WORLDEF ISTANBUL 2026 - Upcoming Event

Register Now

Retail Sees Powerful 5-Point Shift as E-Shopping Moves to TikTok and AI

Retail Sees Powerful 5-Point Shift as E-Shopping Moves to TikTok and AI

At the World Retail Congress 2026 in Berlin, one message stood out above all: e-shopping is no longer driven by intent, it is driven by influence. The industry is shifting away from search-led transactions toward a model built on content, creators, and continuous discovery.

For decades, e-commerce was defined by a simple journey, consumers searched for a product, compared options, and completed a purchase. That model is now being rapidly replaced. Platforms such as TikTok are reshaping the path to purchase, turning passive scrolling into active buying, and transforming entertainment into commerce.

From Search to Discovery

The rise of TikTok Shop signals a structural change in how products are found and sold. Consumers are no longer entering platforms with a fixed intention to buy; instead, they are discovering products through content, often without prior demand. In this environment, creators function as storefronts, and algorithms act as the new shop windows.

Traditional players are already feeling the impact. Companies like QVC, once synonymous with television retail, are now finding new audiences through TikTok, reporting significant customer acquisition driven by short-form video and live commerce formats. The shift is not incremental, it is foundational.

E-Shopping Becomes Content-Led Commerce

What is emerging is a new form of e-shopping where content is not a layer on top of commerce, it is the core of it. The entire funnel, from awareness to conversion, is collapsing into a single experience.

Consumers watch, engage, and purchase within the same interface. The boundaries between media, marketing, and retail are dissolving, creating a unified environment where inspiration directly leads to transaction. In this model, the speed of decision-making increases, and the role of brand storytelling becomes more critical than ever.

AI Enables Scale, But Not Differentiation

Artificial intelligence is accelerating this transition, particularly in areas such as content generation, personalization, and inventory optimization. Retailers are increasingly able to produce visuals, tailor recommendations, and respond to demand in real time.

Yet, the tone in Berlin was measured. AI may enhance efficiency, but it does not replace creativity or human connection. The brands that stand out will not be those that automate the most, but those that combine technology with compelling narratives.

Retail Repositions Around Experience

While e-shopping evolves, physical retail is undergoing its own transformation. Stores are no longer expected to compete with digital channels on convenience or price. Instead, they are being repositioned as spaces for experience, community, and brand immersion.

Retailers are investing in environments that encourage interaction, spaces where consumers can spend time, connect with others, and engage with products beyond the transactional moment. The store, in this context, becomes a complement to digital discovery rather than a competitor.

A New Retail Equation

The discussions in Berlin point to a broader redefinition of the industry. Retail is no longer a channel-based system divided between online and offline. It is becoming an integrated ecosystem shaped by content, technology, and human engagement.

The future of e-shopping will not be won through logistics alone, nor through platforms alone. It will belong to those who understand how to capture attention, build relevance, and convert inspiration into action, often within seconds.

In that sense, the evolution of retail is not just about where consumers shop, but how and why they decide to buy at all.

Source

Retail Transformation Shows Philadelphia Malls’ Resilient Shift in the E-Commerce Era

Retail Transformation Shows Philadelphia Malls’ Resilient Shift in the E-Commerce Era

Philadelphia’s shopping malls are no longer operating as they did decades ago, but their role in the retail ecosystem is far from over. As e-commerce continues to reshape consumer behavior, malls across the Philadelphia region are adapting to a new era of shopping, entertainment and community engagement.

The region is home to more than a dozen indoor malls, many of which once served as major social and commercial hubs. Philadelphia’s first mall, The Gallery, opened in Center City in 1977, followed by Franklin Mills in Northeast Philadelphia in 1989 and The Shops at Liberty Place shortly after. These destinations attracted strong foot traffic and sales during their early years.

From Retail Hubs to Experience-Driven Destinations

However, the rise of online shopping, changing consumer expectations and pressure on traditional retail brands have transformed the mall model. The 2008 recession and the pandemic further accelerated this shift, leaving many malls with lower foot traffic and new financial challenges.

Instead of disappearing, malls are being reimagined. Retail experts say their future will depend on experiences that cannot be fully replicated online, including dining, entertainment, services, mixed-use spaces and community-focused concepts. E-commerce has not eliminated malls; it has pushed them to become more flexible and experience-driven.

