The past 12-months have been transformative and challenging for the retail sector, with retailers experimenting with new technologies and strategies whilst grappling with the heightened threat of cyberattacks and rising retail crime.

In 2025, brands turned to electronic shelf labels, experimented further with AI technology and boosted customer engagement with loyalty offers and personalisation. Meanwhile, retailers such as Marks & Spencer dealt with major cybersecurity issues, resulting in supply chain disruption and a temporary halt to online shopping.

To mark the end of the year, the editorial team at Retail Systems has rounded up a host of industry experts to tell us their top retail predictions for 2026.


1. Agentic commerce takes centre stage

Almost all of the experts we spoke to said that AI will continue to dominate the market and drive further shifts in how shoppers engage with retailers in 2026.
One of the most disruptive shifts predicted for next year is the rise of agentic commerce, where AI assistants shop, make decisions, and transact on behalf of consumers.

Rosemary DeAragon, global head of retail and travel at software firm Snowflake, says that AI agents will already have “intimate” knowledge of consumers, such as their contacts, calendar, location and browsing history to automatically suggest products.

“Imagine an agent that knows you're attending a first birthday party next month and automatically suggests and purchases the perfect gift based on your relationships and shopping patterns,” she adds. “The stakes are enormous: consumers who trust an AI agent with their shopping preferences will concentrate spending with retailers that seamlessly connect to their personal AI ecosystem, which in turn creates unprecedented customer lock-in and lifetime value capture.”

Pete Wickes, general manager EMEA at payments company Worldpay, says that by 2030 UK consumers expect around seven per cent of their total online purchases
to be made via an AI agent, which will equate to around £29 billion of online spending. In 2026, he says retailers need to focus on how they adapt to this emerging way of shopping.

Suzin Wold, chief marketing officer at e-commerce platform Rithum, says that agentic commerce will reshape the industry next year in ways that most would not anticipate.

“If your products aren’t easy for AI agents to find and buy, you’ll lose share to competitors,” she says. “Leading retailers will hand pricing, promotions, and storefronts to autonomous merchant systems, optimising sales and CX faster and pulling ahead.”

Wold adds: “Platforms like TikTok Shop have already caused checkout to collapse into content. By 2026, if retailers don’t make shopping seamless within content, customers will lose interest and turn to competitors.”

2. The evolving role of retail media

The role of media in the industry is shifting from simple sponsored product placement towards a new ecosystem that integrates data, pricing and personalisation.

Regina Ye, chief executive and co-founder of retail media technology firm Topsort, says retailers are moving beyond simply selling ad space. She cited a report from the World Advertising Research Center (WARC) which found that spending on retail media will surge to over $200 billion in 2026.

“You can also expect dynamic, shoppable video, in-app commerce, and AI-generated creative to redefine engagement,” she adds. “Retailers will experiment with multimodal formats across connected TV, chatbots, and voice assistants to meet consumers where discovery happens.”

Sam Jayes, head of client services at data consultancy Sagacity, says retail media networks are now a priority at board level.

“In 2026, retailers will accelerate their transformation into media businesses,” he says. “Retail media networks will sit alongside traditional sales as a high-margin income stream, using first-party data and insight to boost the bottom line.”

This shift also extends how media is planned and measured, according to Jordan Boyne, SEO director at search media firm Brandwidth. He says that rather than running isolated campaigns, retailers are building joined-up ecosystems that connect data, targeting and performance across channels.

“Retail search will feel less like hunting through links and more like asking a knowledgeable assistant for advice,” he added. “AI systems will synthesise reviews, product information and local stock levels to deliver a single, confident recommendation rather than a list of options.”

Florimond de Tinguy, VP of sales for EMEA at commerce platform VTEX, said that AI will optimise formats, adjust placements, and personalise messaging for every shopper based on their journey stage, intent, and historical behaviour.

“This results in a new kind of retail media ecosystem: autonomous, predictive, and seamlessly integrated into the commerce flow,” he added. “Retailers will monetise not just their digital shelf but also their data, insights, and AI-driven customer understanding.”

3. Problems for hyper-personalisation

As retailers fight for market share, many of them have tried to tempt customers with hyper-personalised offers using data generated from social media campaigns and marketing emails.

Some experts warn that this trend could run into difficulties next year.
Tal Lev-Ami, chief technology officer at cloud platform Cloudinary, says that hyper-personalisation is something brands have been trying to figure out for a very long time.

He believes the main difficulties lie with human behaviour rather than technology.

“With hyper-personalisation, you’re creating an experience on the fly, without anyone having reviewed it in advance, that the receiver is experiencing for the first time,” he says. “That’s a risk, and marketers will still struggle with that.”

He continues: “I predict in 2026 we’ll start seeing early iterations of real hyper-personalisation, but not the full vision yet. For now, we can expect to see people doing the kind of dynamic personalisation we do today with text, but with images - what we might see first are the next generation of ‘put your logo on a t-shirt’ kind of personalisation, rather than fully different experiences
for different people.

“That’s a much more complex challenge, and I don’t think we’re ready for it yet – not just in terms of AI, but also in terms of defining what counts as a good or acceptable experience specification.”

