Generative AI is poised to revolutionize the retail industry, offering transformative potential to enhance customer experiences and operational efficiencies. Despite immense benefits -- such as personalized search, shopping assistance, product content enrichment, and dynamic recommendations -- the industry faces challenges distinguishing genuine value from overhyped applications. According to McKinsey & Company, Generative AI could unlock $240 billion to $390 billion in economic value for retailers, potentially increasing margins by up to 1.9 percentage points [1]. This paper navigates the delicate balance between the hype and the tangible promise of Generative AI in retail. We explore practical applications that deliver real value, critically examine overhyped use cases, and share strategies for successful AI integration. Readers will gain insights into effectively leveraging Generative AI while avoiding common pitfalls.