From hyper-personalization to compliance automation to product management, the digital transformation in retail bears many similarities to the digital transformation taking place in financial services.

In both instances, greater digitization and enabling technologies like AI and machine learning, are empowering businesses to better know and serve their customers, build innovative solutions and services, and secure their operations and their customers’ data against cybercrime.

We caught up with Lohith Kumar Paripati (LinkedIn), Product Lead at Walmart, to talk about the digital transformation in retail. In our extended conversation, we discuss Walmart’s efforts to make ecommerce more effective for merchants, the pain points retail customers are currently facing, and how innovations in AI and an emphasis on personalization are helping enhance the customer experience.

At FinovateSpring earlier this year, you were involved in a discussion on digital transformation in retail. What were some of your key takeaways?

Lohith Kumar Paripati: I was privileged to be part of this event as a panelist and speaker at FinovateSpring, where I discussed how AI and LLMs are revolutionizing retail through improved operational efficiency and personalized customer experiences. My reflections touched on the impact GenAI is having on the industry with its hyper-personalized recommendations as well as robust payment offerings, thus changing the purchasing experience.

What caught my attention was the buzz throughout. FinovateSpring has always been known for its exciting ambiance, and this year’s event was no different. There were live demos from various innovative companies that kept me tuned in while networking opportunities were unrivaled. From my fellow panelists, I heard insights about bridging ecommerce and in-store experiences for Gen Z consumers who want seamless technology-driven relationships.

The event reiterated that Finovate isn’t just about presentations but is also a forum where leaders in the industry converge towards innovation, networking, and learning.

You spearheaded the Walmart Seller Savings Platform. What are its goals? How do you measure success?

Paripati: The Seller Savings Platform has been built around the idea of seller success and offers financial incentives that promote best practices on the marketplace. The platform encourages sellers to offer affordable pricing and delivery speed, as well as maintain product listing quality, which are important drivers of sales growth for them.

Through the platform, we introduced a various programs such as Pro Seller, which gives visible importance and credibility through a badge and also reduces referral fees by 5%. Furthermore, with the Pro Listing program, sellers who have the ability to deliver their items fast and on time, or at low prices, can get an extra 10% discount. For new sellers, the New Seller Savings Program offers up to 25% fee reduction for the first 90 days while providing them with tools like Walmart Fulfillment Services and Sponsored Search ads that help them grow more quickly.

The key aim of this platform is to encourage sellers by offering resources and incentives that contribute towards better business outcomes. Success is measured by seller performance metrics: delivery rates, customer satisfaction levels, and program participation. At its core, however, it is all about helping sellers reach their goals, boost GMV figures, and improve overall marketplace experience for all.

How did your experience at technology companies like Microsoft, Intuit, and Samsung inform the work you did for Walmart?

Paripati: Microsoft, Intuit, and Samsung gave me a strong foundation in product management, strategic thinking, and customer-centric innovation skills that I’ve applied to multiple projects for Walmart. At Intuit, I developed deep expertise in fintech and commerce which has been invaluable in shaping initiatives like the Walmart Seller Savings Platform.

In my tenure with Microsoft, I was able to lead and drive solutions within large organizations structures. That experience empowered me to build comprehensive payments data infrastructure of Walmart sellers. From Samsung, I learned how to drive innovation in big firms so that every fresh thought is effectively integrated into previous systems. This enabled me to introduce more payment/billing options available to Walmart sellers in multiple geographies.

A combination of creativity, tactical planning, and working together are what have shaped my ambition for creating a suite of products and tools for merchants within the walls of Walmart Marketplace.

Were there any interesting challenges on the road to launching the platform?

Paripati: Managing the scale and complexity of Walmart’s vast marketplace was one of the greatest obstacles I faced when building the platform. We had to have a system that can manage personalized saving programs for thousands of sellers and millions of items while at the same time be accurate, transparent, and responsive in real-time, especially during peak times like holidays.

Also important was balancing technical requirements with wider business goals. We had to make sure that platforms like this supported objectives such as increased seller engagement or customer satisfaction without being too expensive. This meant working continuously with other people within finance, operations, and marketing–among others–ensuring that value is delivered at each level.

