More digital and AI tools for local retailers to train staff, improve operations and revenue

SINGAPORE - More than 2,000 retailers in Singapore will get access to an expanded suite of digital solutions and tools to better serve customers, train staff, and move their revenue baseline forward.

They will also receive more support and guidance in adopting digital solutions, with greater emphasis on using AI-powered and AI-enabled technologies across all business touchpoints.

For example, retailers can make use of demand forecasting to optimise inventory management and make informed business decisions through data-driven insights and predictive analytics. They can also use generative artificial intelligence, or Gen AI, to create training systems or marketing and sales content.

These solutions are part of the refreshed Retail Industry Digital Plan (IDP), which was launched on May 26 by Enterprise Singapore (EnterpriseSG) and announced by Senior Minister of State for Trade and Industry Low Yen Ling.

The announcement was made at the Retail Reimagined – From Now to Next event held at *SCAPE, with members of the retail industry present.

The IDP was developed in partnership with the Infocomm Media Development Authority and was first launched in 2017.

It underwent a refresh in 2023, and in 2025, nine in 10 retail small and medium-sized enterprises (SMEs) reported productivity gains from digital adoption, citing reduced operating costs, increased market share and higher revenue as key benefits.

The latest version of the IDP introduces a restructured framework, now organised by business functions such as the full spectrum of front-of-house, back-of-house and corporate operations.

This eliminates the need for firms to first assess their stage of digital readiness. As a result, retailers of all sizes can now find targeted solutions for their specific operational pain points more quickly.

As many SMEs lack clarity on how to apply AI effectively, the refreshed IDP guides retailers in adopting these solutions to ensure they are able to utilise available technologies to stay competitive.

Ms Low, who is also Senior Minister of State for Culture, Community and Youth, said the retail sector plays a “critical part” in the economy and adds to the vibrancy of Singapore as a global city. She also recognised the operating challenges faced by retailers.

She said: “Costs have risen, manpower remains tight, and competition, particularly from global e-commerce players, has intensified. Conflating that, consumer expectations are also constantly evolving. The retailers who thrive will be those who know their customers well, reach them through the right channels, and use technology to improve efficiency... while keeping the human touch.”

At the event, Ms Low highlighted the Far East Flora group of companies as an example of a retail business that has adopted digital solutions with significant results.

Far East Flora has introduced self-checkout systems at its flagship Clementi store to streamline operations. This has led to a reduction in the cashiers’ workload by 30 per cent to 40 per cent, shortened queue waiting times for customers, and lessened the need for dedicated cashier counter staff. As a result, staff now have more time to focus on assisting customers.

The company has also adopted an AI-assisted marketing solution to sharpen its search engine marketing and campaign management for its website. This move resulted in an estimated 5 per cent to 10 per cent increase in returns without increasing marketing spends. Time spent on content creation was also cut by at least 50 per cent with the use of Gen AI.

Another example is jewellery brand, The Canary Diamond Co, which collaborated with Nanyang Polytechnic, through the AI Catalyst Programme supported by EnterpriseSG, to develop an AI-powered digital training system to tackle the challenges it faced in training its sales associates.

By using voice commands on a personal device, sales staff can enhance customer service by quickly accessing real-time inventory levels, product information and AI-generated product recommendations. Staff also receive a detailed report with areas for improvement after every sales pitch.

Mr Johnny Lam, the second-generation head of Canary Diamond, said: “The goal is not to replace the human relationship aspect of luxury retail, but to augment it – helping our sales staff spend less time searching for information and more time building meaningful relationships with clients.”

He said the brand has been “aggressively exploring AI and digital solutions across both customer experience and operational efficiency”, such as AI-assisted training and performance coaching.

By analysing sales interactions with consent and proper privacy controls, the system can help identify best practices, improve onboarding, and create more consistent service standards across the team.

Mr Lam added: “Longer term, we’re looking at technologies such as augmented reality-based jewellery try-ons, predictive customer preference systems, and AI-driven personalisation that can eventually create a much more immersive luxury retail experience.”

A second initiative, also launched on May 26, was the Retail Accelerator at L^IFE, a two-year retail incubator programme that will be operated by Innovate360 and supported by EnterpriseSG. It was developed in partnership with the Singapore Retailers Association (SRA) and Innovate360.

The 16 local retailers in the programme, which include beauty and wellness brands, fragrances, art and lifestyle and fashion, will enjoy subsidised rental at *SCAPE. They will also share facilities that include a live-streaming studio and a dedicated space to test their experiential concepts.

They will also have capability development workshops and one-on-one mentorships with SRA councillors and established industry leaders, with workshops covering topics such as visual merchandising and fund raising, as well as the refreshed IDP solutions to strengthen their digital capabilities as part of their business foundation.

Ms Low said the programme will build capabilities for long-term growth, give these brands opportunities to meet potential partners, and unlock internationalisation opportunities for the retailers as they grow.

The programme will also benefit both the shopper and broader retail landscape, she said, adding: “This space at *SCAPE will feature distinctive experiential retail concepts and a diverse range of products. It will offer customers an immersive experience, while adding fresh vibrancy to Singapore’s retail landscape.

“Singapore’s economic future depends on our ability to help businesses, especially our SMEs, adopt the tools of tomorrow. We must also create the right conditions for bold new ideas to take root and grow.”

Mr Gabriel Loo, 23, co-founder and head of marketing for streetwear brand Koyoyu Studio, said the brand joined the retail incubator programme to “experiment with physical retail and better understand how people interact with fashion and community in a real-world space”.

He said: “We hope to continue growing Koyoyu as a community, a fashion label and a creative platform, while refining our collections, storytelling and community-driven direction. In the long term, we would love to expand, both physically and online, regionally and internationally.”

Ms Jean Ng, 43, business and partnership director of wellness brand NestBloom, which is known for its freeze-dried bird’s nest shaped like a flower, explained that the company joined the programme as it goes beyond merely selling products to also building the brand, learning about experiential retail, and providing mentorship and ecosystem support.

“That’s especially valuable for emerging local brands navigating the transition from online growth into stronger physical and regional presence,” said Ms Ng.

Ms Jeannie Lim, assistant managing director for services and growth enterprises at EnterpriseSG, said the retail IDP and Retail Accelerator at L^IFE are designed to offer a clear pathway for retailers to tackle today’s challenges, take advantage of opportunities to leverage AI and technology, operate more efficiently, better engage their customers, and grow their businesses.

“Equally important is the ecosystem behind this effort: Through partnerships with the Infocomm Media Development Authority, Singapore Retailers Association and Innovate360, we are building a support network that helps retailers effectively transform, and positions the sector for long-term resilience and growth,” she added.

The IDP can be accessed online at smesgodigital.gov.sg/web/RetailIndustryDigitalPlan