Explore the Top 10 Retail Trends to Watch in 2026 and Beyond

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Executive Summary: What are the Top 10 Retail Trends in 2026 & Beyond?

1. Sustainable & Ethical Retail: Sustainable and ethical retail expands as the sustainable materials market grows toward USD 1.07 trillion by 2034 at a 12.41% CAGR. Retailers improve circular models as products marketed as sustainable grow 2.7 times faster.
2. Hyper-Personalization & Customization: Hyper-personalization strengthens revenue generation, as 80% of consumers prefer personalized shopping. Also, retailers earn 40% more revenue from personalization than average players.
3. AI-Powered Retail Operations: AI-powered retail operations grow rapidly as the global AI in the retail market heads toward USD 164.74 billion by 2030 at a 32% CAGR. Retailers increase efficiency as analytics-driven personalization lifts revenue by 18%.
4. Supply Chain Digitalization & Optimization: Supply chain digitalization improves with global online grocery sales expected to reach USD 3.61 trillion by 2033. McKinsey reports 20% higher consumer-promise fulfillment, and digital twins reduce labor expenses by 10%.
5. Next-Gen Payment Methods: Next-gen payments reshape checkout as digital wallets rise toward 52% and 39% by 2026. Real-time payments expand as RTP systems move toward 27.8% of global electronic payments. And buy now, pay later (BNPL) volume heads to USD 450 billion by 2026.
6. In-Store Innovations: It is scaling as the global retail automation market moves toward USD 60.87 billion by 2032 at a 9.7% CAGR. Retailers increase engagement with technologies such as radio-frequency identification (RFID) checkout tables that enable sub-one-minute payments.
7. Social Commerce & Livestream Shopping: Social commerce accelerates as global livestream e-commerce grows from USD 19.86 billion in 2025 to USD 258.76 billion by 2034 at a 33.01% CAGR. Conversion rises as livestream shopping achieves 10-30% conversion compared to 1-3% in traditional e-commerce. And Gen Z is 1.6-1.7 times more likely to buy through streams.
8. Phygital Retail Experiences: Phygital retail strengthens omnichannel behavior as 73% of shoppers move across channels before purchasing. Also, 91.75% of Gen Z shows interest in augmented reality (AR) driven shopping. Retailers increase engagement as 3D/AR content improves conversion by 94%.
9. Same-Day & Instant Delivery Ecosystems: Retailers gain competitiveness as the global same-day delivery market heads toward USD 331.04 billion by 2032 at a 41.7% CAGR.
10. Retailtainment (Retail + Entertainment): Retailtainment grows as the pop-up retail market expands from USD 95 billion in 2025 to USD 144.3 billion by 2032. Also, the immersive entertainment market moves toward USD 442.1 billion by 2030 at a 26.3% CAGR.

Read on to explore each trend in depth – uncover key drivers, current market stats, cutting-edge innovations, and leading retail innovators shaping the future.

Frequently Asked Questions

1. How is technology improving the retail industry?

AI solutions, IoT systems, computer vision, and data analytics modernize retail operations by enabling real-time visibility, personalized experiences, and automated decision-making.

2. What is the scope of emerging retail trends?

Emerging retail industry trends span sustainable and ethical retail, hyper-personalization, AI-powered operations, supply chain digitalization, next-gen payments, social commerce, and phygital experiences. These retail technology trends reshape global commerce through immersive shopping, data-driven operations, and faster fulfillment ecosystems.

3. How big will the retail market be?

The global retail market is predicted to grow to around USD 56.4 trillion by 2032, with a CAGR of roughly 6.5% between 2024 and 2032.

Methodology: How We Created the Retail Trend Report

For our trend reports, we leverage our proprietary StartUs Insights Discovery Platform, covering 9M+ global startups, 20K technologies & trends, plus 150M+ patents, news articles, and market reports.

Creating a report involves approximately 40 hours of analysis. We evaluate our own startup data and complement these insights with external research, including industry reports, news articles, and market analyses. This process enables us to identify the most impactful and innovative trends in the retail industry.

For each trend, we select two exemplary startups that meet the following criteria:

• Relevance: Their product, technology, or solution aligns with the trend.
• Founding Year: Established between 2020 and 2025.
• Company Size: A maximum of 200 employees.
• Location: Specific geographic considerations.

This approach ensures our reports provide reliable, actionable insights into the retail innovation ecosystem while highlighting startups driving technological advancements in the industry.

Innovation Map outlines the Top 10 Retail Trends & 20 Promising Startups

For this in-depth research on the Top Retail Trends & Startups, we analyzed a sample of 23 500+ global startups & scaleups. The Retail Innovation Map created from this data-driven research helps you improve strategic decision-making by giving you a comprehensive overview of the retail industry trends & startups that impact your company.

Tree Map reveals the Impact of the Top 10 Retail Trends

The retail trends in 2026 highlight a shift toward experiential commerce, data-driven operations, and sustainability-focused value chains.

