offers. The winners in this shift are seeing double-digit revenue growth compared to those lagging behind.

Call out suggestion: “Personalization leaders in retail are growing revenue 10 percentage points faster than laggards, according to BCG.”

From Mass Promotions to Precision Offers

For decades, retail strategy was defined by mass tactics. Flyers, television spots, and seasonal discounts drove traffic, but rarely spoke to individuals. Today, data-driven marketing has rewritten that script. at scale,boosting laoyalty, sales

McKinsey notes that 71 percent of consumers now expect companies to deliver personalized interactions, while 76 percent get frustrated when it doesn’t happen. The stakes are high: shoppers who feel seen and understood are more likely to buy, return, and stay loyal.

“From what we’ve observed, companies that push incremental sales through targeted promotions can see a 1 to 2 percent lift in sales and a 1 to 3 percent improvement in margins,” McKinsey’s report observed. In an era of slim retail margins, that lift is more than incremental — it is decisive.

The Canadian Tire Case Study

Canadian Tire’s data journey illustrates how legacy retailers can reinvent themselves with modern analytics.

EY consultants helped the company overhaul its customer data architecture, moving from a centralized system to a decentralized “data mesh.” The overhaul included recruiting nearly 100 new data scientists and building a collaborative innovation lab.

The payoff is already visible. Using Microsoft’s Power BI, business units across Canadian Tire can now evaluate product performance by SKU and adjust promotions accordingly. The company’s loyalty platform, Triangle Rewards, leverages real-time insights to match products with buyer

patterns, offering tailored deals across digital channels.

“Data management is of paramount importance to large retailers like this,” said David McQueen, EY Canada’s managing partner for consulting. “We need to bring the strength of experience and current knowledge to get their data models right”.

Call out suggestion: “Canadian Tire hired nearly 100 data scientists to embed analytics into its retail strategy.”

The Role of Predictive Analytics

If personalization answers the question of “what now,” predictive analytics takes aim at “what next.”

By analyzing transaction histories, browsing patterns, and even real-time signals, retailers can forecast demand and shopper behavior.

Deloitte’s Retail Trends 2025 report identifies personalization at scale as a key driver of loyalty this year. Curated recommendations, seamless journeys, and predictive demand planning are no longer cutting-edge experiments – they are becoming standard operating practice.

Oliver Vernon-Harcourt, Deloitte’s UK retail lead partner, put it bluntly: “Success in 2025 feels like it will need bravery and boldness to cut through the noise and stand out from the crowd”. Predic-

tive analytics gives retailers the courage to act boldly, backed by data rather than instinct.

Personalization at Scale

The Boston Consulting Group has quantified the stakes. Its Personalization Index found that personalization leaders in retail are growing 10 percentage points faster than their peers. The firm estimates that $570 billion in incremental growth will accrue to retail leaders who master personalization by the end of the decade.

Yet many companies are still deciding to invest less than 5 percent of their promotional budgets in personalized offers. That gap between leaders and laggards suggests enormous untapped opportunity.

Woolworths, the Australian grocer, scaled personalized offers through its Woolies X data science platform, boosting returns from promotions and engagement in loyalty programs. Others, like Sephora, are investing heavily in generative AI to orchestrate personalization across both digital and physical stores.

Generative AI: The New Creative Engine

Personalization once meant hand-coded emails or segmented discount lists. Today, generative AI is rewriting marketing at scale.

McKinsey reports that some marketers deploying gen AI can personalize content development 50 times faster than traditional methods. This means not only recommending a product, but also serving the right imagery, copy, and even tone to match a customer’s profile.

But speed comes with caution. “As organizations increasingly use gen AI, it is critical that they build models to validate and govern gen AI–created content in order to establish guardrails against bias, toxicity, and hallucinations,” the report warned.

Retailers are beginning to balance efficiency with ethics, recognizing that trust is just as critical as accuracy.

Retail Media and the Data Flywheel

Another byproduct of personalization is the booming business of retail media. By using their first-party data to sell advertising space, retailers like Walmart, Target, and Amazon are creating lucrative new revenue streams.

