This Deloitte report examines how 2026 could prove to be a watershed moment for global retail, as the sector contends with significant shifts in commerce, customer engagement, and operational discipline, with artificial intelligence at the core of these disruptions. While long-standing fundamentals such as customer centricity, financial prudence, operational excellence, data-driven insights, and continuous adaptability remain central to retail strategy, the findings from 330 global retail executives suggest that adaptability will be tested in new ways.

Despite expectations of a modest slowdown in economic growth and tighter consumer spending in some regions, most retail executives anticipate revenue growth and margin expansion. Their optimism appears tied to expected benefits from cost savings, efficiency programmes, and productivity initiatives. At the same time, priorities are shifting toward growth, the customer, and investment in operational and digital transformation.

The report identifies a structural shift toward value-seeking consumers, with many households reassessing what “value” means. Price matters, but factors such as quality, service, ease of checkout, loyalty programmes, and employee attitude continue to influence perceptions. Retailers plan to expand value-priced assortments, strengthen private-label ranges, and enhance omnichannel experiences, with AI-driven personalisation expected to play a stronger role.

AI’s movement from experimentation to execution sits at the centre of the 2026 outlook. Retailers expect rapid adoption of AI and agentic AI across operations, and many foresee the collapse of the traditional multi-step shopping journey as AI agents condense discovery, decision-making, and checkout into a single interaction. This shift may weaken brand loyalty, pushing retailers to ensure clean, accurate, and AI-readable product and pricing data while updating legacy systems and training teams to work alongside AI tools.

Marketing and customer experience are also being reshaped by AI. Retail executives expect to bring more activities in-house and rely on AI-enabled personalisation, content generation, and audience intelligence. Retail media networks are seen as crucial to both revenue and profitability, with many expecting an expansion into non-endemic advertising and a diversion of trade spend toward RMNs.

Supply chain transformation is highlighted as essential for resilience amid rising global trade-related costs. Most retailers are considering onshoring, nearshoring, or supplier diversification, with AI-driven visibility and planning tools expected to support inventory and fulfilment optimisation. Many expect a positive return on AI-driven supply chain initiatives within the next year.

Financial fortitude remains critical, as nearly all executives expect higher costs in 2026. Retailers anticipate shifts in investment priorities, changes in capital allocation, higher thresholds for free shipping, adjustments in product mix toward higher-margin items, and gradual price increases. Cost discipline is seen as a competitive advantage, with data-led pricing, targeted assortments, and expanded private-label offerings supporting margin protection.

The report concludes that while the fundamentals of retail hold steady, the convergence of value-seeking consumers, AI-driven commerce, reimagined marketing, transformed supply chains, and disciplined margin management will define the year ahead. Retailers that treat adaptability as a strategic capability and elevate core strengths with AI and insight are positioned to shape the next era of retail.