Sustainable and ethical retail reduces environmental impact, and hyper-personalization elevates shopper engagement across physical and digital touchpoints. At the same time, AI-powered retail operations streamline forecasting and decision-making, and the digitalization of the retail supply chain enhances fulfillment accuracy across omnichannel networks.

In-store automation, next-gen payments, and phygital experiences lower operational friction to scale immersive environments and align journeys across channels. Likewise, social commerce and livestream shopping accelerate real-time product discovery and conversion as platforms merge entertainment with shopping.

Also, same-day delivery ecosystems and retailtainment formats further address speed expectations, expand experiential touchpoints, and reduce barriers between browsing and purchase.

Global Startup Heat Map covers 23 500+ Retail Startups & Scaleups

The Global Startup Heat Map showcases the distribution of 23 500+ exemplary startups and scaleups analyzed using the StartUs Insights Discovery Platform. It highlights high startup activity in Western Europe and the United States, followed by India. From these, 20 promising startups are featured below, selected based on factors like founding year, location, and funding.

Want to Explore Retail Innovations & Trends?

Top 10 Emerging Retail Trends [2026 and Beyond]

1. Sustainable & Ethical Retail: Products Marketed as Sustainable grow 2.7X Faster

Sustainable and ethical retail reflects a global shift toward responsible production, transparent sourcing, and reduced environmental impact. The sustainable materials market is projected to reach USD 1.07 trillion by 2034, growing at a 12.41% CAGR from 2025-2034.

This expansion is driven by rising climate awareness, stricter regulations, stronger consumer values, and increased demand for ethical supply chains. Global supply chains are responsible for up to 60% of total retail emissions.

Sustainable retail models reduce emissions through ethical sourcing, circular systems, and energy-efficient operations. In this context, the EU Corporate Sustainability Due Diligence Directive (CSRD) and the US SEC climate disclosure rules enforce standardized climate reporting, risk assessments, and transparent value-chain disclosures across retail operations. According to India’s EPR portal for plastic packaging, the framework mandates industry-wide adoption through mandatory reporting and compliance standards.

Sustainable retail increases customer loyalty, as products marketed as sustainable grow 2.7 times faster than conventional goods. For example, IKEA’s buy-back program expanded to 27 countries and enabled customers to return furniture for resale instead of disposal.

Likewise, Patagonia’s Worn Wear initiative extended product lifecycles by repairing 100 000+ items annually. The company is committed to eliminating per- and polyfluoroalkyl substances (PFAS) from all new styles by 2025.

Circular retail models represent another area of high impact. The global secondhand apparel market is set to reach USD 350 billion by 2027. This market growth is driven by recommerce platforms, rental models, and refurbishment programs. For instance, H&M collected 29 005 tonnes of textiles through its global take-back system with I:CO.

Moreover, renewable energy integration improves retail operations. Amazon achieved 100% renewable electricity matching in 2024. This integration led to a reduction in operational footprint and scaling solar investments across warehouses and logistics hubs.

Blockchain-enabled traceability verifies sourcing and prevents greenwashing. For example, Everledger deployed blockchain tracking for ethical supply chains for tamper-proof material verification.

Further, AR-powered virtual try-ons reduce returns and carbon emissions. IoT energy systems also improve retail efficiency by tracking cold-chain integrity and monitoring store-level consumption.

Impulso enables Real-time Sustainable Retail Supply Chain Visibility

Swedish startup Impulso enables real-time data exchange across fashion brands, agencies, and retailers to support sustainable and ethical retail operations.

Its Product Tracker captures in-season sales and inventory activity and structures the information. The tracker also shares information across connected partners to guide precise restocking and redistribution that prevents excess production and unnecessary waste.

Its Auto Payment system automates invoicing and consignment transactions to streamline financial interactions. The system lowers administrative impact and verifies these processes under the Swedish Financial Supervisory Authority to maintain transparent and responsible settlements.

The Auto Payment system provides retailers with direct access to supplier collections and gives suppliers continuous insight into product performance.

Inoqo provides Food Retail Sustainability & Impact Assessment

Austrian startup inoqo offers a SaaS platform that evaluates the environmental and social impact of food and beverage products.

The product impact assessment platform aggregates public and proprietary data into an AI-driven algorithm. It then measures product impacts across ingredients, farming methods, processing, transport, storage, and retail stages.

Moreover, the category assessment tool benchmarks private-label and third-party products to establish accurate impact baselines for sustainability reporting.

The protein transition insights solution then analyzes assortment composition to guide shifts toward lower-impact protein sources.

2. Hyper-Personalization & Customization: Personalized Retail Drives 40% Higher Revenue

80% of consumers prefer buying from retailers that provide personalized interactions. According to research by McKinsey, companies that excel at personalization generate about 40% more of their revenue from personalization than average market players.

