Retailers enter 2026 facing a landscape shaped by rapid technological change, evolving consumer expectations, workforce pressures, and ongoing economic uncertainty. Industry experts note that success will depend less on doing everything and more on clearly understanding core customers and delivering experiences that reflect their priorities.
Artificial intelligence is expected to play a central role in the year ahead. Investments continue to grow as retailers use AI to improve forecasting, personalize customer interactions, manage inventory, and strengthen supply chains. Rather than experimentation, AI is increasingly viewed as an essential infrastructure, with a focus on practical applications that support efficiency, margins, and customer trust.
Large-scale retailers continue to raise competitive expectations. Walmart’s expansion of digital tools, store modernization, and same-day fulfillment illustrates how integrated physical and digital strategies are becoming the norm across the industry.
Physical retail spaces are also evolving. Shopping malls are seeing renewed interest as destinations for entertainment, dining, and social connection, reflecting consumer demand for experiences that go beyond transactions. Experiential concepts and pop-ups help drive foot traffic and engagement.
Shifts in health and wellness are influencing purchasing behavior. The growing use of GLP-1 weight loss medications is affecting apparel sizing, resale activity, and food consumption, prompting retailers and brands to adjust assortments and product development.
Generational change remains a defining factor. Gen Z and Gen Alpha are reshaping expectations around authenticity, technology, flexibility, and values, while also driving changes in social media use and brand engagement.
Looking ahead, retailers are likely to see continued leadership turnover, increased focus on data-driven marketing, and greater reliance on technology to connect with consumers across channels. Adaptability and clarity of purpose will be critical as the industry navigates another year of transition.
