by Mark Thomson, Retail Strategy Director EMEA, Zebra Technologies
For years, the narrative has been clear: e-commerce holds all the cards on data and personalisation, while brick-and-mortar retail struggles to keep up. But a quiet revolution is happening in the grocery aisle. Physical stores are being transformed into intelligent, highly personalised environments, and retailers who harness this change are creating a powerful new playbook for growth. Data from Zebra’s Global Shopper Study supports this shift.
- A full 43% of retail decision-makers now rank in-store digital ads and retail media networks as the top drivers of in-store profitability.
- Looking ahead, the trend is set to accelerate, with 83% of retail decision-makers rating this technology as extremely or very important over the next five years.
- And 54% plan to implement it within that same period. The traditional store is becoming a high-margin digital media channel.
The High Street’s Data Dilemma
Consider the challenges facing a typical high-end supermarket chain. One such retailer, known for its premium delicacies, meats, wines, cheeses, seafood and focus on the customer experience across its 40 outlets, found itself at a crossroads.
Its ability to generate revenue from in-store advertising was limited, meaning significant financial opportunities were being left on the table. Traditional promotions were failing to influence purchasing decisions in a measurable way, and operational hurdles, from checkout queues to persistent labour shortages, were actively costing sales through customer frustration and abandoned shopping trolleys.
This scenario is a familiar one for many retailers. The physical store, rich with shopper activity, has historically been a data blind spot. The challenge was clear: how to bridge the digital-physical divide to elevate the shopper journey, ease operational burdens, and unlock the immense, untapped value of in-store customer behaviour.
Real-Life Example: Aisles with Intelligence
The breakthrough came from an alliance between a cutting-edge AI technology developer specialising in personalised media and a global leader in enterprise mobile computing. By integrating an intelligent personalisation platform directly onto personal shopper devices and enterprise tablets used in the store, the retailer discovered the master key to a new level of customer engagement and operational efficiency.
This solution empowers the store in real time. As shoppers navigate the aisles using the provided devices, the AI platform analyses their behaviour and preferences. It then delivers personalised recommendations, targeted promotions, and relevant content directly to the screen in their hand.
These robust devices, built to withstand the rigours of a high-traffic retail environment, become a new, intelligently automated digital advertising surface. This allows brands to reach highly specific in-store audiences with unprecedented precision right at the point of decision, transforming the physical act of shopping into a dynamic, data-rich, and individualised experience. Customers, inventory and the retail frontline are more connected than ever.
The Outcomes: Turning Footfall into Fortune
The impact of this approach yielded significant, measurable improvements.
- For a test group at the supermarket chain, the AI-driven recommendations delivered in real time led to an uplift in the average basket size of nearly 5% compared to the previous year.
- Furthermore, the automated checkout options available on the devices helped alleviate the pressure caused by labour shortages, contributing to a higher revenue per square foot.
- Perhaps most tellingly, the adoption rate among active shoppers soared to 70%, signaling a clear consumer appetite for a smoother, more tailored shopping journey.
This was a value-added experience that strengthened customer loyalty. As the retailer’s chief technology officer explained, “By leveraging robust hardware and cutting-edge AI solutions, we have transformed our in-store marketing, driving significant growth and enhancing the shopper experience.”
From Point of Sale to Point of Influence
Beyond immediate sales lifts, this technology opens the door to one of the most exciting new frontiers in retail: high-margin media income. The first-party data captured through the devices – what customers look at, what they put in their basket, and which offers they respond to is immensely valuable.
It allows the retailer to build a sophisticated retail media network within its own four walls. And according to Zebra’s Global Shopper Study, consumers agree with 73% saying they are likely to use retail media networks, and 72% want to see more personalised promotional ads when shopping in-store.
Brands can now move beyond blunt, store-wide promotions and target the right customer at the optimal moment, amplifying the value of their marketing spend. For retailers, this represents a pivotal shift, creating a new and lucrative revenue stream that leverages their most valuable asset: their customer relationships. The strategic imperative is clear.
This technological turning point has sparked a wave of fresh, innovative projects for the retailer, paving the way for continued growth. It proves that by intelligently integrating AI and durable hardware, brick-and-mortar stores can solve long-standing operational challenges and also create a deeply engaging, personalised, and far more profitable future. The retail store is a point of sale experience and an increasingly powerful point of influence.