Moreover, regulatory momentum strengthens the adoption of hyper-personalization and customization in retail. GDPR, CCPA, and the phase-out of third-party cookies push retailers to build compliant first-party data ecosystems that support personalization at scale.

At the same time, retailers accelerate investments to operationalize hyper-personalization and customization across channels. Amazon attributes up to 35% of its revenue to AI-driven retail recommendations. And, in 2024, the company launched a generative AI engine that rewrites product titles and suggestions for each user.

Similarly, Walmart’s Wallaby retail LLM personalizes homepages for shoppers and improves conversion through adaptive content.

Sephora uses hyper-personalization and customization through Color IQ, which analyzes 10 000+ skin tones. Its solution increases engagement and conversions.

Nike’s Nike By You customization model lets customers personalize footwear, such as colors, materials, and details, via online or in-store studios.

Predictive analytics drive higher marketing ROI by anticipating next-best actions for each shopper.

Also, large language models (LLMs) generate personalized product descriptions and conversational guidance.

Meanwhile, customer data platforms (CDPs) unify app, store, and loyalty data into real-time 360-degree profiles that provide dynamic retail recommendations.

Taffi offers a Hyper-Personalized Retail Search and Discovery Platform

Saudi Arabian startup Taffi offers an AI-driven retail personalization suite that supports fashion shoppers through tailored guidance at every digital touchpoint.

Its conversational shopping tool uses natural-language inputs to recommend styles. The Fashion Passport feature then builds a dynamic shopper profile from direct preferences and browsing behavior.

Discovery Assistant changes product listing pages into personalized, scroll-based feeds. Meanwhile, the Search Assistant identifies complete style recommendations directly from search queries.

The Product Stylist pairs items across categories in real time and integrates product-specific Q&A into the browsing flow to refine decisions.

Taffi also aligns recommendations with individual intent, cultural context, and real-time inventory to create more relevant shopping experiences.

Artzap.AI specializes in GenAI-based Personalized Virtual Try-Ons

Luxembourg-based startup Artzap.AI provides a generative AI-powered virtual try-on solution that delivers hyper-personalized shopping experiences for fashion e-commerce.

Its virtual try-on solution trains a user-specific AI model from a set of basic selfies. This solution then generates highly realistic images that reflect accurate facial resemblance, correct proportions, and multiple outfit variations.

Virtual try-on solution enhances personalization by incorporating brand-defined scenes and adapting outputs across sizes. It integrates tailored recommendation blocks that match individual shopper preferences.

The solution also removes the need for costly 3D models and produces professional-quality visuals that support more confident purchase decisions.

3. AI-Powered Retail Operations: AI in Retail Market to Hit USD 164.7B by 2030

Rising digital competition, customer acquisition costs, omnichannel pressure, and margin compression drive AI integration in retail operations.

Retailers are shifting from legacy tools to software-defined retail ecosystems. For example, Stitch Fix uses generative AI to forecast demand, select items for each customer, and guide inventory planning.

Likewise, Instacart uses AI-driven order batching and fulfillment optimization to improve product delivery and shopper efficiency.

AI optimizes omnichannel performance by unifying online and in-store journeys. ASOS uses Azure AI Foundry, Azure OpenAI Service, and a recommendations engine on Microsoft Azure to personalize product discovery across its website and app. This AI-powered experience curates fashion selections in real time by combining trend data, customer preferences, and natural-language interactions.

AI reduces costs in e-commerce logistics through automated picking, route planning, and warehouse robotics. Zara deploys AI robots at its Spanish fulfillment center to handle 2400 packages simultaneously for online order pickup.

Machine learning (ML) models also forecast e-commerce demand by analyzing weather, social signals, events, and local preferences. Costco uses ML to maintain productivity and sustainability in their fresh foods department.

Edge computing supports real-time personalization by processing customer actions instantly. It supports dynamic homepage layouts, instant stock checks, and live pricing adjustments.

Additionally, AI-enabled computer vision improves digital product discovery. ASOS’s Style Match visual search tool identifies similar products from a photo in seconds.

Chatbots and conversational AI reduce customer service workloads. Starbucks’ Deep Brew platform personalizes mobile orders and improves user engagement.

A recent study found that retailers adopting advanced analytics and AI-based personalization tactics saw 18% higher revenue.

Consequently, the global AI in the retail market is projected to grow to USD 164.74 billion by 2030, at a CAGR of 32%, driven by increasing digital transformation across global retail.

Otacta automates Retail Decision-making with Autonomous AI Agents

Canadian startup Otacta specializes in an AI-powered retail operations platform that automates daily store management through its autonomous agent, Sofia.

The autonomous agent connects directly to Shopify, Klaviyo, Ads Manager, and GA4 to gather real-time signals on pricing, inventory, traffic, and demand. It then evaluates indicators to detect margin erosion, stalled SKUs, underperforming categories, delivery delays, and shifts in competitor pricing.

