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Retail in Latin America is undergoing a profound digital transformation. The integration of artificial intelligence (AI), big data, automation and omnichannel strategies is redefining the region's competitiveness against global giants such as Amazon, Alibaba and Walmart. The bet not only seeks operational efficiency, but also to generate more personalized, agile and sustainable experiences for an increasingly digital consumer.

Technology investment on the rise

The global market for smart retail technologies will grow at an annual rate of 24.9% until 2026, reaching US$68.8 billion (source: ITReseller). In this context, Latin America is rapidly increasing its investments in digitization, automation and omnichannel.

  • Peru projects more than USD 354 million in new shopping centers with a strong focus on digitalization and e-commerce by 2025 (source: Logística360).
  • Falabella announced an investment of USD 650 million in 2025 to expand its network and strengthen its digital modernization in Chile, Peru and Mexico (source: DFSUD).
  • Retail media is also growing: in the region it is expected to exceed USD 5.45 billion by 2028, driven by the use of proprietary data and real-time personalization (source: RemMedia Consulting).

These figures reflect the fact that retail digitization is no longer an option, but a condition of competitiveness.

Success stories in Latin America

The impact of these investments can be seen in concrete examples:

  • Rappi: use of AI for demand forecasting and last mile optimization.
  • Grupo Éxito and OXXO: integration of AI in inventories and logistics, improving efficiency and customer service.
  • Dafiti (Brazil): data intelligence applied to e-commerce fashion.
  • Farmacity (Argentina): integration of physical and digital channels to offer unified experiences.
  • Cencosud and Walmart Mexico: deploying AI for personalization and dynamic pricing.

These cases demonstrate how the region is already applying technology to respond to more demanding, digital and informed consumers (source: EHLATAM).

Comparison with global giants

Amazon, Alibaba and Walmart lead retail tech with advanced AI in logistics, predictive analytics, dynamic pricing and mass customization. Their strength lies in robust digital infrastructures and specialized talent at scale.

Latin America, on the other hand, is moving forward with solutions adapted to its context: omnichannel, store automation and predictive platforms for urban logistics. Although there is still a gap in infrastructure and digital talent, the dynamism of its fintechs and regional retailers aims to reduce it.

Omni-channel and last mile as differentiators

Omni-channel is emerging as a major competitive advantage. Retailers integrate e-commerce, mobile apps, physical stores, marketplaces and social channels under a single data flow. This generates consistent experiences and customer loyalty.

In parallel, the last mile is becoming a key field of innovation. From predictive delivery routing platforms to pilot tests with autonomous vehicles, drones and urban micro-fulfillment, the region is looking for greater efficiency, lower costs and reduced environmental impact.

Remaining barriers and challenges

Despite progress, challenges remain that limit the speed of adoption:

  • Uneven technological infrastructure outside large cities.
  • High implementation and maintenance costs.
  • Shortage of talent specialized in AI, big data and automation.
  • Cultural and regulatory resistance to digital transformation.

Overcoming these obstacles will require technological alliances, internal training and more flexible regulatory frameworks.

Generative AI: the new creative engine

One of the most promising trends is the use of generative AI in marketing and store design. Tools such as ChatGPT, Gemini or MidJourney allow:

  • Create hyper-personalized campaigns.
  • Design virtual showcases adapted to local preferences.
  • Simulate store layouts to optimize the physical experience before implementation.

This opens a new era of creativity and efficiency for Latin American retail.

Outlook to 2026 and 2030

According to global consulting firms:

  • McKinsey: more than 78% of retailers already use AI in key functions; by 2030, personalization and automation will be core growth drivers.
  • Deloitte: Operational efficiency and technological innovation will define customer loyalty.
  • BCG: digital cultures oriented to continuous learning will be the true competitive differential.

In this scenario, Latin America has the opportunity to consolidate itself as a hybrid, digital and data-centric retail ecosystem, capable of competing globally.

Final reflection

Latin American retail is at an inflection point. Automation, AI and big data are already the new technological core that will mark who will survive and prosper in the next decade. Retailers that manage to integrate technology, logistics and customer experience in an operational intelligence model will be the ones to lead the transformation.

At FactorIT, we note that this path requires not only investment in infrastructure, but also strategic vision and cultural change management: technology is only an enabler; the real competitive advantage will be how organizations adopt it to redesign their value proposition.

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