Global trade policies are shifting. Supply chains are being reconfigured. Competitors with leaner cost structures are entering established markets. Retail leaders know this terrain well. Yet in such an environment, the ability to anticipate, test and execute decisions with speed and precision is becoming a decisive factor. Digital twins offer a way forward. A means to model, measure and adapt operations before making costly real-world changes. While the technology has long been associated with manufacturing, advances in AI, IoT and cloud platforms are unlocking its full potential for retail — and early adopters are already shaping the competitive landscape.
Real-time modeling vs. traditional analytics
Traditional retail analytics excel at explaining the past but often fall short in predicting what comes next. They typically rely on historical data that is not updated in real time, with data often stored in silos that make getting a cohesive view of insights across operations, supply chain, customer experience and merchandising difficult at best.
FACT: Digital twins have been around since the 1960s, with the NASA Apollo program leveraging duplicates of the spacecrafts.
A digital twin changes this paradigm. It is a living, continuously updated model of the retail environment that integrates real-time signals from sensors, point-of-sale systems, supply chain feeds, and even unstructured sources, such as social media. This unified model allows leaders to run simulations, assess the likely impact of a change, and refine strategies before committing resources. In effect, it becomes a decision laboratory that complements, rather than replaces, existing analytics capabilities.
Retail adoption has been slower than in other sectors, in part because digital twins have been perceived as a manufacturing-centric tool. That perception is shifting quickly, however, as the underlying technologies mature and the pressure to respond to market change accelerates.
Retailers do not have to commit to enterprise-wide deployment of a digital twin to see tangible benefits. Early successes often come from targeted projects where the impact is measurable and the scope is manageable.
Pinpoint use cases to kick-start results
A retailer creates a digital twin of their flagship store.
By analyzing real-time IoT sensor data and sales trends, retailers can simulate customer flow. The digital twin shows that moving high-demand seasonal products closer to the entrance increases sales. The recommendation is then pushed to the store and results are tracked automatically.
In the supply chain, twins can model disruption scenarios and identify alternate sourcing or routing strategies that protect margin and customer service levels. Customer-facing innovations, such as virtual try-ons or personalized product recommendations, can be tested in the twin to assess their effect on engagement and returns. And, at the operational level, monitoring in-store equipment through the twin allows for predictive maintenance, avoiding downtime that impacts both experience and revenue.
Importantly, mid-sized retailers can also take advantage of these capabilities by starting with a focused use case and leveraging cloud infrastructure to control costs, scaling as benefits are realized.
“Retailers that embed digital twins in day-to-day decisions see faster scenario testing, fewer service disruptions, and greater product availability — without replacing core systems.” — Alexandra Pinto, Global Head Retail Industry – Oracle Practice, Wipro
Oracle and Wipro promise a new retail reality
While major cloud providers such as Azure and AWS offer services for digital twin creation, Oracle’s retail-focused capabilities provide a strong foundation for implementation at scale. Oracle IoT Cloud Service can establish and manage digital twins fed by real-time sensor data, while Oracle Retail Data Store Cloud Service supplies the data infrastructure and advanced analytics needed to simulate operations and test scenarios. This alignment of IoT, data management, and analytics within a single ecosystem simplifies deployment and supports faster time-to-value.
As well, a critical component for success in the implementation of digital twins is ensuring you have the right partner to support you. By combining Wipro’s retail industry-focused expertise with Oracle technology, you can embrace the convergence of transformational technologies, such as digital twins and AI, and continuously evolve to meet consumer expectations.
A practical path to early wins
Successful adoption often begins with a proof of concept that aligns to a clear business objective. This might be improving conversion in a flagship store department, increasing on-shelf availability in a high-margin category, or shortening fulfillment times in a regional distribution hub. The scope should be narrow enough to deliver quick results but representative enough to demonstrate value to decision-makers.
Data discipline is essential. Digital twins are only as reliable as the information they ingest, so ensuring data quality and consistency is a foundational step. This includes aligning product hierarchies, validating inventory signals, and clarifying which systems serve as the source of truth for each data element.
From there, expansion should follow a measured rhythm: prove the concept, communicate results, secure investment, and broaden the scope. This approach builds internal confidence while mitigating risk. Cloud services — particularly Oracle’s retail-specific platforms — can help integrate IoT feeds, transactional data, and predictive analytics into a coherent, accessible model for decision-makers.
Measure your way to sustained success
In the first year, metrics should be tied directly to the initiative’s goals. For store layout pilots, that may mean uplift in sales per square foot or improved customer flow. For inventory projects, it could be lower holding costs and reduced stock-outs. For customer experience trials, improved satisfaction scores or repeat purchase rates may be the most telling indicators. Baselines should be established before launch, and performance tracked consistently to guide decisions on scaling or refining the approach.
A word of warning: Guard against bias
Because digital twins can shape offers, prices and experiences, they must be used responsibly. Algorithms that limit what a customer sees can unintentionally (or intentionally) steer purchasing behavior in ways that serve the retailer more than the shopper. Transparency is key: customers should know when personalization is occurring, have the option to influence it and be assured that their data is handled ethically. A commitment to fairness and clarity helps protect both trust and long-term value.
Prepare for a lasting advantage
In the coming years, expect retail twins to evolve into hyper-personalized, self-optimizing ecosystems. Merchandising strategies will adjust dynamically based on demand signals, service models will pre-empt issues before they occur and the lines between physical and digital engagement will blur even further. The shift will be from reacting to yesterday’s performance to anticipating and shaping tomorrow’s outcomes.
Go from insight to action with digital twins
Digital twins are not yet commonplace in retail. That makes the opportunity significant. They enable new consumer experiences, reveal insights that traditional analytics cannot and deliver measurable returns. The retailers that act now will set the pace for an industry that is about to change quickly — and decisively.
To learn more, arrange for a demonstration or to enlist our expert assistance in developing a pilot project for your organization, please contact us at Wipro Strategic Partner for Oracle Cloud today.