The transformation of The Gallery into Fashion District Philadelphia in 2019 reflects this broader trend. Across the region, malls are increasingly moving beyond traditional shopping and positioning themselves as lifestyle destinations.

As retail continues to blend physical and digital channels, Philadelphia’s malls show how brick-and-mortar spaces can evolve rather than vanish.

Source

Amazon Reports Strong Q1 2026 Growth as AI and Cloud Drive Positive Momentum

Amazon Q1 2026 Results Highlight Strong AWS Momentum and AI-Led Transformation

Amazon delivered a strong start to 2026, reporting solid growth across its core segments, driven by continued momentum in cloud computing, advertising, and AI-led investments.

Revenue Growth Reflects Global Demand Strength

Amazon recorded net sales of $181.5 billion in Q1 2026, representing a 17% increase compared to $155.7 billion in the same period last year. Excluding a $2.9 billion favorable impact from foreign exchange, net sales grew 15% year-over-year, indicating consistent underlying demand across markets.

Regionally, North America generated $104.1 billion in revenue, up 12%, while international sales reached $39.8 billion, growing 19% year-over-year, or 11% on a currency-adjusted basis. The performance highlights Amazon’s continued strength in global e-commerce and cross-border operations.

Operating Income Expansion Driven by AWS

Operating income rose to $23.9 billion, up from $18.4 billion in Q1 2025, reflecting improved efficiency and higher-margin contributions.

Segment performance showed:

  • North America operating income: $8.3 billion (up from $5.8 billion)
  • International operating income: $1.4 billion (up from $1.0 billion)
  • AWS operating income: $14.2 billion (up from $11.5 billion)

AWS remained the primary profit driver, accounting for a significant share of total operating income, supported by sustained enterprise demand and AI-related workloads.

Net Income Accelerates with Investment Gains

Amazon reported net income of $30.3 billion, compared to $17.1 billion in Q1 2025. Earnings per share increased to $2.78, up from $1.59.

The quarter included a $16.8 billion pre-tax valuation gain related to Amazon’s investment in Anthropic, reflecting the growing strategic importance of AI partnerships. Excluding this impact, profitability still showed meaningful year-over-year improvement, driven by operational performance.

AWS Continues to Scale at High Margins

Amazon Web Services generated $37.6 billion in revenue, marking a 28% year-over-year increase and its fastest growth rate in over a year.

AWS delivered $14.2 billion in operating income, with an operating margin of approximately 37.7%, reinforcing its role as Amazon’s most profitable business segment. The division continues to benefit from rising enterprise adoption of cloud infrastructure and generative AI capabilities.

Cash Flow Impacted by Elevated Capital Expenditure

Amazon’s operating cash flow over the trailing twelve months reached $148.5 billion, up from $113.9 billion in the prior year period, representing a 30% increase.

However, free cash flow declined to $1.2 billion, compared to $25.9 billion a year earlier. This decrease reflects a sharp rise in capital expenditures, which increased by $59.3 billion, as Amazon accelerates investments in AI infrastructure, data centers, and logistics capabilities.

Advertising and AI Investments Gain Momentum

Amazon’s advertising revenue reached $17.2 billion, growing 24% year-over-year, as brands continue to shift budgets toward performance-driven digital channels.

The company also highlighted rapid progress in its AI ecosystem, including a custom chip business that has surpassed a $20 billion annualized run rate. Capital expenditures totaled $43.2 billion in Q1, with full-year investments expected to reach approximately $200 billion, underscoring the scale of Amazon’s long-term technology strategy.

Outlook Signals Continued Growth

For the second quarter of 2026, Amazon expects net sales between $194 billion and $199 billion, indicating sustained momentum across its core businesses.

While increased investment continues to weigh on free cash flow, the company’s strong operating performance, combined with accelerating demand for cloud and AI services, positions it for continued growth.

Key Takeaway

Amazon’s first-quarter results highlight a company balancing strong profitability with aggressive long-term investment.

With $181.5 billion in revenue, $30.3 billion in net income, and AWS growing 28%, Amazon continues to strengthen its position at the intersection of e-commerce, cloud computing, and artificial intelligence.

