By Stephen DeAngelis
The physical retail sector continues to struggle as consumers are drawn to the convenience of ecommerce. To adapt to the changing business environment, retailers have embraced omnichannel operations and explored how they can leverage cutting-edge technologies. Efforts to adapt are still underway. Tanguy Caillet and Charisma Glassman, executives at Genpact, observe, “Retail is changing rapidly, especially with the industry’s willingness to adopt technology that help consumers on the front line. We expect to see even more transformation in how retailers and suppliers work together in the coming year.”[1] They underscore the fact that retailers must address both consumer and supply chain challenges.
Adapting to Consumer and Supply Chain Trends
Consumer Trends.
Ellen Kan and Tobias Maria Guenter, partners at Simon-Kucher, explain that global economic conditions weigh heavily on both retailers and consumers. They write, “In the consumer sector, whether brand or retailer, everything revolves around emotion: selling joy, aspiration, comfort, connection, and a sense of fulfillment. However, as we look toward 2026, the environment has become increasingly challenging for both companies and the consumers they serve. Economic pressures, tighter household budgets, and years of inflation have reshaped spending behavior, while rapid technological change continues to transform the landscape.”[2]
• Personalization and Reconnecting with Consumers. Kan and Guenter explain, “Retailers are returning to the essence of what defines their business, understanding and delivering perceived value from the customer’s point of view. In 2026, value is no longer just about low prices; it’s about the emotional and functional connection that makes shoppers choose one store over another. Retailers are increasingly emphasizing authenticity, trust, and customer experience as central components of their value proposition.”
• Agentic Retail. According the PYMNTS staff, “The traditional eCommerce model is beginning to fracture and can no longer be taken for granted. … Agentic AI marks a sector-wide shift from assistive to autonomous commerce. Assistive AI like chatbots, recommendation engines and search optimization each support human decision-making. However, Agentic AI represents an entirely new paradigm by potentially replacing elements of that same decision-making process, all the way to its execution.”[3] According to Jenny Hadlow, chief operating officer at Checkout.com, “2026 will be the year agentic AI moves from curiosity to practical utility for mainstream shoppers, with the first real shift toward automating everyday essentials like groceries, bills, and household basics.”[4]
• Shoppertainment. Retail strategy consultant Catherine Erdly agrees that connecting with customers will become a priority with retailers. She insists, “Discretionary more emotional shopping is moving … towards more immersive, human-led platforms, [like TikTok]. … Shoppers want to be entertained. Brands need content that delights the audience, often in large volumes. It’s no wonder then that the rise of ‘shoppertainment’ has led to a growth in brands working with creators to deliver what they need.”[5] Retail journalist Adam Blair agrees with this trend and notes, “The lines between retail media, social media, and AI commerce will blur.”[6]
• Phygital Retail. With the embrace of omnichannel operations, retailers have entered the so-called phygital retail business landscape. Anthony Walsh, Head of U.S. Retail Sales at Ingenico, explains, “Consumers love the speed, convenience, and personalization of engaging with retailers digitally. However, at times they also want the option to see, touch, and try products before they buy, take their purchases home immediately, and enjoy the social experience of in-store shopping. A phygital retail strategy combines the best of both the physical and digital worlds.”[7] Walsh also notes, “Advanced technology is essential to phygital retail.”
Retail Supply Chain Trends.
Retailers need to pay as much attention to supplier-facing trends as they do to consumer-facing trends. According to analysts from the Kaizen Institute, omnichannel operations are creating new pressures for retailers. They explain, “Behind the convenient façade of omnichannel retail lies a logistical system under significant pressure, driven by rising costs and operational complexity.”[8]
• Regionalization of Trade. Rising transportation costs and increased tariffs are reshaping global supply chains. Caillet and Glassman write, “In 2026, we expect suppliers to focus on centralizing their internal operations with a more meaningful adoption of advanced technologies. This will then enable the regionalization of products to deliver goods to consumers at record speed. Centralization leading to regionalization may seem like an unexpected approach, but it’ll define the year ahead.”
