What: Lotte Retail is advancing customer-centric digital transformation by integrating AI, retail media networks, and data privacy measures across its extensive store network.

Why it is important: Lotte’s approach highlights the convergence of digital transformation, retail media, and data privacy.

Lotte Retail is placing customer experience at the heart of its digital transformation strategy, as emphasised by CEO Kim Sang-hyun at the APEC CEO Summit. Despite the rapid growth of e-commerce, Kim noted that over 70% of retail sales in Asia still occur in physical stores, underscoring the enduring value of in-store engagement, personalisation, and added value. Lotte is deploying a suite of advanced digital solutions—including AI-driven product analysis, multilingual kiosks, 3D virtual consultations, and unmanned payment systems—across its 12,000 domestic outlets to elevate both customer experience and operational efficiency. The company is also embracing retail media networks, installing in-store screens to deliver targeted advertising and collect valuable customer data, thereby generating new revenue streams and insights for improved merchandising. Kim acknowledged the challenges posed by data privacy and regulatory requirements, stressing the need for robust standards and transparency. He further highlighted the importance of public-private cooperation and sustainability as retail adapts to cross-border commerce and environmental concerns.

IADS Notes: Lotte Retail’s strategy mirrors industry trends identified in March 2025 (“How AI-driven hyper-personalisation is transforming retail,” Inside Retail) and November 2024 (“The great personalisation divide in retail,” BCG), where hyper-personalisation and community engagement are increasingly vital. The adoption of advanced digital solutions aligns with December 2024 (“China's retail AI adoption hits 230M users as local platforms take lead,” SCMP) findings on interactive store technologies and rapid AI integration. The expansion into retail media networks reflects July 2025 (“From browsing to buying: the quiet power of retail media,” MBS) and June 2025 (“How new revenue streams are transforming traditional retail,” BCG) reports on new revenue models, while the emphasis on data privacy and regulatory compliance echoes concerns raised in September 2025 (“Bain & Company: Technology Report 2025”) and November 2024 (“Data privacy and trust shaping consumer preferences,” Forbes), confirming the importance of trust and security in digital retail.

Lotte Retail chief stresses customer focus in digital era