AI for Sustainable Practices, Personalization: The Week in Retail

This week, MBN experts have shared insights on how AI is revolutionizing retail by enabling faster analysis of customer data and personalized shopping experiences to boost sales. Additionally, as consumers increasingly prioritize sustainable shopping, AI can assist brands in adopting more eco-friendly practices. Meanwhile, TikTok has delayed the launch of its e-commerce platform in several markets, including Mexico.

Explore more in this weekly roundup!

Smarter Retail: How AI is Rewriting the Rules of the Game

Expert Francisco Alvarez, COO and co-founder, Getin writes about how Artificial intelligence (AI) is revolutionizing the retail industry by enabling personalized customer experiences and optimizing supply chain management. AI's ability to analyze vast amounts of data allows retailers to predict consumption trends, adjust inventories, and enhance physical store layouts based on customer behavior. 

Next-Gen Tech Puts Sustainable Ops Within Reach of Retailers

Latin American shoppers are increasingly prioritizing sustainability, writes John Gregg, Regional VP and General Manager LATAM, Sensormatic Solutions, with 44% ceasing to buy environmentally harmful products, highlighting a resurgence in eco-conscious consumer behavior. Retailers in the region are urged to adopt sustainable practices, such as using AI and data analytics for inventory optimization, reducing energy consumption, and minimizing plastic waste, to meet growing consumer demands. 

TikTok Halts Launch of E-commerce Platform in Mexico

TikTok has postponed the launch of its e-commerce platform in several countries, including Mexico, originally set for July, with no clear timeline for resumption. This decision may be linked to TikTok's efforts to grow its US presence amid potential bans due to national security concerns, which President Joe Biden supports. Despite these challenges, TikTok continues to expand its advertising tools and remains highly engaging in markets like Mexico, where users spend an average of 45 hours per month on the app, prompting advertisers to increase their budgets significantly.

Dollarcity Expands into Mexico with Dollarama Partnership

Dollarcity, a Latin American discount retail chain, is expanding into Mexico through a partnership with Canadian retailer Dollarama, with plans to open a pilot store by 2026 under the new entity Mexican Commercial Investments (ICM). Dollarama will hold an 80% stake in ICM, and Dollarcity's founders will retain 19.9%, as Dollarcity prepares to compete with established Mexican discount retailers such as Walmart de Mexico's Bodega Aurrerá and FEMSA's Bara.

Chedraui Faces Customer, Employee Complaints in US, Mexico

Grupo Chedraui faces a surge in customer and employee complaints in both Mexico and the United States, including issues with spoiled products, poor customer service, and unfair working conditions. Employees report excessive work hours, lack of support, and inadequate wages, while accusations of labor rights violations by its subsidiary Bodega Latina have emerged.