• Technology with Purpose. Kan and Guenter write, “While new technologies like AI and advanced analytics are unlocking unprecedented levels of differentiation, the leading manufacturers are using these tools with intention. The trend is shifting from ‘data for data’s sake’ to technology with clear business purpose, deploying digital capabilities that drive tangible outcomes such as smarter pricing, sharper targeting, and more effective execution. The future belongs to those who integrate technology seamlessly into strategy, not as a separate exercise but as an enabler of better decisions and results.” I agree with that assessment. At Enterra Solutions® we developed the Enterra System of Intelligence™ to help clients perform end-to-end optimization, planning, and decision-making at scale and at the speed of the market with human-like intelligence and reasoning. The System is comprised of a set of interconnected business applications that leverage a common analysis, optimization, and decision-making/learning platform. These business applications include: Enterra Consumer Insights Intelligence System™; Enterra Revenue Growth Intelligence System™; Enterra Demand and Supply Intelligence System™; Enterra Global Insights and Decision Superiority System™ (which is part of the Enterra Business WarGaming™ solution).
• Global Value Networks. Jim Bureau, President & CEO at Loftware, insists, “The traditional supply chain, which was designed as a sequence of handoffs from one stakeholder to another, has reached the limits of its usefulness. It fractures under pressure because it was built for a world that doesn’t exist anymore. The future belongs to connected networks where all trading partners — suppliers, manufacturers, distributors, retailers, internal teams and regulators — operate from a shared foundation of data and standards rather than a patchwork of isolated systems.”[9] Caillet and Charisma Glassman agree with Bureau’s assessment. They explain, “Today’s supply chain is less a straight line, and more a dynamic web of nodes that are frequently changing, reconfiguring, and adapting to external factors. … Supply webs are becoming indispensable. As consumers increasingly expect faster delivery and seamless experiences, retailers who fail to adopt these innovations risk falling behind in delivering a positive customer experience.”
Concluding Thoughts
Kan and Guenter observe, “Retail is, by nature, a business of details. And in today’s landscape, it’s also a business of exceptions. Success depends on embracing complexity and designing experiences that resonate with different customer segments in distinct ways.” Erdly adds, “The brands that will win in 2026 will be the ones that engage with the changing landscape instead of burying their heads in the sand. They will need to learn quickly how data, trust, and engagement all come together to create a compelling reason for customers to shop with them.” Analysts from the Kaizen Institute conclude, “Retail trends for 2026 paint a picture of an industry in the midst of reinvention, where every challenge brings new strategic opportunities. … For retail leaders, the implications are clear: agile adaptation is no longer optional; it’s imperative. Companies that harness the power of retail media and leverage their customer data can unlock high-margin revenue streams and gain a competitive edge with suppliers.” Consumers are going to continue to buy things. What they buy, where they buy them, and how they buy them will shape the future of retail.
Footnotes
[1] Tanguy Caillet and Charisma Glassman, “The Trends That Will Define Retail Supply Chains in 2026,” SupplyChainBrain, 5 January 2026.
[2] Ellen Kan and Tobias Maria Guenter, “Top consumer & retail trends to watch in 2026,” Simon-Kucher Blog, 15 December 2025.
[3] Staff, “Retailers Prepare for Agent-Driven Shopping at Scale,” PYMNTS, 6 January 2026.
[4] Catherine Erdly, “3 Major Trends That Will Reshape Retail In 2026,” Forbes, 22 December 2025.
[5] Ibid.
[6] Adam Blair, “2026 Retail Predictions: More AI, Yes, but That’s Not All, Folks,” Retail Touchpoints, 6 January 2026.
[7] Anthony Walsh, “2026 Retail Trends: Taking What Works and Making it Better,” Ingenico, 5 December 2025.
[8] Staff, “Global retail trends 2026: inside the industry’s reinvention,” Kaizen Institute.
[9] Jim Bureau, “The Supply Chain Power Shift: Five Forces Reshaping Global Commerce,” Forbes, 26 December 2025.
