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Retail in Latin America is undergoing an accelerated transformation. The combination of automation, artificial intelligence (AI) and big data is redefining operations, customer experience and competitiveness. Investment in smart retail technologies will grow globally by 24.9% annually until 2026, reaching US$68.8 billion, and the region is already actively participating in this wave of innovation (source: ITReseller, Research and Markets, 2023).

Investment and success stories in Latam

The technological modernization of retailing is advancing strongly:

  • Falabella will invest US$650 million by 2025 to open 15 new stores in Chile, Peru and Mexico, with a focus on omnichannel and digitalization.
  • Cencosud, Grupo Éxito and OXXO use AI to optimize inventories, logistics and offer personalization.
  • Rappi applies AI for demand forecasting and last-mile routing, while Dafiti relies on advanced analytics to improve fashion e-commerce.
  • In Peru, US$354 million is projected for new shopping centers by 2025, with a focus on digitalization and operational efficiency (source: Logística360; DFSUD, 2025).

These examples show that digital transformation is not exclusive to global giants: Latin American retailers are already capitalizing on technology to stay competitive with Amazon, Walmart or Mercado Libre.

Comparison with global retailers

Amazon, Walmart and Alibaba are leading technology adoption with advanced AI for logistics, inventory and personalized recommendations. Latin America still faces gaps in infrastructure and digital talent, but is closing the gap with solutions tailored to the regional context, such as generative AI customer service and predictive consumer analytics.

Omnichannel and last mile: new differentials

The omnichannel strategy is consolidating as a central axis of competitiveness:

  • Integration of physical stores, e-commerce, mobile apps and marketplaces under a unified data flow.
  • Fulfillment automation and order management platforms (OMS) to deliver a consistent experience.
  • Last mile innovation with predictive platforms, urban micro-fulfillment, dark stores and smart lockers, even drone pilots and autonomous vehicles.

The result is greater loyalty, increased sales and the ability to compete with global e-commerce.

Barriers and challenges

Digital transformation in retail still faces significant challenges:

  • Uneven infrastructure outside large cities.
  • Technology implementation costs that especially affect retail SMEs.
  • Shortage of talent specialized in AI, data and automation.
  • Cultural resistance to change in operational teams.
  • Increasing cybersecurity risks due to the massive handling of sensitive data.

Consultancies such as McKinsey, Deloitte and Bain agree that success will depend on adopting a digital culture, investing in training and deploying regulatory frameworks that balance innovation and security.

Emerging Innovations: Generative AI and retail design

Generative AI is already being applied in marketing and retail for:

  • Create hyper-personalized campaigns.
  • Design virtual showcases and optimized store layouts.
  • Simulate physical space configurations prior to implementation.

These applications combine creativity and data, transforming both the consumer experience and the operational efficiency of retailers.

Closing

Digitalization in Latin American retail is no longer a project, it is a condition for survival. Automation, AI and big data are the new competitive core. Retailers that manage to integrate these technologies with omnichannel and smart logistics will be in a position to lead by 2026.

At FactorIT we see that the real challenge is not only to adopt tools, but to align technology, culture and talent to transform the operation into operational intelligence. The future of retail in the region will belong to those who convert data into real-time decisions and experiences.

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