Another crucial aspect was building adaptability into our architecture. We needed an infrastructure that would not only satisfy today’s needs but also support future initiatives. The key takeaway points were learning about how scalability is important and how cross-functional collaboration can be powerful. Successful launch required seamless coordination between product, engineering, and business teams, resulting in both technological excellence and strategic impact.

You’ve been a Product Manager for technology companies for more than a decade now. How has that job changed over the years?

Paripati: Over the years, my role as a product manager has evolved from being feature-focused to becoming a central driver of business strategy. Early on, my work involved managing specific product features and ensuring their successful execution. As I progressed into leadership, my responsibilities expanded to include not just product development but also aligning those products with overall business objectives, balancing customer needs with strategic goals, and pivoting quickly when necessary to stay ahead in the market.

In the broader industry, product management has shifted from being a function focused on execution to becoming the core of business success. While stakeholder management and collaboration have always been key aspects, today’s emphasis is on creating a product-first culture. Product managers are now at the forefront of driving revenue, building scalable products, and contributing directly to the company’s financial success.

Today’s product managers must be agile, ready to pivot as market demands shift, and play a crucial role in shaping the company’s direction through data-driven insights and a deep understanding of customer needs. This evolution has made the role more dynamic, impactful, and integral to a company’s growth.

What role will enabling technologies – AI, machine learning, automation – play in the digital transformation of retail?

Paripati: AI, machine learning, and automation have altered retail by offering practical use cases that improve operations as well as customer interactions.

For example, AI-powered demand forecasting predicts product trends, thereby optimizing inventory levels and reducing costs. Inside stores, real-time shelf stock monitoring using computer vision driven by AI detects when items are running out, thus alerting attendants to restock before shelves go empty. Automated checkout systems make shopping faster by eliminating traditional checkout lines for frictionless shopping experiences.

Customer experiences are made more personalized by machine learning that result in product recommendations that continuously adjust prices. From the comforts of their homes, customers can virtually have a look at themselves with the help of AI-driven virtual try-ons.

In logistics, robotic automation accelerates order fulfillment, but delivery times are being reduced through automated delivery systems such as drones and autonomous vehicles. These technologies are revolutionizing retail, making it more efficient, agile and consumer-driven.

Where are the biggest pain points for retail consumers and how will this transformation in retail help resolve them?

Paripati: A major concern among retail customers is the disconnection between online and offline experiences. Several retailers find it difficult to provide customers with a seamless experience across all channels, even though that is what they expect today. Moreover, digital transaction fraud rates are very high, and payment security issues loom large as consumers become more concerned about security. Additionally, consumer retention becomes difficult when there are an overwhelming number of product choices due to a highly competitive landscape where retailers vie for customer loyalty.

The digital transformation of the retail industry addresses the problem by merging physical with digital channels to create an omni-channel experience. To achieve greater confidence from buyers, Artificial Intelligence (AI) and automation are used to secure payments while reducing fraud. In order to maintain customer loyalty in an extremely competitive market, retailers use their personalized offers alongside loyalty programs which improve shopping experience.

However, there are many countries where access to even basic goods remains an issue. It is an opportunity and a responsibility that retailers have to enlarge their reach and ensure that underserved consumers get hold of essential products. By using innovative distribution networks, technology can be employed by retailers to bridge this gap, provide more equitable access to goods, and ensure everyone benefits from the digital transformation in the retail industry.

What excites you most about what’s happening in the retail space right now that few people are talking about?

Paripati: Embedded finance has already been discovered as one of the greatest things happening in retail, even if it is not widely recognized. The ability to integrate financial services directly into the retail experience changes everything. On-demand lending at checkout, digital wallets, and buy-now-pay-later options are all instances of embedded finance which alters how consumers work with retailers.

The convergence of AI with physical retail is another area that fascinates me. Advancements in AI are enabling us to introduce new approaches to improving the shopping experience, such as using AI-based tools to customize product displays or optimize store layouts according to customer behavior. This blend of digital and physical is establishing a new frontier for retailers – a world that allows them unlimited space for innovation.

Photo by Karolina Kaboompics