Source

Top 3 Nordic Retailers Lead Europe’s Cross-Border Seller Ranking

Top 3 Nordic Retailers Lead Europe’s Cross-Border Seller Ranking

Europe’s cross-border ecommerce market is being led by major Nordic multichannel retailers, with Ikea, Jysk and H&M ranking as the best-performing cross-border sellers in Europe. The ranking comes from the eighth edition of the TOP 500 B2C Cross-Border Retail Europe report by Cross-Border Commerce Europe.

The report evaluates companies based on several factors, including sales performance, SEO indicators, international market presence, cross-border visitors, brand authority and local customer options. Ikea kept its leading position, while Jysk moved up from fifth place to second. H&M remained in third place.

Retail Leaders Dominate Cross-Border Sellers in Europe

The top three companies all come from the Nordics and have strong physical retail backgrounds, showing that store-based brands continue to play a major role in online international commerce. Germany’s Zalando is the first pure online player on the list.

Cross-Border Commerce Europe estimates that cross-border ecommerce spending in Europe reached 108 billion euros in 2025, excluding travel. The TOP 500 companies generated 86 billion euros in cross-border online sales, marking 25 percent growth compared to the previous year.

Despite this growth, the market is entering a slower and more stable phase, shaped by macroeconomic pressure and a stronger focus on profitability and operational efficiency.

Source

Read more e-commerce news on WORLDEF.

Saudi Arabia’s 85% E-Payments Milestone Signals Positive Digital Payment Boom

Saudi Arabia’s 85% E-Payments Milestone Signals Positive Digital Payment Boom

Saudi Arabia is rapidly moving toward a cashless economy, with electronic payments now representing 85% of total retail transactions in 2025, marking a significant leap in the Kingdom’s digital transformation journey. This milestone highlights the accelerating adoption of fintech solutions and the success of long-term government strategies aimed at reducing cash dependency.

The growth builds on strong momentum from previous years. In 2024, electronic payments already accounted for 79% of retail transactions, up from 70% in 2023, reflecting a steady and consistent shift toward digital payment methods.

This rapid adoption is largely driven by Saudi Arabia’s Vision 2030 initiative, which prioritizes financial innovation and aims to create a fully digital economy. Government-backed programs, combined with the expansion of payment infrastructure, have made digital transactions more accessible and convenient for both consumers and businesses.

E-Payments Drive Saudi Arabia’s Digital Economy Transformation

A key factor behind this growth is the widespread use of mobile wallets, contactless payments, and real-time banking solutions. Platforms like mada, SADAD, and sarie have significantly improved transaction speed and reliability, encouraging consumers to move away from cash. At the same time, smartphone penetration and internet accessibility have enabled seamless adoption across urban and rural areas.

E-commerce growth has also played a major role. As online shopping continues to expand in the Kingdom, digital payment methods have become the default option for transactions. Retailers are increasingly integrating advanced payment technologies to meet consumer expectations for speed, security, and convenience.

In addition, the rise of fintech companies is intensifying competition and innovation within the sector. Saudi Arabia had over 200 licensed fintech firms by 2024, with ambitions to significantly increase this number in the coming years. This dynamic ecosystem is contributing to the development of new payment solutions, including buy-now-pay-later (BNPL), embedded finance, and cross-border payment systems.

Despite this strong progress, challenges remain. Cybersecurity concerns, regulatory complexities, and the need for continuous infrastructure upgrades require ongoing attention. However, collaboration between regulators, banks, and fintech players continues to strengthen the overall ecosystem.

Looking ahead, Saudi Arabia is well-positioned to become one of the leading digital payment markets globally. The shift toward cashless transactions is not just a technological change, it represents a broader transformation in consumer behavior and financial systems. As adoption continues to rise, digital payments are expected to play an even more central role in shaping the future of commerce in the region.

Source

AI and Smart Labels Are Transforming $200B Retail and E-Commerce in Latin America

AI and Smart Labels Are Transforming $200B Retail and E-Commerce in Latin America

Retail in Latin America is entering a new phase one defined not just by growth, but by intelligence.

Artificial intelligence and smart labeling technologies are reshaping how products are priced, tracked, and sold, turning traditional retail environments into real-time, data-driven ecosystems.

