Regional Deep Dive: Data-Driven Retail Transformation in Latin America

Unifying Customer Data to Overcome Regional Complexity

Latin America’s retail landscape is as dynamic as it is diverse. With a patchwork of consumer behaviors, rapid digital adoption, and a legacy of fragmented data systems, leading retailers in the region face a unique set of challenges—and opportunities. The rise of Customer Data Platforms (CDPs) is enabling these organizations to break down silos, unify data, and deliver the personalized, omnichannel experiences today’s consumers demand.

The Challenge: Fragmented Data and Diverse Consumer Expectations

Retailers in Latin America often operate across multiple countries, each with its own regulatory environment, cultural nuances, and consumer preferences. Data is typically scattered across business units, geographies, and legacy systems, making it difficult to gain a holistic view of the customer. This fragmentation leads to:

As one leading retailer described, their data landscape included tens of thousands of tables and ETL processes, with little documentation and significant duplication. The inability to link structured and unstructured data from internal and external sources further constrained their ability to innovate and respond to market shifts.

The Solution: Building a Scalable, Cloud-Native CDP

To address these challenges, forward-thinking retailers are partnering with digital transformation experts to design and implement robust CDPs. These platforms unify customer, product, and transactional data from every touchpoint—online, in-store, mobile, and beyond—creating a single source of truth that powers advanced analytics and real-time personalization.

A standout example is Falabella Group, a retail and financial services leader operating across seven Latin American countries. By collaborating with Publicis Sapient, Falabella built a custom CDP leveraging cloud technology. Key elements of their solution included:

Measurable Business Outcomes

The impact of a unified CDP is transformative. Falabella, for example, has realized millions in business benefits through:

Initial results included a 37% reduction in transaction times and 80% of transactions completed without associate assistance in pilot stores, demonstrating the power of data-driven innovation in both digital and physical retail environments.

Best Practices and Lessons Learned

Latin American retailers embracing CDPs have surfaced several best practices:

Navigating Regulatory and Cultural Nuances

Latin America’s regulatory landscape is evolving, with increasing focus on data privacy and consumer rights. Retailers must implement transparent consent mechanisms, communicate data usage clearly, and ensure that personalization delivers tangible value to customers. Building trust is paramount—especially as consumers become more aware of how their data is used.

Cultural diversity also shapes consumer expectations. Successful retailers tailor their personalization strategies to reflect local preferences, languages, and shopping behaviors, leveraging the flexibility of modern CDPs to adapt quickly to market nuances.

The Role of Cloud Technology in Cross-Border Scale

Cloud-native CDPs are a game-changer for Latin American retailers operating across multiple countries. They provide:

Unlocking New Revenue Streams: Retail Media Networks

With the decline of third-party cookies and the rise of privacy regulations, first-party data has become a strategic asset. Retailers in Latin America are leveraging unified customer insights to launch Retail Media Networks—platforms that allow brands to target shoppers with relevant ads across digital and physical properties. These networks provide closed-loop reporting, real-time insights, and significant new revenue opportunities.

The Path Forward: Actionable Steps for Retail Leaders

  1. Assess your current data landscape: Identify key silos and prioritize those that will drive the greatest business impact when unified.
  2. Build a flexible, centralized data platform: Leverage cloud-native solutions to ensure scalability, security, and future readiness.
  3. Establish strong data governance: Create shared data domains, assign ownership, and implement clear policies for data usage and privacy.
  4. Activate advanced analytics and AI: Use predictive models to personalize experiences, optimize operations, and uncover new revenue streams.
  5. Monetize your data: Explore opportunities to launch or scale a Retail Media Network, turning your data into a high-margin, non-linear revenue source.

Why Publicis Sapient?

With deep expertise in digital business transformation and a proven track record in Latin America, Publicis Sapient is uniquely positioned to help retailers navigate the complexities of the region. Our end-to-end approach—spanning strategy, technology, data, and experience—ensures measurable business outcomes, from increased customer engagement and loyalty to operational efficiency and new revenue streams.

Ready to unlock the full value of your retail data in Latin America? Connect with Publicis Sapient to start your transformation journey today.