Sofia follows through by adjusting prices, recommending markdown bundles, pushing aging stock, and rebalancing category mixes. It also tests decisions through built-in A/B workflows. These continuous actions recover revenue, protect margins, and maintain operational consistency across stores.

Captain unifies Retail Data for AI-driven Category Analytics

Dutch startup Captain creates an AI-powered retail operations platform that unifies and analyzes retail data to improve category management.

The platform integrates inputs from sources such as Circana, Nielsen, Roamler, and ex-factory systems. It then applies AI-driven normalization to create a single, consistent dataset that eliminates mismatches and manual cleanup.

Further, the platform converts this unified data into near real-time insights through dashboards that reveal category performance, promotional impact, margin shifts, and waste patterns.

Its AI assistant also retrieves answers through natural language queries, reduces analysis time, and removes the need for multiple tools.

4. Supply Chain Digitalization & Optimization: Online Grocery Sales to Reach USD 3.6T by 2033

The global online grocery sales are expected to jump to USD 3.61 trillion by 2033, highlighting the rapid escalation in retail complexity that demands advanced digital supply chain capabilities.

As online retail expands, real-time digital supply chains become essential. Modernized retail networks replace slow, linear flows with predictive, automated, omnichannel-ready systems.

Evolving consumer expectations remain a key retail driver. Amazon delivered 9 billion rapid-delivery retail orders in 2024.

Omnichannel adoption intensifies this shift. Walmart connected store-level and e-commerce inventory to support BOPIS and curbside pickup. This model reduces last-mile retail delivery costs by up to 20% and strengthens store-network fulfillment capacity.

AI-driven decision-making enhances retail forecasting. For instance, Walmart cut unit costs by 20% year-over-year with its next-generation automated fulfillment centers compared to manual sites. It digitized supply chain operations across 10 500 stores. This digitization enables automated routing, stock balancing, and replenishment.

Retail logistics costs fall through digital optimization. Amazon uses AI and ML to optimize its transportation network, including dynamic route planning, trailer handoffs, and network-level optimizations.

IoT solutions deepen retail transparency. Walmart partnered with Wiliot to deploy battery-free ambient IoT sensors across its supply chain, from distribution centers to stores. These sensors track location, temperature, humidity, and dwell time of pallets and shipments.

H&M set up an AI department in 2018 to allow the company to take data-driven decisions across its supply chain with a sustainability lens.

Blockchain builds retail trust. Walmart partnered with IBM using the open-source blockchain framework hyperledger fabric to build a food-track traceability system.

Digital twins model entire retail supply chain networks. A McKinsey supply chain analysis reports that companies deploying digital twins across their supply chain achieve up to a 20% increase in consumer-promise fulfillment. This improvement stems from linking inventory-deployment twins with transportation and fulfillment nodes. twins. McKinsey also finds that these digital-twin-enabled planning and optimization capabilities reduce labor costs by about 10%.

Walmart’s USD 520 million Symbotic partnership automated palletizing and item picking. The partnership also improved store-level replenishment and accelerated e-commerce throughput.

Venture funding continues to flow into retail supply chain tech. For example, Skydio raised USD 230 million for retail drone logistics.

Additionally, Shadowfax secured USD 100 million to expand retail last-mile delivery capacity across Indian metros.

Lyzer develops Retail Fulfillment Platform

Portuguese startup Lyzer offers a supply chain digitalization and optimization platform that streamlines retail fulfillment from the moment an order is placed till it reaches the customer.

The platform centralizes orders from every sales channel into a single dashboard. Its allocation engine then assigns tasks to pickers and drivers based on urgency, proximity, and workload to accelerate in-store and delivery operations.

It improves picking efficiency through optimized routes, multi-order smart carts, and organized product lists that reduce store traffic and speed up substitutions.

Further, Lyzer strengthens last-mile performance by bundling nearby orders and generating optimized multi-stop routes. It also coordinates driver pickups and maintains real-time tracking and proof of delivery.

Omniful advances Retail Supply Chain Orchestration

Saudi Arabian startup Omniful introduces an AI-powered supply chain digitalization and optimization platform. It unifies order management, warehouse operations, transportation, inventory, returns, and point-of-sale into a single connected system.

The platform integrates data from every channel and fulfillment hub. It then synchronizes orders, stock movements, and delivery workflows to maintain a coordinated flow from purchase to dispatch.

Also, the platform strengthens operational execution through real-time visibility and AI-supported decision-making. It automates key processes to reduce manual effort across OMS, WMS, TMS, and POS functions.

Moreover, the platform streamlines fulfillment by aligning picking, packing, routing, and delivery under one interface to ensure consistent accuracy and predictable lead times.