At the center of this transformation are smart labels digital price tags and connected systems that go far beyond static product information.

From Static Retail to Real-Time Commerce

Retail has traditionally operated on fixed pricing, manual updates, and delayed decision-making.

That model is now being replaced.

With AI-powered systems and electronic labels, retailers can update prices instantly, respond to demand fluctuations, and optimize promotions in real time. This shift enables what industry leaders describe as dynamic commerce a model where operations are continuously adjusted based on data.

The result is a more agile retail environment where pricing, inventory, and customer experience are no longer disconnected.

Smart Labels as a Strategic Tool

Smart labels often powered by technologies like RFID, NFC, or digital shelf displays are becoming a key interface between products and data.

They allow retailers to:

  • Automate price changes across thousands of SKUs
  • Improve inventory visibility and tracking
  • Enable real-time promotions and personalized offers
  • Reduce operational errors and manual workload

More importantly, these labels create a bridge between physical stores and digital commerce systems, aligning offline retail with e-commerce logic.

This convergence is critical in a region where omnichannel strategies are rapidly evolving.

AI Is Redefining Decision-Making

Artificial intelligence is not just supporting operations it is redefining them.

Retailers are increasingly using AI to analyze consumer behavior, predict demand, and automate decisions that were once handled manually. From pricing strategies to shelf optimization, AI enables a level of responsiveness that traditional systems cannot match.

In Latin America, adoption is accelerating as companies aim to keep pace with global innovation and rising consumer expectations.

Why Latin America Is a Key Growth Region

The region’s e-commerce market is projected to surpass $200 billion, making it one of the fastest-growing globally.

This growth creates the perfect environment for innovation.

However, challenges remain fragmented infrastructure, logistics complexity, and varying digital maturity. AI and smart technologies offer a way to overcome these limitations by improving efficiency and reducing operational friction.

The Bigger Shift: Retail Becomes a Data Platform

The real impact of AI and smart labels goes beyond efficiency.

Retail is evolving into a data platform, where every product, shelf, and transaction generates actionable insights. The store is no longer just a sales channel it becomes part of a connected, intelligent system.

In this model, success is not defined by scale alone, but by how effectively businesses can turn data into decisions.

Source

Retail CX Reality 63% of Leaders Struggle to Prove ROI on Digital Investments

Retail CX Reality 63% of Leaders Struggle to Prove ROI on Digital Investments

Retailers across Asia are facing a growing challenge: despite heavy investments in digital transformation and customer experience (CX), many are still struggling to deliver measurable business results.

While companies continue to pour resources into new platforms, AI tools, and omnichannel experiences, the expected return on investment remains unclear for a significant portion of the industry.

The Gap Between Investment and Impact

A large share of retail leaders report difficulty in demonstrating tangible returns from their digital initiatives. Investments in CX are often treated as innovation projects rather than core business drivers, making it harder to connect them directly to revenue growth or profitability.

This has created what experts describe as a “CX illusion” ,where brands appear digitally advanced on the surface, but fail to translate that into real customer value or financial performance.

Why Digital Investments Fall Short

One of the main issues is fragmentation. Many retailers operate across multiple platforms and channels, but lack integrated data systems. This disconnect makes it difficult to fully understand customer behavior and optimize the end-to-end experience.

At the same time, organizations often focus too heavily on technology rather than execution. According to industry insights, retail is now shifting away from “innovation hype” toward what actually works at scale consistent operations, efficiency, and measurable outcomes.

CX Is Still Treated as a Cost, Not a Strategy

Another critical challenge lies in internal perception. In many organizations, customer experience is still viewed as a design or marketing function instead of a business growth driver. This limits its ability to influence strategic decisions and long-term investment priorities.

As a result, CX initiatives often fail to deliver impact because they are not aligned with core business metrics such as revenue, retention, or operational efficiency.

The Shift Toward Measurable Value

Retailers are now being forced to rethink their approach. Instead of focusing on launching new digital features, the emphasis is shifting toward:

  • Data integration across channels
  • Personalisation based on real customer insights
  • Operational efficiency and cost control
  • Clear measurement of ROI

This shift reflects a broader industry trend where execution and performance matter more than innovation alone.

