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Retail reimagined

Creating luxury customer experiences using data-driven insights

Generative AI (GenAI) personalises shopping with virtual stylists & chatbots, but ethical considerations linger. Dive in to see how luxury brands can win over discerning clients in this new digital age.

The face of luxury retail is changing. While exceptional service has always been a hallmark, customers now expect more than champagne and a friendly face. Digitalisation is surging and GenAI is pushing the boundaries of the shopping experience. From virtual stylists to AI chatbots, luxury brands are exploring new frontiers, but ethical and data security concerns remain.

Our latest report dives into how luxury retailers can cautiously embrace GenAI to deliver the kind of immersive experiences today's discerning customer craves. It's no longer about just selling products; it's about building a community hub and offering meaningful interactions. Customers expect seamless experiences across all channels, physical and digital and GenAI combined with data can make that a reality. As the luxury market evolves, retailers who invest in high-end experiences and leverage GenAI will be the ones to capture the hearts (and wallets) of top spenders.

"With more consumers blurring the lines between online and in-person shopping, luxury retailers must enhance their digital presence and deliver seamless experiences across all channels—moving away from pen-and-paper methods to service the top 1% of their client base.”

-Evan Sheehan, Retail, Wholesale & Distribution Sector Leader, Deloitte Global

Explore the case studies

Bata, a footwear leader since 1894, is embracing innovation through data analytics and GenAI. Led by their CIO, Luca Demarchi, they're implementing cutting-edge solutions to:


  • Optimise stock: AI forecasts customer preferences, ensuring shops have the right products, reducing waste.
  • Enhance Customer Experience: AI-powered chatbots answer questions and track orders, while "voice of the shop" gathers feedback from managers.
  • Personalise marketing: GenAI segments customers for targeted marketing messages, leading to a 50% conversion rate increase.

"Thomas Bata, our visionary founder, was ahead of his time. He advocated not just for business expansion but also for societal change. We’ve inherited his forward-thinking perspective. Today Bata’s mission transcends mere profitability; it's about enhancing lives. This ethos helps us to connect more deeply with our customers and go to market faster. To maintain our visionary status, embracing new technologies is crucial." says Luca Demarchi, Group CIO, Bata.

Bata is exploring further AI applications for back-office tasks and future in-store experiences.

Majid Al Futtaim, a luxury retail leader in Dubai, is using data analytics, machine learning and GenAI to elevate the customer experience across its brands. Here's how:


  • Smart inventory & product recommendations: Machine learning predicts customer needs and suggests alternatives, reducing inventory and boosting revenue by 12%.
  • Personalised content & targeting: Data insights power targeted marketing and personalised product recommendations based on browsing behaviour and purchase history.
  • Immersive shopping experiences: The THAT Concept Store features "magic mirrors" for easy size/colour requests and in-store personalisation tools for staff to recommend complementary items.
  • Focus on high-value customers: Majid Al Futtaim personalises experiences for top spenders (27% of revenue) with targeted marketing and gifting strategies.
  • Augmented Reality: AR tools let customers virtually try on makeup (Shiseido) and visualise furniture in their homes (Crate & Barrel, CB2).

Our customer strategy is built on a commitment to relevance. Through our immersive experiences, we strive not only to meet but also to anticipate customer expectations. Our aim is to leave lasting impressions and foster meaningful engagement,” says Fahed Ghanim, CEO, Majid Al Futtaim Lifestyle

This data-driven approach creates a seamless and personalised shopping experience, driving customer loyalty and revenue growth for Majid Al Futtaim.

Deloitte is transforming the Olympic fan experience for the IOC. Millions follow the Games from afar and Deloitte is helping create a more personal connection. Here's how:


  • Deep dive into fan experience: Analysing existing digital channels, Deloitte identified ways to leverage data for personalised content.
  • Fan data platform: This platform will deliver personalised updates, highlights and even video content based on fan preferences.
  • Focus on what fans love: The goal is to empower fans to immerse themselves in the sports and athletes they follow.

"Personalisation and segmentation are going to have the biggest impact in the way that the Olympic Games are enjoyed by the fans at the live event and those cheering from home. They are what allow us to create a more connected, immersive experience during the Olympic Games and between each edition," says Michelle McGuire Christian, Digital Experience Lead, Deloitte Consulting LLP

By creating a personalised experience, Deloitte is helping the IOC fulfil its mission of building a better world through sport.

Retail faces a perfect storm - changing consumer habits, volatile supply chains and evolving expectations. Risks are high, but budgets are tight.

Inspired by McLaren F1: Deloitte leverages digital twin technology, used by McLaren to strategise races, to help retailers make confident decisions.

How it Works: Digital simulations replicate real-world scenarios, allowing retailers to:


  • Test Market Entry Strategies: Simulate demand and optimise product offerings for success in new markets.
  • Optimise Supply Chains: Model different configurations to minimise stockouts, improve delivery efficiency and reduce carbon footprint.
  • Right-size Store Networks: Analyse store performance and identify opportunities for repurpose or relocating shops.

Deloitte empowers retailers to make informed decisions and build resilient business models for the future.

"In the realm of AI-driven commerce, innovation must be guided by ethical oversight and robust regulation. From protecting intellectual property to addressing algorithmic bias, transparent governance is essential."   

-Ida Palombella, Partner, Deloitte Legal, Global Fashion & Luxury Co-Leader

Luxury retail is using GenAI to create a more personalised shopping experience, but building trust with customers is crucial.  While challenges exist, GenAI offers exciting possibilities for deeper connections and innovation. Retailers must carefully implement GenAI, focusing on data quality and transparency to deliver exceptional service and elevate the brand.

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