The Future of Shopping: Personalization Tech for the Self-Focused Shopper

Retailers are racing to replicate the hyper-curated experiences of e-commerce in their physical stores, leveraging advanced technology and the willingness of modern consumers to share their personal data. The goal? To make every shopping experience feel uniquely tailored, ensuring that customers feel seen, valued, and catered to.

This shift reflects the growing demand for personalized shopping, driven by consumers who increasingly expect retailers to know their preferences. According to Kelly Pedersen, retail lead at PwC, stores are adopting innovative tools like body scanners, in-store apps, and AI-powered systems to customize everything from drive-thru menus to in-store promotions.

“The possibilities are endless,” Pedersen said. “They could have things waiting for you in the changing room. They could send you personalized offers to your phone.”

Consumers’ Comfort with Sharing Data

Personalization has evolved into a retail buzzword, fueled by cultural shifts and technological advancements. Surveys show that over 90% of consumers are now comfortable sharing personal information to enhance their shopping experience, a dramatic rise from the 60% reported just a few years ago. Younger generations, particularly Gen Z, are leading the charge.

Rachel Hardy, Pinterest’s director of consumer product marketing, emphasized that this generation has grown up with smartphones and expects a curated experience. “They’re really into curation; they’re really into themselves,” she said, highlighting Gen Z’s comfort with data-driven customization.

AI at the Forefront

Artificial intelligence is the backbone of this transformation. Retailers are deploying AI tools to personalize marketing messages, refine product recommendations, and optimize promotions. At a recent retail convention, companies showcased technologies that collect body measurements, curate drive-thru menus based on demographics, and tailor supermarket discounts to what shoppers place in their carts.

One example is the iBody scanner, which uses precise body measurements to inform product design and fit recommendations. Other tools promise to turn drive-thru visits into customized experiences by dynamically adjusting menus based on customer data.

The technology doesn’t stop at enhancing customer convenience. Retailers are increasingly prioritizing AI in their mergers and acquisitions. Pedersen explained, “Companies are asking, ‘How do I acquire technology firms to accelerate these innovations?’”

Challenges and Opportunities

While the potential is immense, integrating these systems into retail requires careful consideration of privacy and security. The reliance on data-tracking raises concerns about how retailers use consumer information and how transparent they are with their methods.

Nevertheless, the appetite for personalization appears to outweigh these concerns for most shoppers, particularly younger ones who view data sharing as an integral part of the modern shopping experience. For retailers, this marks a major opportunity to strengthen customer loyalty and deliver more value through tailored offerings.

The future of shopping is undeniably personal, shaped by consumers who demand more relevant, curated experiences and retailers willing to invest in the technology to deliver them. With AI leading the charge, the line between online convenience and in-store engagement is blurring, creating a new era of self-focused, tech-enabled retail.

Acknowledgments

Inspired by Sarina Trangle’s article entitled “The Future of Shopping Is Tech for Shoppers Who Are ‘Really Into Themselves’” published on 17 January 2025 in Investopedia. Accessed 19 January 2025.