From Illusion to Execution

The next phase of retail transformation will not be defined by how much companies invest in technology, but by how effectively they use it. Businesses that can connect digital initiatives directly to measurable outcomes will gain a competitive advantage.

In a market where margins are under pressure and customer expectations continue to rise, the real challenge is no longer digital adoption but delivering real value from it.

Source: Retail Asia

Read more on WORLDEF

Dubai Opens E-Commerce Growth in 1 Key Policy Shift Without New Licences

Dubai Removes Barriers: Retailers and Restaurants Can Expand E-Commerce Without New Licences

A Major Boost for E-Commerce Growth in Dubai

Dubai has introduced a significant regulatory shift, allowing retailers, trading companies, and restaurants to expand into e-commerce without applying for additional licences.

Under the current framework, businesses can launch online stores, sell through digital marketplaces, and offer delivery services using their existing licences provided their activities remain within their approved scope.

This move is designed to simplify digital expansion and accelerate e-commerce adoption across the emirate.

Faster Digital Expansion for Businesses

The new approach removes one of the biggest barriers for businesses entering online commerce: licensing complexity.

Retailers can now quickly:

  • Launch their own e-commerce websites
  • Sell عبر marketplaces
  • Accept digital payments
  • Reach new customer segments

At the same time, restaurants and F&B brands can expand into delivery services through approved platforms, enabling them to grow beyond physical locations.

Officials emphasized that the initiative supports businesses of all sizes from startups and SMEs to multinational companies by making it easier to scale digitally.

Part of Dubai’s D33 Digital Economy Vision

The policy aligns with Dubai’s broader Economic Agenda D33, which aims to position the emirate as a global hub for digital commerce and innovation.

As part of this strategy, initiatives like the Dubai Traders programme are already helping businesses transition online through:

  • Reduced costs
  • Faster onboarding
  • Integration with major marketplaces

These efforts aim to strengthen Dubai’s e-commerce ecosystem while enabling companies to diversify revenue streams and increase resilience in a rapidly evolving digital economy.

Source: Arabian Business

AI and Omnichannel Transformation in Retail: A CIO Perspective from Grandiose

AI

Headquartered in the United Arab Emirates (UAE), Grandiose Supermarket offers an unforgettable multisensory experience within a unique grocery shopping environment. A premium-quality food and grocery retailer, Grandiose was founded in December 2016. Since then, it has redefined the supermarket experience in the UAE. Positioning itself as “the most loved neighborhood supermarket,” Grandiose continues to expand its reach through online ordering and exclusive promotions. We spoke with Grandiose Digital & Technology Director, Marcin Piekarczyk about the company’s mission and vision. Piekarczyk shared important insights on a wide range of topics, from artificial intelligence to omnichannel strategies.

A commercially minded omnichannel and marketing leader, Marcin Piekarczyk specializes in the development of retail, omnichannel, and e-commerce strategies for globally recognized brands, as well as executive management of retail brands and businesses. He has experience in digital transformation coaching aimed at transforming traditional retailers into fully hybrid business models. He is deeply passionate about customer experience. He has more than 16 years of proven experience working in dynamic environments and multinational cultures. He has experience managing omnichannel business models across eight different international markets.

How Does Technology Create Value?

Piekarczyk currently oversees digital and technology transformation across multiple food and retail brands with very different operational realities. When asked, “What are the core principles that guide your transformation strategy across such a complex ecosystem?”, Piekarczyk replied: “Rather than adopting technology for its own sake, we maintain a strong focus on outcomes and customer impact. Too often, organizations pursue the latest tools or platforms simply to appear technologically advanced, without clearly defining the problems they are trying to solve or fully understanding what customers, both internal and external, truly want and need.”

Stating that “For us, a successful transformation always starts with data and a deep understanding of the customer,” Piekarczyk continued: “Before introducing any new technology, we invest time in mapping customer journeys, identifying pain points, and understanding where friction exists across operations and experiences. Only once this foundation is clear do we evaluate technologies and select digital transformation initiatives that are purpose-built to address real needs.

Equally important is ensuring that the organization itself is ready for transformation. This begins with people and culture. In many cases, our role as a technology function goes beyond delivery; we also act as advisors and advocates for change, helping business units build a culture that embraces transformation. Technology only creates value when it is adopted, trusted, and effectively used by people across the organization.”

