China has become the focus for companies looking to automate the physical shopping experience. Alibaba, Tencent and JD.com have all opened automated stores in the last few months, at the start of what they believe will be a large-scale rollout of personnel-free shops. The Chinese consumer's openness to high tech and willingness to try something new is expected to drive unprecedented growth of the retail industry in China as the country's 724 million mobile phone users increasingly accept mobile transactions. Improving internet connectivity and smartphone penetration are expected to boost sales even further, and retailers are also having to deal with labor pressures due to an aging population and the trend of millennials leaving retail to seek higher-paid work.

U.S. supermarket chain Kroger is partnering with U.K. Internet supermarket Ocado to build around 20 automated warehouses or “sheds” to improve its home delivery service after Amazon's recent buyout of Whole Foods shook up the retail industry. Ocado’s robot tech to process and pack orders is expected to give Kroger an advantage over Amazon. The move is in response to Amazon’s expected transformation of existing Whole Foods stores into a grocery delivery network using gig workers. However, experts believe Amazon is still looking at other options since it still operates mostly human-staffed warehouses for its Fresh grocery delivery service.

Retailers with an offline heritage are choosing to explore partnerships with the one retailer they fear, Amazon. Sears and Amazon have agreed that shoppers that buy tires on Amazon can be delivered to and fitted at Sears Auto Centers. Kohl’s is running a pilot in Chicago and Los Angeles to take Amazon returns and has made space to sell Amazon products. Other companies trying out deals with Amazon include Best Buy and Chicos. Although early signs are encouraging, previous tie-ups between Amazon and other retailers, including Toys R Us and Borders, proved unsuccessful. There are clear pros and cons: an alliance with the fast-growing internet retailer should help boost the retailers’ sales, for example, but some believe it might also make them even more vulnerable to Amazon.