The global retail industry is entering a new phase of transformation. Recent research shows that retailers are investing heavily in artificial intelligence (AI), frictionless shopping technologies and retail media networks while also strengthening supply chains and improving customer experiences.
Across markets, business leaders face the same challenge: how to embrace automation and innovation without losing consumer trust.
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The latest retail trends point to an industry that is becoming more data-driven, more personalised and more connected across digital and physical channels.
At the same time, economic uncertainty, changing consumer habits and operational pressures continue to reshape retail strategies worldwide.
AI moves from experimentation to business strategy
Artificial intelligence has become one of the most important investment priorities in retail.
Recent research from KPMG found that AI is now a top investment priority for 64% of consumer and retail chief executives, reflecting a sharp rise in confidence in the technology’s ability to improve efficiency, decision-making and customer engagement.
Many retailers expect measurable returns from AI investments within the next three years.
The focus has moved beyond simple automation. Retailers are increasingly deploying Generative AI to create personalised product recommendations, improve marketing content, optimise inventory management and support customer service operations.
KPMG’s Intelligent Retail research also found that 67% of retailers have already seen efficiency improvements from AI adoption, while more than half report moderate to high returns on investment.
Academic research supports these findings. A large-scale field study of online retail platforms found that Generative AI can increase sales and productivity by improving customer experiences and reducing friction throughout the purchasing process.
The strongest benefits were often seen among smaller sellers and less experienced customers, suggesting that AI can help broaden market participation as well as improve operational performance.
For retailers, the message is clear. AI is no longer viewed as a future technology. It is becoming a core business capability that influences everything from forecasting demand to personalising the shopping journey.
Frictionless shopping and personalisation reshape customer expectations
Consumer expectations continue to evolve rapidly. Research from PwC highlights growing demand for frictionless shopping experiences that reduce waiting times, simplify payments and remove unnecessary steps from the customer journey.
More than half of consumers surveyed said they would be willing to shop in a frictionless store, while many are prepared to pay more for convenience.
This trend is accelerating investment in technologies such as automated checkout systems, self-scanning solutions, computer vision and cashierless retail formats. Retailers are increasingly exploring ways to blend digital convenience with physical shopping environments to create seamless experiences across channels.
At the same time, personalisation remains a major priority. Advances in AI allow retailers to analyse customer behaviour in real time and deliver tailored product recommendations, targeted promotions and more relevant content.
Research across the sector consistently shows that consumers expect retailers to understand their preferences and provide experiences that reflect individual needs.
The growth of retail media networks is also reshaping the customer relationship. Retailers are increasingly monetising their first-party customer data by offering advertising opportunities within their own digital ecosystems.
As privacy regulations evolve and third-party cookies become less important, retail media is emerging as a significant new revenue stream for major retailers.
Together, frictionless shopping, personalisation and retail media are creating a more connected retail environment where customer experience becomes a key competitive advantage.
Resilience, trust and supply chains define long-term success
While technology dominates many industry headlines, recent studies show that resilience remains equally important. Retailers continue to face supply chain disruption, economic volatility and shifting consumer spending patterns. As a result, many organisations are investing in more flexible operating models and improved visibility across their supply networks.
Research into emerging retail trends also highlights the growing importance of omnichannel strategies. Consumers increasingly move between physical stores, websites, mobile apps and social commerce platforms before making purchasing decisions.
Retailers that can deliver a consistent experience across these channels are better positioned to meet changing customer expectations and maintain loyalty.
The UK retail sector provides a useful example of these pressures. According to the UK Parliament’s retail sector briefing, the industry continues to navigate structural change driven by online shopping growth, changing consumer behaviour and economic challenges.
Store closures remain a significant issue, even as online and physical retail models continue to evolve. Retail nevertheless remains one of the UK’s largest sectors, generating £114.7 billion in economic output and supporting 2.6 million jobs in 2024.
Perhaps the most important finding emerging from recent retail research is that technology alone is not enough. Successful retailers are focusing on responsible innovation.
Consumers increasingly expect transparency around data usage, AI-driven recommendations and automated decision-making. Organisations that balance efficiency with trust are likely to gain a lasting competitive advantage.
The latest studies suggest that the future of retail will not be defined by a single technology or business model. Instead, success will depend on combining AI-powered innovation, seamless customer experiences, resilient supply chains and trusted relationships with consumers.
Retailers that can bring these elements together will be best placed to thrive in an increasingly competitive and fast-changing global market.
