That retail has experienced extreme disruption in recent years is beyond questioning. Even before Covid turned the world on its head, headlines about the so-called "retail apocalypse" were near-ubiquitous in the media. Since then, we've seen lockdowns, fluctuating openings and closings, some firms going out of business altogether, celebrations of essential retail workers and a surge in online shopping that brought record profits while yielding more ambiguous results for others. And now, with ongoing supply chain disruption, inflation and a tight labor market, it's clear that the retail sector still faces substantial challenges. But these challenges also represent opportunity, and harnessing the power of digital transformation will remain central to every business leader serious about thriving in the post-Covid world.

… of of Vijay Gullapalli, vice president, artificial intelligence/machine learning and data science, and Pete Ball, technology licensing leader.

National Retail Federation's annual Big Show and Expo in New York – have announced several retail technology deals, indicating that innovation is the key to improve customer experience. Total e-commerce revenue in 2020 will reach $3.52 trillion, an explosion that will force retailers to find faster and more convenient modes to reach the final mile and yard, according to tech market advisory firm, ABI Research. There is increasing convergence of online and in-store businesses, with brick and mortar positioned as hubs closer to the customer, as well as e-commerce sites directing package delivery to retail outlets. Additive investment will grow in Buy Online Pay in Store (BOPIS) options. Alibaba and JD.com have focus on growth through lower-tier cities, chasing fast growing, third place Pinduoduo's rural playbook to reach the next 600 million people.

If you think that freezer door just gave you a second look, you might be right. In their efforts to eliminate marketing misfires in the aisles, more retailers are investing in ways to physically connect with their customers within their stores. From cooler doors that recognize a face to dressing room mirrors that can dim the lights, retailers are investing in artificial intelligence (AI) for one key purpose: to accurately anticipate customer behavior at scale. This was a theme recently of the National Retail Federation's Big Show in New York. Specifically, retailers are using AI, facial recognition and other advanced technologies for their physical tracking capabilities, to make better sense of the factors that influence shopper purchase decisions in real time.

"It was magical, it was a moment in history," recalls Joseph Atick of the day in 1994 when the computer he and colleagues at Rockefeller University had built was able to recognize its masters' faces. As each of the three mathematicians introduced themselves, a metallic voice responded, "I see Joseph. Atick, who now chairs an organization that promotes identification technologies, says, "We didn't realize what we'd just done." Fast-forward two decades and picture a talking mannequin that greets a shopper by name as she enters a favorite store, informing her that pants that match the blouse she bought a week earlier have just been marked down. "It's just a matter of time until we start to see this technology reach shopping malls and beyond--it's ready right now," says Werner Goertz, a Gartner analyst who has authored a report on the adoption of facial recognition and other surveillance tools by retailers, casinos, and theme parks.