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Business Guide
18 Major Retail Industry Trends in 2026: Facts and Stats

Running a Business
Technology Trends

18 Major Retail Industry Trends in 2026: Facts and Stats

Last updated: 24.07.2026

As technology shifts and the digital world continues growing and innovating, retailers must adapt to the new technology trends in retail.

In the following sections, we offer valuable insights for retail brands looking for new opportunities to outperform competitors. We look at the top retail trends, uncovering a number of emerging opportunities to increase sales and attract more consumers.

TABLE OF CONTENTS

1. Omnichannel Retail Engagement

Our list of top retail trends starts with omnichannel – a way to deliver an integrated shopping experience across multiple channels and meet all customer expectations in 2026.

Brands with strong omnichannel engagement retain 89% of customers. Weaker omnichannel strategies retain just 33% of consumers.
73% of consumers use multiple channels during their shopping journey, and they can often use more than six touchpoints before purchasing.
Customers who use multiple channels to shop spend around 4% more in-store and approximately 10% for an order and have a 30% higher lifetime value than single-channel buyers.
Campaigns that use multi-channels can generate a 494% higher order rate than single-channel campaigns, according to some studies.

Omnichannel retail trends can be different based on the type of business you run, your consumers, your products and other factors.

However, some of the most frequently implemented techniques include full integration between online and offline channels, consistent branding and messaging, unified customer data, personalised marketing and promotions, as well as advanced inventory management.

2. Return Process Incentives

Return process incentives represent the motivational components you offer in order to see customers returning to your company after they’ve sent back a product. This approach is an undoubted part of online retail trends and is extremely useful for customer engagement online.

Return process incentives create promising motifs for building brand loyalty by strengthening bonds with existing customers who might otherwise leave your brand.

This strategy works via offers that are specifically created for the individual. It requires analysing various factors to understand the customer’s behaviour and provide an incentive for them to stay with you.

Research indicates that 96% of all shoppers would return to a merchant after a smooth return process, and 76% of first-time shoppers specifically note that a “very easy” return experience guarantees they will buy from that brand again.

The incentives you could offer include discounts or coupons, bonus cash back, free shipping on exchanges or no charge for returns.

3. Frictionless Delivery

Your retail brand priorities should also include frictionless delivery.

As technology paves the way for a substantial change in the retail space, shoppers no longer acknowledge next-day deliveries as a unique selling point.

Instead, if you want to stay ahead, it’s time to consider same-day delivery or frictionless delivery.

The standard mainstream window expected by 82% of UK online rapid grocery shoppers is one to four days (38% expect 1–2 days; 44% expect 3–4 days).
Next-day deliveries are highly sought after for higher-value purchases, with volumes growing steadily.
Same-day deliveries are deemed an expectation by only 4% of shoppers, making it a niche service rather than a mainstream demand.
Most shoppers expect delivery within two days for free or at a very low cost.
The consumer‑stated acceptability threshold for a standard delivery fee is £3.50, yet 77% of retailers currently charge more. Also worth noting is that delivery fee expectations and norms vary widely by category, basket size and service level.
An estimated 40% of UK consumers experience delivery issues or missed parcels, resulting in average costs of £11.60 per failed drop.
Only 14% of shoppers rate eco-friendly delivery as a high priority, though this rises to 22% among Gen Z.
53% of retail leaders cite rising fulfilment and delivery costs as their largest barrier to business growth.

To cater to consumer demand through your deliveries, it’s key to implement strategic integrations between modern technologies and partnerships with logistic companies.

This can help you establish a smooth flow from the point a consumer orders to the point where their product is delivered.

Automation plays a fundamental role in frictionless deliveries. For instance, drone deliveries allow shoppers to order online and receive their products over the next couple of hours. This approach offers exceptional convenience and makes operations easier for your business. However, it will require strong setup and potentially high investment fees to proceed along with strict compliance regulations.

You can eliminate human intervention, cut down delivery times, build your reputation and reduce expenses at the same time. But costs, safety, regulation and geography materially affect feasibility and savings.

4. Private Labels

When it comes to retail market trends, private labels are something not to ignore.

Nearly50% of UK shoppers say they buy premium own label products at least some of the time. Almost one in two have purchased super premium or luxury own label ranges. Also, 30% of consumers now associate higher quality with premium own-label, which is a higher proportion than those who associate quality with brands.

Private labels are among the current trends in the retail industry as they promise higher profit margins, help create brand differentiation and loyalty, contribute to trust among shoppers and have promising pricing potential.

Investing in offering private label products is therefore an important consumer-driven trend worth pursuing.

5. Easier Checkout Process

Studies reveal that a complex checkout process can significantly impact the customer’s desire to complete a purchase. This can potentially have a negative impact on your retail business’ sales volumes and overall profits.