5. Next-Gen Payment Methods: Digital Wallets to Reach 52% of Global eCommerce Payments by 2026

Payments are vital to retail modernization because they determine checkout speed, customer experience, fraud prevention, and omnichannel scalability. Continuous innovation in digital wallets, real-time payments (RTP), SoftPOS, tokenization, and embedded finance is reshaping physical and digital retail transactions.

Globally, digital wallets accounted for 49% of all e-commerce payments and 32% of point-of-sale (POS) payments in 2023. These numbers are expected to cross 52% and 39%, respectively, by 2026. This wallet-first behavior makes mobile payments essential for retailers seeking faster conversion and lower checkout abandonment.

In India, the Unified Payments Interface (UPI), a leading payment system, is processing more than 15 billion transactions per month as of November 2024.

Moreover, frictionless checkout plays a major role in scaling next-gen payment rails. Amazon Go’s cashier-free “Just Walk Out” retail model uses computer vision and digital wallets to eliminate queues and create fully automated retail payments.

According to ACI Worldwide, real-time payment (RTP) systems will handle 27.8% of all global electronic payments by 2027. They enable instant retail refunds, instant pay-ins, and automated reconciliation, which improve cash flow for merchants.

Embedded finance strengthens retailer monetization. BNPL transaction volume is projected to reach USD 450 billion by 2026, driven by AI underwriting and POS-linked credit offers that improve retail basket sizes.

AI-based fraud engines modernize retail payments. Biometric authentication and behavioral analytics reduced retail fraud losses by double-digit percentages across major wallet and card networks.

Worldline and Castles Technology deployed SoftPOS across North America for retailers to accept contactless payments directly on smartphones without dedicated POS hardware.

A similar rollout by Visa’s Tap to Phone program enables small merchants to turn Android devices into secure payment terminals.

Blockchain and tokenization secure emerging retail payment flows. Sephora uses blockchain to verify cosmetic authenticity.

Also, retailers rely on tokenized card credentials to protect in-app and mobile wallet transactions.

Additionally, Microsoft Dynamics 365 Commerce and Adyen launched a global payment connector for supporting retail markets. It unifies card, wallet, BNPL, and open-banking payments under a single retail payment integration.

Embed enables Embedded Payments and Seller Activation for Retail Platforms

Dutch startup Embed provides a next-generation embedded payments platform that streamlines how retail ecosystems activate sellers, process transactions, and manage fund flows.

The platform enables instant payment acceptance by onboarding merchants through phased verification. Compliance checks run asynchronously as sellers begin transacting.

It then configures flexible pricing structures by seller type, category, region, or transaction value, giving platforms full control over fees without additional development work.

Moreover, Embed unifies in-store, online, and mobile payments into a single commerce layer, supporting POS, QR, and e-commerce checkouts through one integration.

Rewardly provides a Merchant-facing Payments Platform

Singaporean startup Rewardly provides a next-generation retail payment and loyalty platform. It integrates a unified POS system with digital ordering, automated menu control, and embedded payment processing.

The platform synchronizes in-person, online, and QR-based transactions through CommerceOS, which manages ordering workflows, inventory availability, and cashier operations in a single environment.

It also enhances customer engagement through LoyaltyOS, a system that links payments to rewards and automates member benefits. The system further supports acquisition, upselling, and retention campaigns across multiple touchpoints.

Moreover, Rewardly Pay processes payments through mobile terminals, QR ordering, and integrated business applications. It enables fast and secure settlements for restaurants and retail operators.

6. In-Store Innovations: Ralph Lauren deploys Smart Fitting Rooms with Interactive Mirrors

In-store innovations improve retail stores from simple product shelves into intelligent, data-driven experience hubs. The global retail automation market is expected to reach about USD 60.87 billion by 2032 at a CAGR of 9.7%.

Nike designs data-driven stores that stock assortments based on local online buying patterns, so the in-store selection directly reflects neighborhood demand. Whereas, Walmart uses AI workflow tools in stores to reduce shift-planning time and push real-time tasks to associates, which frees staff for customer-facing work.

Also, Decathlon equips every product with RFID tags and uses RFID checkout tables for shoppers to drop items into a tray and complete payment in under a minute instead of queuing at traditional tills.

Store fittings and trial zones act as major innovation arenas. Rebecca Minkoff and Ralph Lauren deploy RFID smart fitting rooms with interactive mirrors. This solution recognizes items, shows sizes and colors, and lets shoppers request additional products without leaving cabins. These in-store systems increase basket sizes, raise conversion, and capture granular data on what shoppers try versus buy.

Checkout innovation is a major focus of in-store innovation. Amazon Go‘s Just Walk Out technology uses ceiling-mounted cameras, shelf sensors, and computer vision/sensor fusion. This technology tracks customers and items as they move through the store.

IoT and electronic shelf labels (ESLs) modernize store infrastructure. In a Future Store operated by Metro, the retailer showcased ESLs alongside other advanced retail technologies such as smart shelves, RFID, self-checkout, and intelligent scales.

