Industry Insight

The retail industry is undergoing a significant transformation, driven by technology and evolving consumer demands. This new era, dubbed‘ Shopping 2.0,’ sees retailers leveraging advanced technologies like Artificial Intelligence( AI) to create smarter, more personalised experiences. As Richard Evans, UK & I Country Manager for WSO2, explains, securing this agile infrastructure against escalating cyberthreats and navigating complex compliance regulations becomes paramount. This article explores how robust digital identity solutions are providing the essential foundation for retailers to thrive in this dynamic and competitive market.

Shopping 2.0: Smarter technology, sharper experiences

Since the start of 2025, the retail industry has been undergoing a seismic shift, driven by technology innovation, rapidly evolving consumer demands and a fiercely competitive market as retailers strive for a share of the consumer’ s wallet.

When we talk about technological innovation, retailers are rapidly adopting AI to deliver smarter, faster, more tailored and personalised experiences. AI can help retailers curate product recommendations, implement dynamic pricing and design loyalty rewards based on individual preferences. We are seeing the rise in virtual assistants and chatbots, which enhance customer service while reducing operational costs.

Retailers that use AI report up to 69 % revenue growth and 72 % cost reduction. Today, shopping is no longer merely a transactional experience; it’ s immersive, shareable, and community driven. Social platforms like TikTok, Instagram and X are now well-used shopping hubs. Live shopping events and influencerled campaigns drive impulse buys and brand engagement. In-store experiences, from pop-ups to themed cafés, are designed to engage customers. Likewise, smart inventory and supply chains are a prerequisite for this agile approach, with predictive analytics helping retailers manage stock, reduce waste and respond to demand spikes.

Identity is central to powering a secure, adaptive retail infrastructure

In this rapidly evolving environment, robust digital identity solutions are essential for retailers seeking to achieve their newfound goals, and www. intelligentretail. tech 35