To maintain smooth transactions, 77% of UK retail leaders cite checkout speed as a critical priority, and 46% report that shoppers actively expect flexible or mobile checkout options.

Furthermore, payment frictions and disruptions put approximately £1.7 billion of retail sales at risk annually in the UK.

To prevent this friction, consider offering multiple payment options at your physical checkout. In most cases, this includes contactless payment options, as they’re possibly one of the most convenient and popular ways to pay today.

However, for those who prefer to use other alternatives to debit and credit cards, other retail banking trends can be explored.

These include buy now, pay later (BNPL) options – another essential-to-have checkout solution. Originally gaining popularity online, BNPL is now a huge trend in physical stores, too.

RFID tags are also dominating the scenes, enabling merchandise tracking in order to simplify the checkout process for customers in cases of self-checkout.

This technology works by installing an RFID tag into price tags in the store. As a result, shoppers aren’t required to scan barcodes at checkout. All they have to do is put their products into a bin, allowing a computer to scan each item via its RFID tag.

6. Personalised Experiences

Among other retail customer experience trends, personalisation is taking precedence, with several privacy concerns to keep in mind as a business owner.

Expectations are that hyper-personalised offers will replace store-wide sales events by 2027. And by hyper-personalisation, we don’t just mean special deals and personalised recommendations. We mean, personalised and customised content, pricing and product offers.

Hyper-personalisation represents a completely tailored shopping experience, from start to finish. This requires a complete and in-depth understanding of your customers’ preferences and behaviour.

You can think of personalisation and customisation as a step toward the future. Here, AI will be doing all the shopping on behalf of Gen Zers and Millennials.

7. Subscription-based Services

Subscription-based model services have also become a top retail trend in 2026.

They guarantee regular and consistent revenue streams for retail businesses, help create customer loyalty and are ideal for offering personalisation across different stages of the buyer lifecycle.

38% of the UK population has used a retail subscription box service.
London leads with the highest penetration at 45%, while Northern Ireland has the lowest at 19%.
Average monthly churn for retail and digital subscription businesses sits between 5% and 7%.
Gen Z leads with £305/month, followed by Millennials at £261/month, and Gen X at £91/month.

Based on this approach, retailers that target the right audience and provide regular deliveries for products like groceries, beauty, and household must-haves can succeed.

Other subscription-based services include curated subscription boxes tailored to the tastes and preferences of the shopper. In addition, membership programs are on the rise, offering exclusive benefits and discounts for members.

8. “Quiet luxury”

The luxury market has always been appealing. But today, more and more shoppers are looking for items that show sophistication via design, material, attention to detail and other factors.

In 2026, the UK personal luxury goods market is valued at $27.43 billion and continues to grow at a moderate 3% to 5%.
Clothing and apparel dominates, claiming a 37.43% market share, closely followed by leather goods and accessories.
E-commerce within the UK luxury segment is projecting the fastest retail format growth, with a 5.32% compound annual growth rate (CAGR) from 2026 to 2031.
Rather than loud branding, modern quiet luxury in 2026 focuses on craftsmanship, heritage, and sustainable practices. Consumers heavily favor accessible-to-premium UK heritage brands.

The most interesting part about quiet luxury is that it isn’t directly associated with luxury brands although it is closely associated with them. Instead, it represents a trend where the essence of individual products is valued more than branding.

When it comes to quiet luxury, the structural changes it represents appeal not because of flashy logos. Instead, the appeal is found in craftsmanship, detailed designs, manufacturing principles and more.

It requires companies to establish intimate and custom-based interactions with shoppers. This helps create a feeling of exclusivity, making each purchase feel special and unique. Quiet luxury often overlaps with sustainability and ethical practices, which brings us to the next big retail trend.

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9. Sustainability and Ethical Sourcing

Consumers are becoming more and more conscious of the impact that retail has on the environment. This shift is changing how retailers apply their operational development practices and processes. It is also resulting in a retail industry transformation.

Here’s what’s worth knowing in 2026:

UK consumers are increasingly balancing their ethical priorities with cost-of-living realities. This means that while 88% of shoppers prioritize ethical sourcing, 67% are willing to pay a premium for supply chain transparency.
‘Made in UK’ goods are showing a 28% sales growth, although actual consistent purchasing often hinges on cost rather than ethics alone.
Online sales of Fair Trade certified products have seen a 156% growth.
Additionally, 51% of consumers deliberately buy locally produced goods.

This sets the scene for preferences towards ethical and green-oriented brands that pay close attention to their influence on the planet.

A growing percentage of shoppers are now showing preferences toward companies that demonstrate sustainability in their operations, including supply chain practices, packaging, deliveries, human rights, labour practices and more.