Christine Bourdon, managing director at Danish design firm Designit, said that after years of hyper personalising everything, customers are getting overstimulated, overwhelmed and tired of experiences that feel more demanding than helpful.

Burdon said this tiredness is more pronounced among neurodivergent users, who often experience personalised systems as inconsistent, noisy, and unnecessarily complex.

“The shift ahead is clear: accessibility becomes more valuable than personalisation,” she says. “Instead of designing for the idealised user journey, retailers will focus on creating experiences that are immediately understandable, low in cognitive load, and dependable for everyone.”

4. Loyalty gets a rethink

Retailers are beginning to recognise growing consumer fatigue with points and perpetual discounts.

Sam Jayes, head of client services at consulting firm Sagacity said many shoppers now see loyalty schemes as a requirement rather than a reward.

“In 2026, retailers will rethink loyalty as something that feels like a privilege rather than a price cut,” she says. “Instead of blanket discounts, they will focus on experiences that make customers feel understood and appreciated.”

She adds that AI-powered loyalty platforms are enabling more personalised and experiential rewards, from early access to products to invitations to exclusive events.

Attila Kecsmar, chief executive of loyalty technology firm Antavo, said loyalty will increasingly integrate into everyday life.

“Customers expect seamless engagement and meaningful interactions,” he says. “People come for the discounts but stay for the experience.”

This shift is also closely tied to brand values, particularly among younger consumers who expect loyalty programmes to reflect sustainability, inclusion and authenticity.

Charlie Casey, chief executive of data platform LoyaltyLion, said that customer experience in 2026 will be defined by empathy, trust and participation

“For too long big loyalty programs have really been discount clubs or pricing strategies, but we’re seeing them evolve into participation platforms, where members don’t just earn points but unlock exclusive experiences like early access to new product drops, event invitations and priority service,” he added. “They are also getting the opportunity more and more to shape the experience itself, doing so through feedback, communities and co-created rewards that speak to their values.

“The boundaries between loyalty, customer care and brand purpose will blur, as shoppers choose brands that reflect their values and listen when things go wrong.

5. Physical retail demands attention

In an increasingly digital world, physical retail will need to justify its role more clearly in 2026.

Candice Mayer-Gillet, managing director at shopping centre owner Westfield Rise, says attention has become a form of currency.

“In physical environments, attention is earned through meaning rather than noise,” she says. “The most effective campaigns at Westfield London and Westfield Stratford City are those that create moments worth stopping for, rather than just showcasing a branded display.”

She adds that shopping centres are returning to their role as “cultural stages” where people expect discovery, entertainment and connection.

More digital-first brands are now using physical spaces to bring their worlds to life in ways people can touch and take part in. Mayer-Gillet says that these are now supported by richer measurement tools, which allow landlords and retailers
to understand how people move and engage.

Andrius Palionis, VP enterprise at data firm Oxylabs, believes that the relationship between brick and mortar stores and their online equivalent is complex, with the line quickly blurring.

"The traditional image of Black Friday with crowds pressing against storefront windows and shoppers camping overnight for doorbuster deals is one of the past – today's reality is far more complex and, paradoxically, more favourable to brick and mortar retailers than might be assumed,” he adds. “By harnessing the same web data that makes e-commerce so powerful, and combining it with physical presence, retailers are able to stand out and successfully compete with online platforms.

He points out that having the ability to adapt will be critical in 2026, as many shoppers now use their mobile devices in store to make price comparisons.

6. Sustainability and traceability pressures build

Sustainability will become a big topic in 2026 as regulatory pressure intensifies across the UK and Europe.

Gillian Garside-Wright, director of consulting at packing firm Aura, said extended producer responsibility reporting will have significant financial implications.

Although larger producers had their first reporting deadline in October, April 2026 will be the first deadline for smaller producers as well another six-month milestone for bigger players.

“That means fees that retailers will want to mitigate, and gargantuan fines for non-compliance - in some cases, those penalty fines could be up to a staggering five per cent of annual turnover, which for a big global retailer could be millions of pounds,” she says. “The coming 12 months will see the ripples of that deadline continuing to impact retailers globally.”

She adds that rules in the US could be “devastating” for retailers who do not meet requirements.

“They will find themselves potentially facing significant fees as well as significant fines for non-compliance of up to $50,000 per day,” Garside-Wright added.

Increasing scrutiny means brands can no longer outsource accountability to tiers of suppliers.

Todd Redwood, global managing director for consumer, retail and food at professional services organisation BSI says that brands are increasingly accountable for their entire supply chain as regulators demand greater transparency.

“In luxury retail, for example, we’ve seen Italian courts use a measure called judicial administration to oversee brands found to be complicit in labour exploitation,” he adds. “We’re likely to see that evolve into other countries and other sectors in the coming year, as it becomes abundantly apparent that ignorance regarding ESG compliance is no defence.

He continues: “Quite simply, the brand is responsible for its suppliers, whether they are tier one or tier four. As part of this, in 2026 we will see a growing emphasis on digital traceability tools.”

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