BCG estimates the retail media business is growing at a rate of 25 per cent annually and could surpass $100 billion worldwide by 2026. Gross margins in excess of 85 per cent make it one of the most profitable businesses a retailer can operate.

In this model, personalization, loyalty, and media form a self-reinforcing flywheel: data drives advertising, advertising funds data investments, and better personalization strengthens loyalty.

The Road Ahead

TIt’s important to note that the push toward personalization and predictiveness is not optional. It’s becoming the price of admission in a hyper-competitive retail landscape.

Still, barriers remain. Data privacy regulations, rising expectations from consumers, and the high cost of technology investments all weigh heavily. Even so, the consensus among analysts is that the cost of inaction is higher.

As Canadian Tire’s journey shows, legacy retailers can transform with the right mix of strategy, investment, and cultural change. The roller skates of 1937 may be a charming memory, but in 2025, data is the new speed.

Call out suggestion: “Predictive analytics is no longer an experiment — it is retail’s new standard.”

The first AI-assisted holidayseason: How retailers can win in 2025

// By Arun Qamra, Sr. Director of Clarity, Bloomreach

For decades now, retailers have navigated holiday shopping seasons shaped by changing consumer behaviour and new technology. But 2025 marks a turning point: this is the first holiday season where artificial intelligence (AI) will play a central role in how consumers will prepare, shop, and make purchases.

This shift is not theoretical. Consumers are already adopting AI shopping assistants, experimenting with conversational agents, and expecting more from retailers in terms of speed, personalization, savings. Our recent survey of 1,032 U.S. consumers found that nearly half expect AI to help them find better value, while 43% plan to use AI for shopping preparation this year.

The question for retailers during the 2025 holiday season is not whether AI will matter, it’s how they make sure they’re ready.

Why 2025 Is Different

Every holiday season brings hype around “what’s new.” But the difference this year is the scale and accessibility of AI tools. Unlike in 2023 and 2024, when most AI activity was still exploratory, this season, shoppers are approaching Black Friday, Cyber Monday, and the December rush with AI in their pocket, through search engines, shopping apps, and conversational agents.

This isn’t just about efficiency. AI is becoming a shopping companion. It helps consumers compare deals, suggest gift ideas, and even calculate “value scores” for purchases. As a result, retailers face a more discerning, AI-informed shopper who expects brands to keep up.

New Consumer Mindset: Value, Not Just Speed

Much of the early conversation about AI focused

on speed: how quickly a chatbot could answer a question or how fast a recommendation engine could respond. But the 2025 holiday shopper wants more than speed; they want value.

In our recent survey, 42% of US consumers said they expect AI to help them save at least 15% on holiday spending. Nearly half said they see AI as “very helpful” in finding better deals.

For retailers, this means discount strategies and promotional calendars will be under tighter scrutiny. A poorly timed sale or generic promotion will not be enough if AI-enabled shoppers are armed with price intelligence and deal alerts that show them better options elsewhere.

Loyalty in 2025 will hinge less on blanket promotions and more on smart, AI-enhanced personalization that delivers the right deal to the right customer at the right moment.

Where Retailers Are Falling Short

While AI is making inroads, consumers are not fully satisfied. A third say they want more personalization from AI, 30% want better price alerts, and nearly a quarter want fewer irrelevant suggestions.

This highlights a gap: consumers are willing to trust AI to enhance their shopping, but the current tools often disappoint. That’s both a warning and an opportunity for retailers.

Those who can fix the pain points, by delivering relevant recommendations and conversational experiences that feel human, will stand out in the crowded Q4 marketplace.

Generational Divide

One of the starkest shifts this season will be generational. Gen Z is three times more likely than Boomers to use AI shopping tools. That divide will shape how marketing dollars are spent and

which channels matter most in Q4.

- Gen Z and Millennials expect real-time engagement, personalized discounts, and interactive digital experiences. They are comfortable with conversational AI agents guiding their shopping journey.

- Boomers and older Gen X remain more hesitant. They may lean on traditional promotions, retailer websites, and in-store interactions, with AI playing a minimal role.