10. Resale Commerce

Resale commerce or “recommerce” is a segment in the retail industry concentrated on the purchasing and selling of pre-owned, used, or second-hand products. With a growing resale market, resale commerce is another retail trend you need to consider in 2026.

The total second-hand market value in the UK exceeds £7 billion in 2026, with apparel and footwear representing the largest revenue-generating segments.
Traditional brick-and-mortar second-hand retailers (including charity shops) are valued at £3.5 billion.
The resale market is projected to grow by 9% annually, taking a much larger share of first-hand retail budgets.

This shift in shopper sentiment is partially a result of the rising interest in sustainability and ethical practices as well as a flight to value approach.

Another possible explanation is that more and more consumers are searching for ways to introduce minimalism into their lives via decluttering. This creates opportunities for reselling items.

11. Social Commerce

Social commerce or creator commerce relies on social media channels to position products and services and sell them to the right audience.

It requires the creation of a seamless shopping experience across social networks, meaning integrations between platforms, user-generated content, influencer marketing, community engagement and others.

Social media platforms that contribute to social commerce trends include Instagram, Facebook, YouTube and X. These platforms have gradually turned into major parts of everyday life for consumers.

Here are a few interesting social commerce stats in the UK worth knowing about:

UK social commerce sales will surpass £11 billion, with double-digit annual growth projected through 2029.
88% of TikTok users discover brands on the platform, and 1 in 3 consumers prefer social networks over traditional channels for product discovery.
Modern zero-friction strategies dominate, with 56% of UK users making direct purchases in-app without ever leaving the social platform. This means catering to new payment methods is a must retailers should consider implementing.
Apparel dominates the market, capturing roughly 28% of all social commerce sales.
Livestream events are generating conversion rates of 9% to 30%, vastly outperforming traditional ecommerce conversions of 2% to 3%.

Businesses that successfully create a smooth shift from product discovery to purchase on social media platforms can substantially stand out from the crowd. Additionally, these platforms offer strong data insights and digitalisation, which can improve a retailer’s customer engagement strategies.

12. Mobile Commerce

On the other hand, mobile commerce, also referred to as m-commerce, relies on mobile devices like smartphones and tablets which consumers use to make purchases.

In today’s retail realm, more and more shoppers are taking advantage of the convenience of mobile devices for shopping. Whether it’s browsing for products, shopping online, banking or paying bills, these devices are a vital part of our daily routine.

Over 91% of UK adults own a smartphone, and 76% have made a purchase on their mobile device in the past six months.
In terms of market share, smartphones capture over 54% of all B2C e-commerce value.
UK social commerce revenue hit £11.75 billion, with TikTok emerging as the dominant driver, securing 44% of on-platform purchases.

Retailers are recognising the potential of this avenue. It calls for innovation around mobile-optimised websites, mobile apps dedicated to online shopping, mobile payments, and more.

13. Voice Commerce

Although social and mobile commerce are big in retail in 2026, so is voice commerce.

Smart speakers are present in nearly two-fifths of UK homes.
12% of the UK populace now uses their AI assistant (e.g., Alexa or Google Assistant) to shop, a figure climbing steadily alongside broader mobile commerce.
Consumers gravitate toward voice technology for its convenience, accessibility and hands-free multitasking capabilities.

Virtual assistants and smart speakers are pushing towards this growing trend, where voice-activated technologies are completely changing the way shoppers communicate with brands.

Voice commerce helps consumers enjoy a hands-free experience that is not only convenient but also personalised and incredibly easy. For example, buyers can search for products, receive product recommendations, and complete purchases simply by relying on voice commands.

Google Assistant’s Voice-Driven Product Search also enables individuals to take advantage of voice-activated product search – another factor contributing to the rise of voice commerce.

14. AR and VR in Retail

Virtual Reality (VR) and Augmented Reality (AR) are expected to be the next big trends in the retail landscape, and we’re already witnessing their potential in 2026 in enhancing the digital customer journey.

Virtual reality in retail and augmented reality applications are creating a new type of shopping experience where items can be previewed and experienced before purchase. These give consumers a much more enhanced experience when shopping, backed by stats that indicate the following:

The global AR/VR retail market is projected to reach US$7.92 billion in 2026.
Fuelled by mobile AR integration, 72% of luxury fashion shoppers in the UK now expect augmented reality to be incorporated into their buying experience.
AR adoption can drive e-commerce conversion rates up by up to 94% across participating retailers.

Particularly attractive to younger shoppers, AR and VR are actively being used to design immersive and functional methods to position products and services in front of potential buyers.

These technologies help create the foundations of experiential retail and are perfect for informing customers about the value of your offers and your brand in general, as well as demonstrating how your products can be useful for them.

