06 Jun 2025
by Adam Railton

Digital Identity: Retail’s Next Competitive Edge

techUK is delighted to host this guest insight by Condatis


In a recent presentation at techUK’s Industry Insight: Retail in 2025 session, Condatis explored the art of the possible through the lens of digital identity-and the message was clear: the technology to transform retail already exists. What’s needed now is a shift in mindset.

At Condatis, we’re a digital identity consultancy based in Edinburgh. We help organisations of all sizes build secure, scalable, and future-ready identity solutions. In this blog, I want to share why digital identity is no longer a backend function, but a strategic enabler for retail success.

From Insight to Action

According to Gartner’s Top Retail Trends for CIOs, retail success still revolves around familiar goals: seamless experiences, customer loyalty, operational efficiency. What’s changed is how retailers are investing to achieve these outcomes. Technologies like AI are booming-but without a trusted identity layer, these investments can’t deliver their full value.

Take personalisation, for example. AI can’t personalise effectively without knowing who the customer is. That’s where digital identity comes in-it’s the glue that binds data, tools, and customer expectations into a cohesive, scalable solution.

The Data Dilemma

Retailers are sitting on mountains of data, but much of it is siloed in legacy systems. This not only limits insight but increases risk. Microsoft highlight Identity-related breaches account for 70% of cyberattacks. As the saying goes, “Attackers aren’t breaking in-they’re logging in.”

Meanwhile, customers don’t think in channels-they just expect things to work. And with privacy regulations evolving and consumer expectations rising, traditional identity systems are struggling to keep up.

Enter Decentralised Identity

The future lies in digital identities that customers own and control-also known as decentralised identity. This model gives individuals custody over their own data and the freedom to share it selectively. For retailers, it means:

  • Moving from storing sensitive data to joining a secure, trust-based identity ecosystem
  • Unlocking new experiences like one-tap loyalty sign-ups, hyper-personalised journeys, and seamless returns
  • Shifting identity from a barrier to a true value driver

Digital identity doesn’t just make life easier for customers-it empowers frontline employees too.

Empowering the Frontline

Today’s retail workforce is agile and mobile. Staff need to onboard quickly, move across roles and locations, and stay secure throughout. Digital identity enables:

  • Rapid onboarding/offboarding - perfect for peak seasons like Christmas
  • Mobility - credentials that travel with employees across stores
  • Biometric sign-ins - faster, more secure access to shared systems

This is how retailers build responsive, connected, and secure teams ready to adapt in real time.

The Road Ahead

The momentum behind digital identity is growing. The UK will soon launch mobile driving licences (mDLs), enabling people to prove their age and driving status via smartphone. In the EU, digital product passports (DPPs) will become mandatory by 2030, further embedding identity into product transparency. And by then, Gartner predicts over 40% of identity verification will be decentralised.

Final Thoughts

To wrap up, here are five strategic areas for retailers to consider:

  1. Frictionless experiences - seamless login, checkout, and loyalty
  2. Hyper-personalisation - offers and content based on identity insights
  3. Channel-less retail - one identity across digital and physical channels
  4. Trust by design - privacy, consent, and security baked in
  5. Future-ready mindset - the tools are here; change starts with mindset

Digital identity is more than a technology decision-it’s a business strategy. The regulators are acting, the tools are mature, and your customers are ready. The question is: Are you?


Adam Railton

Adam Railton

Identity & Access Management Lead, Condatis

Adam Railton is Condatis’ Identity & Access Management Lead for the Retail sector, bringing more than two decades of sales, account management, and advisory expertise to the stage.

 

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Authors

Adam Railton

Identity & Access Management Lead , Condatis

Adam Railton is Condatis’ Identity & Access Management Lead for the Retail sector, bringing more than two decades of sales, account management, and advisory expertise to the stage. Focusing exclusively on IAM and decentralized identity solutions, he helps global retailers navigate complex security challenges while elevating customer and workforce experiences through innovative technologies. Adam partners with clients to design and implement bespoke identity strategies that streamline operations, optimise costs, and futureproof organisations. For the past 11 years, he has focused on localisation, payment technologies and customer experience platforms providing him a holistic view of the entire retail landscape.