For retailers, this presents a new layer of complexity: marketing campaigns must be designed not just by demographic, but by where each age group falls on the AI adoption curve. General nonspecific messaging will quickly lose relevance.

Conversational AI in Holiday Shopping

Perhaps the most transformative force this holiday season will be conversational AI agents. Shoppers no longer just browse websites or click through recommendation grids—they ask questions, get advice, and interact with digital agents that guide them through the path to purchase.

This is where solutions like Bloomreach Clarity

Shoppers no longer just browse websites or click through recommendation grids - they ask questions, get advice and interact with digital agents that guide them through the path to purchase.

are setting the pace for conversational agents to guide customers through complex catalogs, answer real-time product questions, and surface personalized promotions, all in natural language. Instead of leaving consumers to navigate endless menus or irrelevant results, these agents meet them where they are by providing the kind of AI-powered “shopping assistant” experience that survey data shows consumers now expect. For retailers, this technology not only improves conversion rates but also builds brand trust.

Preparing for the AI Holiday Party

So how should retailers prepare for this holiday season’s AI-driven dynamics? Three priorities stand out:

1. Audit Your Personalization: Generic recommendations won’t cut it when AI-savvy shoppers expect precision. Retailers should ensure recommendation engines and promotional strategies are tuned to deliver hyper-relevant offers.

2. Lean Into Value Intelligence: If consumers are looking to AI for savings, retailers must anticipate this. Highlighting best-value bundles, trans-

parent pricing, and loyalty-linked discounts can keep shoppers engaged.

3. Deploy Conversational AI Agents: Tools like Bloomreach Clarity give retailers a scalable way to meet consumer expectations for human-like, personalized interactions—without overwhelming customer service teams.

Last Big Takeaway

The holidays won’t just be bigger or earlier. It will be fundamentally different, because AI is integral to the consumer’s decision-making process.

For retailers, this season represents both a challenge and an opportunity. Brands that ignore AI risk losing to competitors who offer smarter, more personalized, more value-driven experiences. But those who embrace AI, particularly conversational AI agents, have the chance to delight shoppers in new ways and capture loyalty during the most competitive quarter of the year.

The AI holiday party is going to happen. The question is whether retailers will be a guest, or the host.

“66% of Canadians have tried generative AI — yet only 6% of firms used it in 2024.”

>>> According to surveys conducted by Nucamp, an estimated two-thirds of Canadians have tried generative AI.

Don’t ditch search: how to blend search and chat for better commerce

// By Vikas Jha, VP of Conversational Commerce, Bloomreach

The conversational commerce revolution is no longer coming—it’s here. Today’s consumers expect to interact with brands through natural dialogue, whether they’re discovering products, comparing options, or resolving post-purchase questions. But as ecommerce leaders rush to implement conversational tools, many are making a fundamental error that could undermine their entire customer experience strategy.

The mistake? Treating conversational interfaces as standalone solutions rather than extensions of robust search and personalization engines.

Closing the Intelligence Gap

Most conversational tools in the market today are sophisticated chatbots—impressive in their ability to understand natural language but limited in their capacity to deliver meaningful, contextual responses. They can parse what a customer is asking, but they struggle with the far more com-

plex challenge of knowing what to recommend, when to recommend it, and why.

This is where search engine integration becomes critical. When a customer asks, “I need running shoes for someone with flat feet who runs on pavement,” they’re not just making a query— they’re expressing a complex set of parameters that require sophisticated matching.

Smarter Conversations, Ecommerce Intelligence

Deep search integration means your conversational tool can integrate with existing search product feeds that are already optimized for ecommerce search and merchandising. The same advanced algorithms that power your site’s product discovery: semantic search capabilities, personalization engines, and real-time inventory management, are what make those conversations stronger and more personalized. Without this foundation, conversations become shallow—of-

fering generic responses instead of the tailored, intelligent assistance that modern consumers expect. Additionally, the recall and ranking algorithms are fine-tuned for performance. All of these features allow for a high-quality search experience that will drive substantial revenue. Consider the difference: a basic conversational tool might respond to the running shoe query with a list of popular athletic footwear. A search-integrated system can factor in orthotic compatibility, surface-specific tread patterns, customer reviews mentioning arch support, current promotions, and even local store availability for try-ons.