The beauty of AR and VR is that they can help shoppers interact with your products in unimaginable ways.

15. Phygital retail

Based on research, most shoppers review products online before making a purchase. The review process can take place across different social media platforms, search engines or the brand’s website.

These figures clearly demonstrate how important it is for companies to take advantage of phygital retail as a way to grow their business to new heights.

Phygital retail or hybrid shopping is gaining traction putting it on the list of the latest trends in retail. Its popularity is mainly due to the distinctions between younger generations and older generations, or Gen Z and Boomers.

For example, a major part of Boomers’ shopping preferences are centred around classic in-store experiences. On the other hand, Gen Z shoppers represent the digital natives that seek the convenience of online shopping.

To find the perfect balance, retailers are gradually starting to take advantage of phygital retail – a merger between physical and digital channels.

Digital commerce accounts for around 28.8% of UK retail sales, meaning over 71% of retail spending involves a physical store at some point in the customer journey.
Consumers utilising more than six touchpoints spend 16% more per order and yield a 30% higher lifetime value than single-channel buyers.
Brands with strong strategies retain 89% of their customers.
Retailers deploying AR visualizations report conversion rates improving by up to 94%.
Livestream and influencer-led shopping events are driving conversion rates of 10% to 30%, vastly outperforming traditional e-commerce averages of 1% to 3%.
Up to 95.4% of B2C marketers now deploy AI in their omnichannel strategy, utilising tech like intelligent dressing rooms and endless-aisle tablets to enhance the physical store experience.

This approach enables businesses to use advanced systems to manage inventory, customer relationship management, and even retail supply chains. Think of enabling shoppers to search for products online, then moving to a physical store to receive personalised recommendations thanks to advanced customer data collection and analysis.

16. Artificial Intelligence (AI) and Machine Learning (ML)

AI-driven automation and machine learning (ML) are other retail trends that shouldn’t be neglected in 2026. That’s because the artificial intelligence impact on retail is immense.

In 2026, AI and ML are deeply embedded in UK retail. Approximately 12% to 15% of UK retail businesses actively use or pilot AI tools. However, among larger enterprises with more than 250 employees, adoption soars to 45%.

Brands are actively embracing the power of AI to personalise the shopping experience more than ever. This is possible thanks to machine learning algorithms that are capable of processing and analysing large volumes of customer data across different channels, including eCommerce sites, social media platforms, and multiple marketing channels.

This helps retail companies get to know their consumers better, allowing room for predictions and recommendations based on personal preferences.

17. Security and Data Privacy

The incredible volumes of digital transactions taking place in the retail space are naturally appealing to fraudsters and hackers interested in consumer-sensitive data.

As a result, security and data privacy are on the rise as one of the top retail trends in 2026.

A staggering 43% of all UK businesses report a cyber breach or attack. Meanwhile, 52% of Britons claim that controlling access to their personal data is very important.

As such, businesses must provide customers with peace of mind knowing that their information is fully protected at all times, preventing risks of data theft and unauthorised payments.

18. Blockchain Technology

Although still in an early developmental phase, blockchain technology and specifically, blockchain technology in retail, offers promising potential for multiple industries, retail included.

The overall UK blockchain market is valued at over $2 billion, with the retail and e-commerce sector growing at an accelerated CAGR of over 70%.

Retail brands are starting to test different strategies on the basis of blockchain technology, mostly due to its powerful security features and decentralised nature.

For instance, some of the areas where experiments are performed include traceability, payment streamlining, smart contracts, authenticating products, as well as supply chain transparency.

Exceeding Expectations Through Technology and Innovation

By exploring and evaluating the top retail trends in 2026, one thing becomes clear – technology and innovation are vital for meeting consumer expectations.

The future of retail is expected to welcome new and more advanced solutions created as a result of the evolution of technology.

With shoppers actively searching for convenience and speed in their shopping, retail brands must quickly adapt and provide a seamless journey across all used channels.

Frequently Asked Questions

What is driving omnichannel retailing as a top trend in 2026?

Customers are increasingly demanding integrated shopping experiences, calling for an omnichannel approach to retailing. Shoppers expect to quickly and effortlessly move across offline and online channels without losing data or disrupting their shopping journey.

How are retailers utilising AI to improve customer experience?

Retailers are actively experimenting with AI-powered recommendations, chatbots and virtual assistants, inventory optimization and management, pricing, and more.

How is AR changing the way we think about retail?

Augmented reality is reshaping the retail experience by offering immersive and interactive ways to communicate with brands and experience products. For instance, consumers can visualise how clothes will look on them, how furniture will fit into their homes, and more without physical contact with the product.

Sources

Author

Desi Tzoneva