“We Are in the Early Stages of AI Applications”

Regarding the areas in which artificial intelligence delivers the fastest and most measurable value, Marcin Piekarczyk stated: “We are in the early stages of applying artificial intelligence across logistics and the supply chain. We are taking a selective and pragmatic approach. Today, we are testing specific use cases such as replenishment, assortment optimization, and demand forecasting. At this stage, it would be premature to overstate short-term impact or claim transformational results.

Our strategic priority is not rapid deployment, but building the foundations that will allow artificial intelligence to become a true competitive advantage over time. This includes significant investment in high-quality, well-governed data across products, vendors, and sales. Reliable and scalable data is a prerequisite for AI-driven decision-making at enterprise scale.”

He also added: “By focusing on data quality and governance today, we are enabling the business to move quickly and confidently as AI use cases mature. This approach ensures that future AI investments translate into sustainable performance improvements rather than isolated experiments with limited long-term value.”

“Data Is One of Our Highest Priorities”

Piekarczyk also responded to the question, “Many organizations struggle not with data availability but with data usability. How do you ensure that real-time data actually translates into better operational and commercial decisions?” as follows:

“Data is one of our highest priorities. Over the past few months, we have been intensely focused on data cleansing and establishing strong data governance practices across the organization. We have onboarded a dedicated data team, launched multiple data quality initiatives, and successfully implemented a Customer Data Platform for Grandiose. I consistently emphasize that data is the single most critical enabler of any digital transformation or artificial intelligence initiative.

Without trusted, well-governed, and accessible data, even the most advanced technologies cannot deliver meaningful or sustainable value. Our focus is not just on collecting data, but on ensuring that data is usable, reliable, and embedded into day-to-day decision-making across the business.”

“The Biggest Omnichannel Challenge Is Inventory Management”

From a CIO’s perspective, Piekarczyk also explained the most challenging back-end issues in making omnichannel truly work, particularly in high-frequency food and retail environments: “We operate in an extremely fast-paced and high-volume environment. We process thousands of orders every day across multiple touchpoints, including our app, website, aggregators, and more than 45 physical stores. In grocery retail, this complexity is further amplified by the wide range of vendors we work with, varying commercial terms, and the diversity of product categories, from fresh and ultra-fresh to prepared foods.

From both a back-end and customer-facing perspective, the single biggest omnichannel challenge is inventory management. Ensuring accurate and real-time inventory visibility across all sales channels is critical. Customers expect consistency; if a product is visible online, it must be available. Preventing customers from encountering out-of-stock items on digital platforms is essential to delivering a reliable omnichannel experience and maintaining long-term customer trust.”

“We Apply Artificial Intelligence Only When It Makes Sense”

Marcin Piekarczyk answered the question, “How do you balance process maturity with AI-driven automation to avoid increasing digital complexity rather than reducing it?” as follows: “The answer to this question is quite simple: we apply artificial intelligence only when it makes sense. There is a growing tendency in the market to introduce artificial intelligence for the sake of artificial intelligence, rather than to solve real problems.

At Ghassan Aboud Holding and Grandiose, we always start by clearly defining the problem, then building a business case. Only after that do we decide whether artificial intelligence, or any other technology, is the right solution. I call this approach ‘AI with purpose.’ Strong process discipline must always come first; otherwise, technology increases complexity instead of reducing it.”

“Our Focus Is on Targeted Experiments in Areas Such as Demand Forecasting and Replenishment”

In response to a question about the role of technology and artificial intelligence in building resilience, risk anticipation, and continuity across logistics and inventory networks, given the vulnerabilities in global supply chains, Piekarczyk stated that technology and artificial intelligence play an important role in reducing risk across supply chains and said:

“They enable better anticipation of demand volatility and potential supply shortfalls, help identify risks earlier, and support the evaluation of alternative scenarios and workarounds before disruptions impact operations or customers. That said, we are still in the early stages of adopting advanced artificial intelligence capabilities in supply chain management. Today, our focus is on targeted experimentation in areas such as demand forecasting and replenishment, where value can be tested and measured pragmatically. More advanced applications, such as predictive risk modeling and dynamic network optimization, remain firmly on our radar as future opportunities, to be pursued as our data maturity and operational readiness continue to evolve.”