Why Smart Conversations Mean More Revenue

The implications extend beyond customer satisfaction. Conversational experiences backed by robust search engines demonstrate measurably higher conversion rates, larger average order values, and improved customer lifetime value. They also generate richer behavioral data, since natural language interactions reveal customer intent more clearly than traditional click patterns. Our customer, TFG, one of the largest fashion, lifestyle, and specialty retail groups in South Africa, had a 39.8% increase in revenue after implementing Clarity, our conversational product.

Perhaps most importantly, integrated systems scale more effectively. As your catalog grows and customer expectations evolve, the underlying search intelligence adapts automatically, ensuring your conversational experiences remain relevant and valuable.

The Hidden Value

Beyond immediate customer benefits, conversational commerce creates an entirely new data stream that traditional ecommerce analytics can’t capture. Every natural language interaction reveals customer intent, preferences, and knowledge gaps in ways that click-stream data simply cannot match.

Conversational intelligence flows back into the business in three critical ways. First, it enhances your existing catalog data. When customers consistently ask about specific product attributes or use cases, you’re gaining real-world insight into how your products are actually perceived and used. Second, it enriches customer profiles with behavioral context that goes far beyond purchase history, revealing the thought processes and decision criteria that drive buying behavior. Third, and perhaps most strategically, it identifies systemic gaps in your customer experience.

When multiple shoppers ask the same question about sizing, compatibility, or use cases, you’re not just seeing individual customer needs— you’re uncovering opportunities to address information gaps through enhanced product descriptions, new filtering options, or additional content. This intelligence transforms reactive customer service into proactive experience optimization, contextualizing your data and ensuring that both your conversational and traditional ecommerce experiences are constantly improving.

Making the Right Choice

For ecommerce leaders evaluating conversational commerce solutions, the integration question should be paramount. Ask potential vendors not just about their natural language processing capabilities, but about their search engine partnerships, their ability to access real-time product data, and their track record in delivering contextually aware recommendations.

The future of ecommerce lies in conversations that feel genuinely helpful rather than artificially intelligent. That future requires treating search and conversation not as separate technologies, but as integrated components of a unified customer experience strategy.

The companies that understand this distinction today will define the conversational commerce landscape of tomorrow.

Canadian retailers catching up fast in in-store media

// By Mario Toneguzzi

Asretailers across the globe ramp up investment in retail media, Canadian grocers and merchants are moving quickly to close the gap, particularly when it comes to integrating instore digital solutions. That’s according to Sean Cheyney, Head of Retail Media at Vistar Media, a global leader in digital out-of-home (DOOOH) technology.

Vistar Media recently launched a new study exploring the trends shaping the future of instore retail media, and the consumer sentiment towards it.

Key figures include:

- In the US, 96 per cent of consumers have a positive or neutral view of retail media (or in-store DOOH).

- 23 per cent said the ads made them think about brands or products they wouldn’t have considered.

- 50 per cent of consumers felt DOOH improved their shopping experience and found the ads appealing—highlighting the importance of

FEATURE // BRAND PROFILE high-quality, eye-catching creative.

- Storefront Ads are the strongest drivers of purchase with 58% of viewers buying an advertised product.

“Vistar is the world leader when it comes to providing solutions for digital out-of-home,” said Cheyney. “We power a vast majority of all digital screens across the globe, roughly 1.2 million screens, with a variety of products.”

These solutions range from ad servers and player software to programmatic offerings like mediation layers, SSPs, and a buying platform (DSP) for digital out-of-home media.

When it comes to retail media adoption, Cheyney said most retailers are already engaged to some degree. “I’d say the majority of retailers are doing something as it relates to retail media at this point. It’s pretty unusual to find a retailer who’s not participating in any way,” he said.

However, there’s a clear split between online and in-store strategies.

“In Canada, there’s more of a ‘dipping your toe in the water.’ More is happening on the digital side of retail media than the in-store side right now,” said Cheyney. “That said, a lot of retailers are starting to play around and take steps to integrate the in-store piece into the rest of their retail media business.”

