Retailers are turning to AI and GenAI to grease shopping friction 

Retailers across the globe—and especially in APAC—are ramping up investments in GenAI, automation and digital tools to reimagine the shopping experience amid evolving consumer expectations and mounting operational pressures. 

From hyperpersonalised promotions to real-time inventory management and theft prevention, technology is increasingly seen as the solution to both customer satisfaction and bottom-line protection.

FairPrice Group’s Store of Tomorrow outlines smart retail

Singapore’s FairPrice Group (FPG) is among the pioneers leading this transformation. At the NRF 2025: Retail’s Big Show Asia Pacific (NRF 2025 APAC), FPG unveiled its Store of Tomorrow (SOT) programme—a sweeping initiative designed to bring GenAI, biometric payments, computer vision, and smart automation into both brick-and-mortar and digital retail spaces.

The SOT programme’s implementation will debut in Q3 2025 at its Punggol Digital District FairPrice Finest outlet in Singapore. Highlights include:

• AI-powered smart carts: Offering real-time product suggestions and in-store navigation.
• Vision AI: Monitoring shelf stock, queues and safety issues through CCTV analytics.
• Grocer genie: A smart, AI-enabled portal that manages store operations and frontline tasks.
• Biometric checkout: Allowing customers to pay with a palm scan linked to their FPG app.
• Digital price tags: A sustainable alternative that enables rapid price updates and fewer manual tasks.

FPG plans to trial more than 20 new digital solutions annually over the next three years, focusing on stretching customer dollars through hyperpersonalised promotions and enhancing operational agility.

“Through our Store of Tomorrow programme, we want to re-imagine how innovation and technologies like GenAI and data analytics can make things easier on the wallet and experience for both physical and digital retail formats,” said Vipul Chawla, Group CEO of FairPrice Group.

The bigger picture: Retailers are feeling the pressure

New data from Zebra Technologies’ 17th Annual Global Shopper Study reveals that retailers everywhere, especially in APAC, are struggling with staff shortages, theft, customer dissatisfaction, and rising operational costs. Technology is increasingly seen as the lifeline.

Some key takeaways:

• Retail crime and shrinkage are top concerns: 80 per cent of APAC retailers are under pressure to reduce loss. AI-based prescriptive analytics, computer vision, and RFID are emerging as the tools of choice.
• Shoppers are frustrated: 78 per cent globally (and 79 per cent in APAC) are annoyed by locked-up merchandise and say they often can’t find store associates when they need help.
• Staff are stretched thin: Over 80 per cent of retail associates globally say it’s hard to get support when needed. Most believe mobile tools would significantly improve their ability to serve customers.
• Technology as a solution: 75 per cent of retailers (79 per cent in APAC) plan to increase tech investments in 2025. GenAI is seen as especially impactful for inventory management, demand forecasting, and operational efficiency.

“Retailers in Singapore and across the region are redefining the shopping experience to meet the demands of today’s consumers,” said Christanto Suryadarma, sales vice president for Southeast Asia, South Korea and Channel APJeC, Zebra Technologies. 

Essentially, investments in mobile and intelligent technology are crucial for building the modern store experience and staying competitive.

Reducing friction is an imperative

Together, the stories from FPG and Zebra paint a cohesive picture: retailers are no longer just adopting technology—they’re integrating it into the fabric of their operations to stay relevant.

Whether it’s biometric checkout, AI-generated promotions, real-time shelf monitoring, or empowering frontline staff with smart task management apps, the retail landscape is undergoing a deep digital reinvention. Retailers that succeed in this next phase will be those that deploy technology not just for efficiency, but to create intuitive, responsive and meaningful customer experiences.

In a world where consumer patience is thin, staff are stretched, and margins are tighter than ever, the message is clear: Unifying technology systems and deploying AI isn’t a luxury in retail—it’s the new baseline.