Retailers and tech vendors connected at last week’s NRF Big Show in New York to test the ways enhanced in-store analytics and edge computing are transforming customer understanding and service.
This heightened focus on leveraging data-driven operations reflects retailers’ ongoing efforts to bridge the gap between the granular consumer insights of e-commerce in the in-store shopping experience.
Faced with evolving consumer behaviors and increased competition, tech companies at the NRF Big Show showcased a variety of solutions, from advanced inventory management systems to tools that deliver deeper shopper insights, anticipating strong interest from retailers.
“We used to talk to stores about vision AI for operational efficiencies,” said Jim Lenox, VP of Global Sales at Sony AITRIOS, the consumer electronics brand’s B2B semiconductor unit. “But what we’re hearing now is that retailers want to sell that data back to brands.”
This shift highlights a growing trend: retailers monetizing first-party data through retail media networks while simultaneously enhancing store operations.
Sony is attempting to address these needs with edge computing technology, which processes data directly on devices in stores rather than relying on cloud infrastructure. This approach enables faster insights while addressing privacy concerns. The company’s IMX 500 intelligent vision sensor, for example, analyzes customer behavior at the shelf level without transmitting actual images — a significant consideration as retailers balance personalization with data security.
The technology is already proving successful in Asia, where 7-Eleven Japan has deployed Sony’s sensors in hundreds of stores. These systems track metrics like dwell time and customer attention, generating real-time data that optimizes operations and marketing.
Sony’s work reflects broader trends in retail. “AI is becoming transformative for our business,” said Doug Herrington, CEO of Worldwide Amazon Stores, during his NRF presentation. “We haven’t had a technology revolution this significant since the start of the internet.”
The AITRIOS edge platform for vision AI, which Sony has demonstrated at NRF for the past three years, aims to help retailers generate new revenue streams from in-store data while maintaining privacy. Lenox emphasized the demand for shelf-level insights, noting, “Retailers want to sell that data back to brands, which are spending millions to understand customer behavior.”
A strong holiday performance, coupled with increased access to shopper data, has made retailers more open to investing in technology. “Consumers came out to spend this holiday season, highlighting solid growth in the U.S. economy,” said NRF Chief Economist Jack Kleinhenz. He noted the continued trend of online shopping, driven by a shorter holiday calendar, alongside a resurgence of in-person shopping.
Certain sectors saw significant in-store growth, with furniture and home furnishings up 5.6% and electronics and appliances growing 3.7%. These gains underscore the enduring importance of physical retail and the value of better in-store analytics.
Looking forward, retailers are positioning physical stores as an integral part of the media ecosystem. “Stores could also be considered another media channel,” said Martin Urrutia, Head of Global Retail Experience and Innovation at The Lego Group. “You have TV, advertising, and magazines. Now stores are where you come to see the latest products.”
Another major theme at NRF was the intersection of AI and personalization. During a panel moderated by Forrester Research’s Brendan Witcher, retail executives discussed how biometrics, computer vision, and ambient intelligence are being combined with generative AI to enhance the customer experience.
While the potential for hyper-personalization is vast, some caution is warranted. “Natural language processing puts the onus on the customer to provide information,” said Trang To, Tapestry’s VP of Omni. “Hyper-personalization should focus on interpreting the ‘unsaid’ things the consumer is expressing.”
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