Retailers are realizing that while digital ads have limits, their brick-and-mortar spaces offer untapped potential.

“You can only add so many ads on your website before it starts to become a bad customer experience,” Cheyney explained. “So they’re looking for new, high-quality ad inventory that brand suppliers are going to be interested in that doesn’t negatively impact the customer experience, but instead helps people along their shopper journey.”

Cheyney said the push toward in-store retail media is both “an offensive and a defensive move.”

From an offensive perspective, he said grocers are competing for limited supplier trade dollars.

“Let’s say you’re Loblaw. Your suppliers are also being sold at Sobeys, at Metro, at Save-On-Foods. They’re looking where to invest trade dollars,” he said. “If a brand has a certain amount of trade dollars allocated, they’re probably going to shift a little bit more from competitive sets into somebody who makes this inventory available first.”

On the defensive side, inaction could cost retailers valuable media dollars. “If your competitors are starting to run pilots for their in-store, and you don’t do something, you’re at risk of losing out not only on trade dollars but also media dollars that are coming from the agencies,” he said.

So where does Canada stand compared to other global markets?

“In comparison to the U.S. and the U.K., Canada is behind, both on the digital and the in-store side,” said Cheyney. “Even retailers in Germany, France, and other European markets are ahead, though they’re catching up at a faster pace.”

He noted that U.S. retailers like Walmart have had retail media programs for over two decades, while Canadian companies such as Loblaw only began to seriously scale their efforts in the past few years. But that’s changing fast.

“Canada was late to the game, but it’s catching up quickly,” Cheyney said.

One area still lagging is data and identity. “Being able to track people from a targeting and measurement perspective is not at the same level as other global markets,” he said. “But that’s also catching up rapidly.”

Cheyney believes Canada’s in-store retail media segment is poised for rapid growth. “The in-store

component is also closing the gap and will likely catch up very quickly within the next 12 to 18 months,” he said, adding that Canada will likely follow the U.S. path in combining digital with instore strategies.

Retailers here, he added, have a valuable opportunity to avoid some of the missteps seen in more mature markets.

“One thing I’ll say, and this is where Canadian retailers can really benefit, is by learning from mistakes made in other markets, especially the U.S.,” said Cheyney. “When people go too fast without thinking about their objectives and strategies, they often make decisions they later regret.”

He described common pitfalls, including assuming screen installations lead directly to proportional revenue. “They’ve said, ‘Oh, if we have two screens, we’ll make X amount. So, four screens means double, and eight means quadruple.’ But that’s not how it works.”

“Adding more screens doesn’t change the number of people walking into your store,” he added. “And making the decision to plaster your store with screens just creates a bad customer experience.”

Cheyney said Vistar encourages a more thoughtful, measured approach.

“We advise retailers all over the world to be very intentional with what they’re doing.”

The good news? Canadian retailers seem to be doing just that.

“What I’ve found is that Canadian retailers are already thinking that way. They don’t need coaching to start thinking strategically, they already are,” he said. “They’re watching the pitfalls others have encountered and saying, ‘Let’s start with a firmly entrenched strategy and be intentional with everything we do.’

How Canadian shoppers are reshaping the future of retail

Exploring the new reality of shopping everywhere at once. // By Craig Patterson

As one BigCommerce white paper playfully put it: “Blame it on Google”. Search engines, mobile devices, and digital culture didn’t just change shopping, they rewired it. Today, the act of buying can start on Instagram, jump to a store app, pivot to an in-person visit, and end with curbside pickup.

This interconnection is what industry experts call omnichannel retailing. Unlike multichannel approaches where platforms are siloed, omnichannel integrates them, allowing frictionless traversing between digital and physical worlds.

And the numbers back up the shift. According to Firework’s 2024 omnichannel report, 80 percent of consumers use multiple channels to complete a purchase, while omnichannel shoppers spend 30 percent more than single-channel shoppers. Deloitte has called this convergence the new “loyalty engine” of retail, being a system where flexibility equals brand stickiness.

Why BOPIS Became Retail’s MVP

Buy Online, Pick Up In-Store, better known as BOPIS, has become the emblem of this new era.