Further, smart shelves and sensors in grocery and fashion formats monitor stock gaps on the sales floor and trigger in-store replenishment tasks automatically.

Virtuon Technologies enables AR-powered In-store Virtual Try-ons

Indian startup Virtuon Technologies designs an in-store innovation platform that brings virtual try-on experiences and personalized sizing into retail environments.

The in-store innovation platform analyzes user measurements through ML to generate accurate body sizing recommendations.

Additionally, the platform overlays selected outfits onto a live image or uploaded photo using AR for a realistic 360-degree view. It strengthens in-store engagement by enabling shoppers to browse styles, filter options, and visualize fit before buying. This reduces uncertainty and supports more confident purchase decisions.

Reckon.ai supports AI-driven Autonomous Retail Shelving & Checkout Systems

Portuguese startup Reckon.ai introduces a patented AI technology that fuses visual recognition, smart sensors, and edge computing to identify products and track interactions, and manage stock. It supports cabinets, fridges, shelves, and unattended store formats.

It also operates as an intelligence layer that retrofits into current hardware or supports partner-built smart units. This enables real-time visibility into inventory, customer behavior, and store activity.

Moreover, the technology supports flexible payment options, secure data processing, and autonomous operations without turnstiles, apps, or QR codes.

7. Social Commerce & Livestream Shopping: Livestream Shopping drives 10-30% Conversion Rates vs. Traditional eCommerce’s 1-3%

The global livestream e-commerce market grows from about USD 19.86 billion in 2025 to nearly USD 258.76 billion by 2034 at a 33.01% CAGR.

This rapid expansion accelerates as mobile-first consumers, always-on social feeds, and the search for higher-conversion retail formats reshape how shoppers discover and buy products.

Moreover, 46% of gen Z and 35% of millennials now prefer social media over traditional search engines for discovery and search needs. They spend most of their digital time inside TikTok, Instagram, YouTube, and similar apps and expect to browse, evaluate, and purchase products without leaving those ecosystems.

Studies also show that they are 1.6 to 1.7 times more likely than older consumers to watch branded livestreams and complete purchases during those sessions.

Consequently, livestreams replicate in-store consultations by allowing viewers to ask real-time questions about fit, authenticity, and usage while hosts demonstrate products on camera. This interactivity removes uncertainty and increases purchase confidence.

According to a recent overview of livestream shopping states that livestream shopping conversion rates typically range from 10% to 30%, far exceeding traditional e-commerce averages of 1% to 3%.

AI and ML engines personalize recommendations during the stream, synchronize inventory, and trigger instant payments. AR and secure payment rails reduce friction around visualization and checkout.

At the same time, scarcity and urgency mechanics turn streams into high-velocity retail events. Brands run time-boxed shows, limited bundles, and exclusive discounts that trigger fear of missing out when viewers watch others buying in real time.

McKinsey’s landmark analysis on live commerce states that AOV in livestream shopping increases by 30% compared to traditional e-commerce due to real-time engagement, influencer interaction, and impulse-driven purchasing.

Social commerce also lowers entry barriers. Micro-influencers with 5000-50 000 followers achieve high conversion because niche audiences trust them. They enable rural producers and artisans to sell directly through a smartphone and a social account.

Fashion and beauty dominate adoption, with fashion holding 21.3% of live commerce. For example, SHEIN launched shoppable livestream collection launches, i.e., livestream-enabled shopping events, to drive sales.

Sociate enables Multimodal AI-based Social Commerce Discovery

UK-based startup Sociate introduces an AI-driven social commerce platform that aligns retail discovery with real-time trends emerging across Instagram, TikTok, and other social channels.

The platform uses the company’s proprietary cFIRST multimodal AI to interpret customer intent through text prompts, visual cues, and conversational search. It matches those inputs to relevant products without relying on manual attribute tagging.

It enhances social-driven retail engagement by capturing fast-moving fashion trends, tagging inventory automatically, and surfacing items the moment shoppers look for them online.

Moreover, the platform personalizes recommendations dynamically as tastes evolve. It enables retailers to support influencer-led discovery, trend-based shopping, and livestream-inspired demand in a single interface.

Mshop.live advances Live Video Shopping

Indian startup mshop.live enables small retailers to sell through real-time video interactions directly linked to a unique shop URL.

Its platform activates a live video shop in seconds by using a seller’s phone number or brand name as the digital storefront.

The platform supports personalized livestream shopping sessions where buyers speak with sellers, view products before purchase, request live demonstrations, and complete payments through integrated online options.

Moreover, the platform strengthens social-driven retail by allowing stores to share live shop links, offers, and updates across WhatsApp, Facebook, and SMS.

8. Phygital Retail Experiences: AR Visualization Improves Conversion Rates by 94%

Around 73% of shoppers now move between websites, apps, social feeds, and stores before completing a purchase. Gen Z shows even stronger demand for immersive interactions, with about 91.75% expressing interest in AR-based shopping.

