Retail trends in 2026 are being set by a series of structural shifts that accelerated during 2025, as retailers responded to economic pressure, changing consumer behaviour and rapid advances in technology.
Industry reports from consultancies, data firms and retail analysts point to a sector moving away from short-term experimentation towards longer-term operational change.
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For international retailers, brands and suppliers, the events of 2025 now provide a clear framework for what will matter most in the year ahead.
At the centre of these changes are artificial intelligence in retail, the evolution of omnichannel retail strategies and the renewed importance of physical stores, all taking place against a backdrop of cautious consumer spending and tighter margins.
AI in retail moves from trial to core infrastructure
The adoption of artificial intelligence in retail accelerated sharply in 2025, with many large retailers moving beyond pilot projects.
AI was increasingly used for demand forecasting, inventory management, personalised recommendations and automated customer service. What changed during the year was the scale and permanence of these systems.
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By GlobalDataIndustry analysts expect AI tools to become embedded in everyday retail operations in 2026. AI-powered shopping assistants, dynamic pricing engines and predictive supply chain systems are forecast to influence how consumers discover products and how retailers control costs.
This shift reflects pressure on margins, as labour, logistics and returns costs remain high in many markets.
Data governance and ethical use of AI are also gaining attention. Regulators in Europe, North America and parts of Asia have signalled tighter oversight of automated decision-making.
As a result, transparency around customer data and algorithmic processes is emerging as a competitive issue rather than a compliance afterthought. For B2B suppliers, this raises expectations around data quality, system integration and auditability.
Omnichannel retail becomes a baseline expectation
Omnichannel retail was no longer viewed as a differentiator in 2025. Instead, it became a basic requirement for staying relevant.
Consumers increasingly expect a single experience across online retail platforms, mobile apps and physical stores, including consistent pricing, real-time stock visibility and flexible fulfilment options.
During 2025, retailers invested in deeper channel integration rather than surface-level links. This included click-and-collect services tied directly to store inventory, mobile checkout systems inside stores, and digital tools that support in-store staff.
Industry forecasts suggest that in 2026, the gap between retailers with mature omnichannel capabilities and those without will widen further.
Younger consumers, in particular, are driving this shift. Research into consumer behaviour shows that convenience and speed now outweigh brand loyalty for many shoppers.
Retailers that fail to align digital and physical channels risk losing relevance, especially in competitive urban markets. For technology vendors and logistics partners, this increases demand for interoperable systems and faster deployment cycles.
Physical stores regain strategic importance
After years of online-first strategies, 2025 marked a renewed focus on physical retail investment.
Retailers across the UK, Europe and parts of Asia increased spending on stores, especially in high-footfall locations and mixed-use developments. This was not a return to traditional store formats, but a redefinition of their role.
Physical stores are increasingly positioned as experience centres, fulfilment hubs and brand touchpoints rather than purely transactional spaces. In-store events, product demonstrations and services such as repairs or returns are being used to support broader omnichannel retail strategies.
Analysts expect this trend to strengthen in 2026 as retailers seek to balance digital efficiency with customer engagement.
Property data indicates that retail real estate investment is stabilising after years of decline. This reflects consumer demand for social and sensory shopping experiences that online channels cannot fully replicate.
For suppliers, this shift affects store design, staffing models and last-mile logistics, particularly as stores take on a dual role as sales and distribution points.
Consumer behaviour and profitability pressures shape decisions
Underlying these structural changes is a more cautious global consumer. Economic uncertainty, inflation and cost-of-living pressures influenced spending patterns throughout 2025.
Data from retail analytics firms shows consumers prioritising essentials and planned purchases over impulse buying, especially during major sales periods.
This has direct implications for profitability. Many retailers tightened return policies in 2025 to manage costs, reversing a decade of increasingly generous terms.
In 2026, stricter returns management is expected to continue, supported by better sizing tools, clearer product information and in-store return options.
Specialty retailers face particular pressure. Uneven footfall and high operating costs have increased financial stress in certain categories, with analysts warning of a higher risk of restructurings and store closures in 2026.
Survival is likely to depend on clear differentiation, efficient omnichannel execution and disciplined cost control.
Sustainability also remains a factor in purchasing decisions, especially among younger consumers. Circular retail models such as resale, repair and rental moved closer to the mainstream in 2025.
While not yet dominant revenue drivers, they are expected to play a larger role in brand perception and customer loyalty in the coming year.
Taken together, these developments show that retail trends in 2026 are less about novelty and more about execution. The shifts seen in 2025 point to an industry focused on resilience, efficiency and relevance in a slower-growth environment.
For international industry players, understanding these dynamics will be critical to navigating the next phase of global retail change.