Once a nice-to-have, it is now a cornerstone.

A MyTotalRetail analysis shows that 87 percent of Canadian retailers now offer BOPIS. That figure is projected to grow 16.8 percent annually, outpacing overall e-commerce growth. Deloitte’s own consumer survey notes that half of shoppers not only use BOPIS but often add unplanned instore items at pickup.

It’s no wonder retailers love it. “BOPIS provides retailers with several advantages. It increases foot traffic to physical stores, which can lead to additional impulse purchases when customers come to collect their orders,” noted Dennis Moon, COO of delivery platform Roadie.

But Moon also acknowledged the tension: staffing, storage, and “the speed of preparing orders for in-store pickup” remain challenges that retailers are scrambling to optimize.

The Consumer Expectation Gap

The pandemic accelerated digital adoption, but shoppers didn’t abandon stores. Instead, they began demanding both. Deloitte found that while 62 percent of customers start their shopping journey online, many still want to finish it instore.

Yet execution lags. A Firework survey revealed that while 90 percent of consumers want seamless interactions across all channels, only 29 percent of businesses deliver on that expectation. And the stakes are high. Omnichannel customers have a 30 percent higher lifetime value, and businesses that master the model retain 89 percent of their customers versus just 33 percent for those that don’t.

Retailers who fail to connect the dots risk losing ground. As one Deloitte report put it, “Retailers that lag in omnichannel capabilities risk customer attrition, even if their single-channel experience is strong”.

Technology as the Great Connector

Technology is what makes omnichannel possible. According to BigCommerce, it takes significant investment in customer relationship management systems, unified inventory, and digital infrastructure to stitch together the shopper journey.

Emerging tools are raising the bar further. Virtual try-ons powered by augmented reality, voice-enabled commerce through Alexa or Google Assistant, and real-time inventory management are becoming mainstream. Retailers like Warby Parker, which blends online try-ons with physical showrooms, exemplify the new hybrid model.

Data, too, is key. Deloitte emphasizes that retailers who use customer data platforms to unify online and offline interactions gain the insights necessary for personalization, which 71 percent of consumers now expect as standard.

Emerging tools are raising the bar further. Virtual tryons powered by augmented reality, voice-enabled commerce through Alexa or Google Assistant, and realtime inventory management are becoming mainstream.

Same-Day Delivery: Friend or Foe?

As much as BOPIS has surged, it isn’t the only player. Same-day delivery has emerged as both competitor and complement.

Moon explained that same-day delivery “eliminates the need to travel to a store” and alleviates space and staffing constraints. For customers short on time, that convenience is unbeatable.

The reality, experts say, is that it’s not an either-or scenario. Successful retailers will “likely need to offer a mix of fulfillment options to meet diverse customer needs and preferences”.

The Canadian Angle

While much of the data comes from U.S. markets, the Canadian retail landscape mirrors these shifts. Deloitte Canada notes that domestic consumers increasingly expect inventory visibility across digital and physical channels, real-time order status, and personalized promotions . For Canadian retailers, the competitive edge may

lie in bridging regional geography with global best practices. Curbside pickup proved critical in markets like Toronto and Vancouver during the pandemic, and retailers from Hudson’s Bay (RIP) to Walmart to Canadian Tire continue to refine hybrid fulfillment models.

Looking Ahead: Where Omnichannel Retailing Goes Next

What’s clear is that omnichannel retailing is no longer a strategy reserved for luxury or tech-forward brands. It is the baseline.

As Firework’s report concluded bluntly: “The data is clear: omnichannel strategies are no longer optional — they are essential for success in 2024 and beyond”.

Retailers that align tech investment, staff training, and customer experience design will capture the loyalty dividend. Those who don’t risk being left behind in a marketplace where consumers expect to shop on their terms, in their channel of choice, without compromise.

“More than half of shoppers still make the final purchase in-store, even after digital browsing.”

>>> According to PwC research, more than half of consumers make their purchase in-store, with 40% using online marketplaces as their preferred purchase method.

Photo courtesy of TheDigitalArtist