The Challenge of Modern Retail: Technology, Culture, and Human Connection

At the Talkpush Americas Summit 2025, Isela García from El Palacio de Hierro shared a perspective that resonated with everyone in the room: technology is essential for retail transformation, but the true competitive edge still lies in people.

Beyond smart inventory systems and omnichannel operations, modern retail faces a bigger challenge: preserving human essence in an increasingly automated world.

The new reality of retail: efficiency is not enough

Technology has raised customer expectations everywhere. Today, shoppers want:

• Fast, frictionless delivery
  
• Real product availability
  
• The same experience in store, online, app, or phone
  

Amazon redefined the customer service playbook. But physical retail doesn’t just compete on speed—it competes on experience.

Once technology solves the operational basics, the next step is personalization. And that is only possible with trained, empowered teams connected to a strong culture.

Three fundamentals to master before thinking about AI

Isela outlined the operational basics every retailer must secure:

1. Customers no longer see channels

They expect a unified journey no matter where they buy.
Omnichannel is no longer a strategy; it’s a baseline expectation.

2. Clean and reliable inventory

If products aren’t displayed, located, or available, the experience breaks.

3. Technology serving the associate

Agile systems free staff from administrative tasks so they can spend more time with customers.

Once these three fundamentals are solved, AI actually becomes a real advantage.

AI as an enabler, not the protagonist

Through predictive models and automation, AI already improves:

• Inventory control
  
• On-floor product availability
  
• Response and fulfillment times
  
• Information flow to store teams
  

But its most valuable impact is freeing up human time.

AI doesn’t greet or guide customers.
AI clears the way so associates can do it.

In a world where digital shopping keeps growing, customers who choose to visit a physical store expect something meaningful—and that differentiated experience can only come from human interaction.

Culture, leadership, and training on the floor

To deliver memorable experiences, retail culture must support them. That requires:

• Store leaders who coach, model, and motivate
  
• Teams who understand the purpose of the brand
  
• Continuous training where it matters: on the sales floor
  

Traditional classroom training is no longer enough.
New generations learn by watching, doing, and receiving immediate feedback.

Floor leadership is the most critical factor in maintaining consistency across customer experiences.

The skills retail must develop for 2030

Artificial intelligence will not replace human connection; it will replace transactional tasks.
That’s why retail talent must strengthen the skills AI cannot replicate:

• Empathy and customer experience
  
• Active listening and storytelling
  
• Deep product knowledge
  
• Data-driven decision making
  
• Omnichannel execution
  
• AI literacy
  
• Cultural leadership
  

AI amplifies people—it does not substitute them.

Human connection as a competitive advantage

A personalized greeting.
A “great to see you again.”
A recommendation based on real customer needs.

That is what builds loyalty.

As Isela explained, customers return to Starbucks not because it has the best coffee, but because of the experience.

When associates have time, tools, and cultural clarity, they can create those moments that make customers want to come back.

What retail can start doing today

To compete in a landscape where AI will be standard, retailers must:

• Design a clear service journey
  
• Use data analytics to improve customer and employee experience
  
• Equip stores with technology that reduces friction
  
• Develop floor leaders who sustain daily operations
  
• Train on the sales floor, not just in classrooms
  
• Measure what matters: real experience indicators, not just volume
  

The final formula

The session ended with a phrase that perfectly sums up the future of retail:

Technology clears the path, culture brings us together, and human connection wins hearts.

Retailers who align these three elements won’t just be efficient—they’ll be unforgettable.