The retail industry has seen massive changes over the last decade, and now a new trend is emerging which is called Adaptive Retail. This new way of shopping is designed to meet customers exactly where they are and give them what they need in a way that suits them best. It goes beyond combining online and in-store shopping by focusing on the reasons behind each purchase. It’s all about understanding and catering to unique shopping habits and preferences.
Suresh Kumar, Walmart’s Global Chief Technology Officer and Chief Development Officer, explained that retail has entered a new era, focused on deeply personalized shopping experiences. He emphasized that each shopper determines how, where, and when they want to buy products, and understanding the context behind each purchase is crucial. Kumar noted that retailers must predict customers’ needs, simplify decision-making, and offer highly personalized experiences. He believes the future success of retail will depend on how well companies can anticipate and meet these changing expectations.
To learn more, Walmart partnered with Morning Consult to survey over 2,200 U.S. shoppers. The goal was to understand how Adaptive Retail is shaping shopping today and what it might look like in the future.
This year’s survey revealed four key trends, all pointing to one major insight: Retailers that can predict individual customer needs, offer personalized suggestions, and deliver at the perfect moment will be the ones to succeed. Adaptability, instant accessibility, and custom “do it for me” experiences will no longer be optional; they are now essential.
Richard Kowalski, Senior Director of Business Intelligence at the Consumer Technology Association, who reviewed the report before publication, commented that advancements in technologies like augmented reality and artificial intelligence are changing how consumers interact with retailers. Kowalski noted that recent research from Walmart and Morning Consult shows that consumers have high expectations for technology to improve their shopping experiences. He believes that retailers who use technology to offer more personalized shopping journeys, seamlessly fitting into consumers’ lifestyles, will thrive in the Adaptive Retail era.
While this year’s report provides valuable insights, it captures just one moment in time. Customer preferences are constantly changing, which makes the innovative approach of Adaptive Retail even more powerful.
As consumers evolve, so too must retail strategies. The true strength of Adaptive Retail lies in its flexibility, allowing it to adapt to these shifts and continue to meet customer expectations effectively.
Walmart has introduced a new strategy to speed up "Adaptive Retail," a modern way of shopping that focuses on creating highly personalized experiences. This approach aims to meet customers’ needs and preferences in exactly the ways they want to shop.
The company showcased its use of advanced technologies like artificial intelligence (AI), generative AI (GenAI), augmented reality (AR), and immersive commerce. These tools are designed to make shopping more personal, convenient, and engaging, whether in Walmart stores, Sam’s Clubs, mobile apps, or virtual spaces.
Suresh Kumar, Walmart's global chief technology and development officer, explained that traditional search bars are no longer the quickest way to shop. Instead, technology must adapt to each customer's unique needs. He highlighted that Walmart’s strategy focuses on building shared global tools that can be used across Walmart U.S., Sam’s Club, and Walmart International. This approach allows the company to move quickly and provide consistent shopping experiences for all customers.
Walmart has developed its own GenAI platforms, including a new system called Wallaby. Wallaby is a series of large language models (LLMs) designed specifically for retail. It is trained with years of Walmart data, allowing it to work alongside other LLMs to create highly personalized and relevant responses for Walmart’s customers. Wallaby is also trained to communicate in a natural, friendly tone that reflects Walmart’s core values.
Using these GenAI platforms, Walmart has improved its AI-powered Customer Support Assistant. The updated version recognizes customers right away and doesn’t just understand their requests but also takes action, like locating orders and handling returns. Customers who tested the new assistant reported a smoother experience and quicker resolutions to their issues.
Walmart is also developing many more GenAI tools for customers, associates, members, and partners. These include advanced care assistants for Sam’s Club and Walmart International to provide even better support.
Walmart knows customers want personalized shopping experiences, and it sees personalization as a key to making shopping better. To achieve this, Walmart has created a Content Decision Platform. This platform follows Walmart’s Digital Trust Commitments and Responsible AI Pledge and is designed to provide customized shopping experiences for each customer. It uses AI technology to understand customer preferences and a GenAI tool to predict the kind of content customers would like to see on the website. The platform is already being tested in some parts of Walmart.com.
With this technology, Walmart will offer each shopper a unique homepage, making online shopping feel as personal as visiting a store made just for them. This personalized shopping experience is set to launch in the U.S. by the end of next year. Walmart also plans to use this technology in Canada and Mexico to give personalized product recommendations, setting a new global standard for retail.
Retail is no longer just about shopping online or in-store; it's about reaching customers in new places, especially younger generations who often shop while doing other activities, like gaming. To do this, Walmart has created an augmented reality (AR) platform called Retina. It uses AI, GenAI, and automation to create thousands of 3D assets and provides Immersive Commerce tools. These technologies help Walmart bring shopping into virtual environments, creating new opportunities for growth and leading the way in Adaptive Retail.
Walmart was the first major retailer to try real-world shopping on Roblox and launch Walmart Realm, a virtual shopping destination. Now, Walmart is testing its Immersive Commerce tools with Unity and will also launch a new experience on the social platform ZEPETO later this year. On ZEPETO, customers will be able to buy items for their virtual avatars and the matching real-world products for themselves.
Retina also powers 10 AR experiences across Walmart U.S. and Sam’s Club, which have led to a 10x increase in customer and member adoption, fewer returns, and better sales. Walmart plans to expand these experiences to Canada, Mexico, and Chile and add new features, like “hotspots,” that give customers more product details when they view an item in 3D. The company is also working on headset-based experiences to help customers see how furniture would look in a real setting.
Suresh Kumar, Walmart’s global chief technology officer, explained that Walmart’s focus is on meeting human needs. He said a mix of technologies like AI, GenAI, AR, and Immersive Commerce is often the solution, and Walmart is ready to respond to whatever customers need.
- Aishwarya Dinesh (Equity Research Analyst)
