The Future of RetaiL
5 Insights for Success in 2026
March 2026
Despite all the noise about the “Future of Retail,” one truth is becoming clear: customers don’t want more technology, they want less effort.
The past few years have seen rapid experimentation across AI, personalisation, frictionless checkout, and retail media.
Some innovations have delivered real value, others have missed the mark. The difference rarely comes down to how advanced the technology is, but whether the experience feels genuinely useful, intuitive, and human.
As we look ahead to 2026, five themes now define where retail and marketing leaders should focus to win.
1. OMNICHANNEL IS MANDATORY
Australian shoppers are firmly omnichannel. Online retail now represents 20 percent of total spend, yet more than 80 percent of purchases still involve a physical store at some point for browsing, collecting, returning or reassurance. Customers move between mobile, web and store without thinking about it, and they expect brands to do the same.
The retailers winning today are not trying to force people down a single, controlled path. They are designing experiences that remove friction across channels so every interaction feels connected. A clear signal of this shift is Amazon’s partnership with Harris Farm Markets.
Rather than treating online and physical as competing models, the partnership blends Amazon’s digital reach, fulfilment and convenience with Harris Farm’s trusted fresh‑food credentials and store network. Ultimately, meeting customers wherever the moment of need occurs.
The takeaway: Omnichannel is not about being everywhere. It is about feeling connected, credible and consistent wherever customers choose to engage.
2. AI is becoming a decision‑shaper, not just a helper
Woolworths’ upgraded AI assistant, Olive, represented a meaningful shift in how customers could shop. Olive can interpret handwritten recipes, plan meals and, with permission, add items directly into a basket.
AI is no longer simply supporting the shopping journey. It is beginning to shape decisions earlier in the process.
This influence brings new responsibility. Bunnings faced scrutiny after its AI assistant provided unsafe DIY electrical advice, forcing public apologies and tighter safeguards, while Woolworths has also seen backlash after Olive recently started rambling about its mother.
The takeaway: AI‑driven convenience is powerful, but customers will only embrace it if brands make safety, clarity and responsible design central to the experience.
3. Data is not enough to explain behaviour anymore
Retail data continues to show growth, with turnover up around 5% year‑on‑year, but it masks increasingly volatile behaviour. Shoppers trade down most weeks, then selectively splurge in moments of perceived value or relevance. The data shows the outcome, not the motivation behind those decisions.
That’s why customer experience now matters as much as performance metrics. Ease, confidence, and reassurance are shaping behaviour as much as price. Tools like Humii uncover the ‘why’ behind these choices. As Australia’s first full CX benchmarking platform, Humii combines real mystery‑shopping insights with AI analysis to pinpoint friction across the customer journey.
The takeaway: Being data rich is no longer enough. Retailers must understand the lived experience behind the numbers.
4. The shelf is quietly becoming a media channel
Retail media has scaled rapidly online, but a significant growth opportunity is now emerging in‑store. Digital shelf labels, dynamic pricing, and on‑shelf messaging are influencing decisions at the point of purchase, effectively turning the shelf into a media channel.
These advancements generate richer data, giving brands clearer visibility into how media, brand, and in‑store factors combine to drive results.
Our Data & Analytics suite continues to evolve, now unifying digital shelf and digital media analytics into a single view of growth, enabling brands to pinpoint performance drivers and optimise channel mix and messaging as one connected strategy.
The takeaway: Media effectiveness can no longer be judged in isolation. To win in 2026, brands need to break down silos to integrate media, creative, and shopper experience.
5. Trust is emerging as the most important brand asset
With 89% of Australians using AI‑powered shopping tools and AI recommendations influencing up to two‑thirds of younger consumers, AI discovery is reshaping how retail brands are found and chosen.
In this environment, trust isn’t assumed, it’s built through consistent signals, clear value, and strong visibility across AI platforms. For marketers, that means ensuring your brand shows up accurately and confidently wherever AI is guiding purchase decisions.
The takeaway: AI visibility is now a brand performance metric. Marketers must measure and manage how their brand appears across AI platforms, because if you are not visible, consistent, and trusted in AI‑led recommendations, you are not in the consideration set.
What marketing leaders should focus on now
1. Make omnichannel experiences feel seamless rather than complicated
2. Use AI to support decisions and be transparent about how it works
3. Treat Customer Experience as the true performance metric
4. Elevate stores and shelves as media and experience environments
5. Measure visibility in an AI driven world, and build trust