Home > Business > Industry

Retail leaders counting on AI to 'improve,' not replace, traditional in-store experience

Published: 29 Oct. 2025, 16:12 Updated: 29 Oct. 2025, 18:24

KIM JU-YEON
[email protected]

Kim Sang-hyun, vice chairman and CEO of Lotte Retail Group, delivers a keynote speech at an Asia-Pacific Economic Cooperation (APEC) CEO Summit session titled ″Digital Transformation & Retail Efficiency,″ at Gyeongju Arts Center in Gyeongju, North Gyeongsang, on Oct. 29. [JOINT PRESS CORPS]

Kim Sang-hyun, vice chairman and CEO of Lotte Retail Group, said Wednesday that digital transformation is reshaping the retail landscape across Asia — not as a way to replace physical stores, but to “reinvent and improve” them.

“While e-commerce growth is impressive, physical stores still account for over 70 percent of retail sales in Asia,” Kim said in his keynote speech. “Digital transformation is providing retailers the opportunity to turn retail from simply shopping transactions to a superior shopping experience.”

Kim made the remarks in front of industry executives at an Asia-Pacific Economic Cooperation (APEC) CEO Summit session titled “Digital Transformation & Retail Efficiency,” held at Gyeongju Arts Center in Gyeongju, North Gyeongsang. The four-day summit, set to bring together around 20,000 people for discussions on economic growth and innovation, kicked off on Tuesday.

Kim particularly emphasized integrating artificial intelligence into retail operations. He cited examples from Lotte such as AI-based cameras that evaluate the sweetness of fruit and the quality of meat, AI shopping kiosks that serve tourists in multiple languages and AI sommeliers that recommend wines.

He also highlighted the need for responsible innovation and cross-border standardized regulations, as well as creating a sustainable system through digital transformation.

“Consumers are becoming more aware of the sector's potential environmental impact and the role that retailers can play in carbon footprints, food sources and security and reducing packaging and food waste,” he said, adding that digital transformation will allow retailers to “collect and leverage data to help protect our environment.”

“As we collect more personal and behavioral data, it is important that all retailers practice the highest standards of personal data protection,” he said.

“Customers will always seek out a human interface — and the idea is not that digital, or AI will replace this,” he added. “They will enhance the in-store experience and provide better human connection."

At the same session, Coupang's Chief Global Affairs Officer Robert Porter also delivered a keynote speech on leveraging AI in commerce.

“Coupang has invested billions to expand AI technologies, machine learning, advanced robotics, smart logistics, cloud computing and other innovations in the APEC region, which is supporting the growth of hundreds of thousands of small and medium enterprises from the U.S. and around the world that sell their goods through Coupang,” he said.

The e-commerce giant, like Lotte, has also integrated AI into retail operations, through functions like forecasting demand to predict what customers will want or by calculating the most efficient paths to deliver orders.

BY KIM JU-YEON [[email protected]]