These expectations position phygital retail as a baseline requirement in fashion, beauty, electronics, and home goods, where visualization and trial directly influence purchasing decisions.

A report states that products featuring 3D/AR content see an average of 94% higher conversion rates compared to those without AR visualization. In categories like beauty and fashion, shoppers using AR tools try more items in less time, spend longer interacting with digital environments, and return fewer products. This behavior improves revenue, margins, and inventory productivity.

Sephora demonstrates this impact with AR-driven journeys across its app and stores. Its Virtual Artist app and AR mirrors allow customers to test makeup virtually on smartphones or in-store screens. Trials of these tools have driven about a 31% sales uplift, with AR users converting at higher rates and returning significantly fewer items.

Walmart illustrates how immersive digital worlds extend phygital commerce. Its Zepeto integration lets users buy real No Boundaries items and receive a free virtual twin, linking digital identity with physical goods.

Additionally, Nike’s live stores show how phygital strategies change stores into data-driven hubs. Shoppers use the Nike app to scan products, check stock across channels, reserve items, and offer personalized rewards.

Gaudier creates Behavioral Analytics-based Immersive Phygital Retail Experiences

French startup Gaudier creates a phygital retail experience platform that merges interactive in-store technologies with real-time behavioral data to improve traffic, conversion, and basket size.

The startup embeds sensors, micro-cameras, and interactive devices into store fixtures. It then connects them to Gaudier Cloud, which centralizes device management, monitors performance, and generates alerts for proactive maintenance.

Its RetailLens technology captures privacy-compliant behavioral patterns across different store formats, tracking how shoppers move, engage, and interact with products.

Moreover, the platform analyzes these interactions to score customer experiences and identify optimization opportunities. It then recommends actions that enhance store performance.

Xpand deploys Autonomous Modular Retail Units for Phygital Shopping

Israeli startup Xpand offers a phygital retail platform that deploys modular, unmanned stores as plug-and-play units. This approach enables retailers to expand into dense urban zones, transit hubs, and other previously inaccessible locations.

The platform automates core in-store functions such as picking, packing, and inventory handling, supporting SKUs and managing items without manual intervention.

It further integrates real-time tracking, frictionless access, and shrinkage-free operations to maintain consistent availability and 24/7 service.

Moreover, Xpand’s off-the-shelf formats reduce real estate dependence and shorten deployment timelines. This allows retailers to reposition or scale stores rapidly based on demand.

9. Same-Day & Instant Delivery: US held a 38.6% Share of Global Same-Day Delivery Market in 2024

Same-day and instant delivery ecosystems reshape retail by compressing fulfillment cycles from days to hours. Platforms deliver orders within 30 minutes, meet rising demand for immediacy, and remove friction from online shopping.

As a result, this speed aligns purchasing with consumer intent, reduces cart abandonment, and creates a service layer that rivals traditional store convenience.

Moreover, consumer expectations accelerate this shift. A 2023 study on consumer electronics retailing shows that Amazon’s service standards raise expectations across the market. Consumers report lower satisfaction with other retailers when delivery or shipping performance falls below Amazon’s standards.

A 2025 academic study on e-commerce platforms found that for Gen Z, delivery service quality, including delivery speed, tracking visibility, and flexibility, influences purchase decisions, satisfaction, and repeat-buying behavior.

At the same time, large-scale e-commerce penetration expands the model. The US held a 38.6% share of the global same-day delivery market in 2024. For China, one estimate values the China same-day delivery market at USD 32.99 billion in 2025 and USD 49.08 billion in 2030.

Consequently, retailers compete on speed rather than price or product breadth, deploy high-velocity logistics networks, and expand into new categories to strengthen last-mile dominance.

Real-time inventory systems and RFID-based tracking raise stock accuracy in high-volume warehouses, while IoT-enabled asset monitoring reduces lost-in-transit incidents.

Digital twins support predictive capacity planning. Walmart’s automated fulfillment labs accelerate picking, sorting, and packing.

Additionally, automated warehouse systems amplify throughput. For example, Ocado’s robotic grids process up to 65 000 orders per week. AI-based route optimization also shortens delivery windows and lowers fuel consumption.

Micro-fulfillment centers (MFCs) and dark stores intensify delivery speed by positioning high-velocity inventory within a few kilometers of shoppers and reducing picking times to minutes. MFCs rely on compact AS/RS systems, high-density storage, and predictive demand algorithms to sustain throughput.

IoT-enabled cold-chain sensors ensure temperature, humidity, and shock compliance for perishables.

Consequently, the global same-day delivery market will grow to USD 331.04 billion by 2032 at a 41.7% CAGR.

Instacart deepens partnerships with Costco and Kroger through Storefront Pro for 30-minute priority delivery.