“Without In-House Technical Expertise, Even the Most Sophisticated External Resources Cannot Deliver Meaningful Value”

Piekarczyk also answered the question, “When implementing artificial intelligence and digital solutions, how do you decide between in-house development, third-party platforms, or strategic partnerships?” as follows: “There is no single right or wrong approach; it largely depends on overall strategy and how you manage your profit and loss structure. Regardless of the model, it is critical to have in-house technical expertise capable of understanding business requirements, defining needs, and evaluating architecture. Without this capability, even the most sophisticated external resources cannot deliver meaningful value.”

He continued: “In practice, we often adopt a hybrid model. Certain strategic artificial intelligence initiatives, such as the GrandChef project with Microsoft, are managed through close partnerships. At the same time, other operational and development work is handled in-house or outsourced depending on complexity and scale. This hybrid approach allows us to balance control, cost, speed, and innovation, while ensuring that core knowledge remains within the organization.”

  • Beyond cost savings, which KPIs or metrics best indicate that a digital or artificial intelligence initiative in logistics or operations is truly successful?

Marcin Piekarczyk: I typically focus on two key metrics. The first measures overall business impact, such as incremental revenue generation or cost savings achieved. The second evaluates the success of the initiative within the broader context of digital transformation, specifically adoption and usage. If a solution is not actively embraced and used by business units and stakeholders, then it has not truly succeeded, regardless of how advanced the technology may be.

  • Digital transformation ultimately depends on people. What skills and leadership capabilities do you believe are most critical for CIOs and technology leaders operating in logistics-heavy retail environments?

Marcin Piekarczyk: I would describe it as a combination of technical expertise and business acumen. A successful leader must understand the technical aspects of digital initiatives while also appreciating their impact on the business, the profit and loss structure, and overall profitability. Technical knowledge alone is not sufficient. In addition, strong influencing and change management skills are essential. Innovation is inherently about change, and people naturally resist change. Being able to guide, inspire, and align teams through transformation is just as important as delivering the technology itself.

  • Looking toward the next 3–5 years, which technological or artificial intelligence–driven shifts do you believe will have the greatest impact on logistics and supply chains in the Middle East?

Marcin Piekarczyk: We will see further automation across logistics and supply chains, starting with predictive demand planning and extending to increased automation in fulfillment centers. Companies that successfully combine artificial intelligence, real-time visibility, and advanced analytics with strong data foundations and operational discipline will gain a decisive advantage in efficiency, resilience, and customer experience.

Global Retail Faces Harsh AI Reality as Only 5% See Real Returns Despite 95% Adoption

Global Retail Faces Harsh AI Reality as Only 5% See Real Returns Despite 95% Adoption

The global retail sector is entering a more pragmatic phase of AI adoption, as new research reveals a significant gap between experimentation and real business impact. A joint report by Voyado and Retail Economics shows that while 95% of companies have already tested AI in marketing or e-commerce, only 5% report clear and scalable returns.

The findings highlight a critical shift in the AI narrative-from rapid adoption to measurable performance-raising new questions about how retail businesses can turn AI investments into tangible results.

Data and Organizational Gaps Hold Back AI Performance

According to the report, the challenge is not access to AI tools, but the lack of strong data foundations and organizational readiness. Retail companies that achieve meaningful results typically rely on significantly more data sources and have more mature internal systems.

A major barrier remains internal capability. Around 58% of respondents identified skills shortages as the primary obstacle, while most of the top challenges were linked to organizational structure rather than technology itself.

This suggests that many retailers are still operating AI in isolated pilots rather than embedding it into core workflows.

AI Investment Set to Reshape the Retail Sector by 2030

Despite current limitations, the long-term impact of AI across the retail industry remains substantial. The report estimates that 39% of marketing and e-commerce budgets will be exposed to AI by 2030, representing approximately €14.9 billion annually.

Businesses are increasingly expecting AI to become a standard part of operations. Around 71% believe AI will be fully integrated into marketing workflows within two years, while 45% expect it to deliver measurable returns within the same timeframe.

The shift indicates that while adoption is already widespread, the next phase will be defined by execution-where only companies with strong data infrastructure and operational alignment are likely to capture real value.

Source: My Newsdesk