Also, Uber Eats integrates Getir’s dark-store network for minute-level fulfillment.

Meanwhile, Zepto raised USD 450 million in 2025 at a USD 7 billion valuation and scaled to 1.7 million daily orders.

Blinkit also surpasses INR 9421 crore in gross order value (GOV) in Q4 FY25. It plans to expand its dark-store network to 3000 locations by FY27.

Brizo provides Sustainable Same-Day Delivery

Swedish startup Brizo enables retailers to provide fast and sustainable deliveries directly from their webshops.

Its platform integrates with e-commerce systems in minutes and receives incoming orders automatically. It then processes these orders through Brizo’s network of local warehouses, where inventory is optimized and distributed to shorten delivery distances.

It manages storage, picking, packing, delivery, and returns through one system. This gives retailers full operational coverage while they retain ownership of all customer relationships and data.

Getitfast enables Instant Delivery Optimization

Australian startup Getitfast specializes in a same-day and instant delivery service that enables retailers to offer fast last-mile fulfillment without complex integrations.

The platform receives delivery bookings directly from retailer systems or simple store workflows and assigns orders to its dedicated national driver network. It then tracks every step from pickup to drop-off with real-time status updates.

It enhances operational efficiency through proof-of-pickup, proof-of-delivery, and automated notifications that keep customers informed throughout the delivery cycle.

10. Retailtainment: Pop-up Retail Market to Hit USD 144.3B by 2032

Retailtainment gains momentum as the pop-up retail market reaches USD 95 billion in 2025 and grows toward USD 144.3 billion by 2032. At the same time, the immersive entertainment market is projected to reach USD 442 108.2 million by 2030 at a 26.3% CAGR.

Moreover, pop-up stores and themed concepts create exclusivity and limited-time engagement that traditional formats cannot match. For instance, Paramount’s South Park pop-up in London and Tokyo used immersive, interactive scenes and exclusive merchandise to bring the show into a retail context.

L’Oreal’s Lancôme LAX activation adds to this growth by increasing basket sizes by more than three products per transaction.

AR leads this evolution, with Coach’s Zero10 AR mirrors increasing window engagement by 93.5% and foot traffic by 50%.

Similarly, Decathlon offers Apple Vision Pro-powered virtual showrooms that allow customers to explore products in 3D and real size, either at home or in stores.

Meanwhile, IoT and RFID infrastructures strengthen operational intelligence. Old Navy’s RADAR system, for example, offers real-time inventory accuracy across 1200+ stores.

Holographic displays further enhance in-store immersion. H&M’s Williamsburg installation abandons the traditional store layout in favor of immersive, rotating themes and experiential marketing activation.

Additionally, computer vision systems optimize store layouts and reduce shrinkage. Also, phygital integration platforms unify touchpoints into a cohesive omnichannel journey.

Nike’s NIKELAND extends these experiences into virtual spaces as it attracts 6.7 million visits from 224 countries.

Slip offers a Customer Engagement Retention Platform

UK-based startup Slip introduces a retailtainment platform that improves ordinary purchase receipts by transforming them into interactive, engagement-driven touchpoints. This approach extends the in-store experience far beyond the checkout moment.

The platform links each transaction to an individual shopper in real time. It generates personalized digital receipts that deliver tailored recommendations, loyalty prompts, event invitations, and other post-purchase actions.

Moreover, Slip enhances in-store entertainment and engagement by turning every receipt into a dynamic communication channel that encourages repeat visits. This strengthens customer connection while promoting brand campaigns across physical and digital touchpoints.

LunchTable streamlines Fan Activation & Brand Engagement

US-based startup LunchTable designs a retailtainment platform that innovates fan enthusiasm into entertainment-driven brand engagement across digital channels.

The platform uses AI to activate fans as brand ambassadors by distributing curated content calendars that include original brand posts, user-generated media, and sponsor material.

It onboards fans through one-click or QR-based activation for fans to automatically share approved content, personalize posts, or create new material inspired by brand prompts.

Moreover, LunchTable embeds gamification through leaderboards, rewards, exclusive experiences, and recognition tools that sustain participation and turn brand engagement into an ongoing experience.

It also provides real-time performance dashboards that track reach, clicks, and conversions.

Discover all Retail Trends, Technologies & Startups

Spatial commerce, holographic product displays, and autonomous micro-stores hint at the next frontier of retail. AI-driven merchandising, immersive phygital environments, and sensor-rich store networks are expected to redefine how products are discovered, purchased, and delivered.

These emerging developments show how the retail industry is preparing for a future where experiential design, autonomous operations, and intelligent supply chains converge to improve how consumers interact with brands worldwide.

The Retail Trends & Startups outlined in this report only scratch the surface of trends that we identified during our data-driven innovation & startup scouting process. Identifying new opportunities & emerging technologies to implement into your business goes a long way in gaining a competitive advantage.