17 retail industry trends that will shape 2026

As Australian and New Zealand retailers prepare for the 2025/26 holiday season and the year ahead (2026), they’re contending with rising costs and shifting shopper expectations. These are just a few of the changes that are reshaping how customers decide what to buy. That, in turn, impacts what businesses must do to stay competitive.

To help you prepare, we surveyed 8,350 shoppers and 1,700 retail leaders worldwide. Our findings, published in our Sixth Edition Connected Shoppers Report , reveal the biggest opportunities and challenges currently shaping the retail landscape.

In this article, we’ll explore the key retail trends with local examples, and show how they’re reshaping what it takes to build a loyal customer base in 2026.

1. Growth depends on unified commerce
2. Stores are now experience and service hubs
3. Shoppers discover products on social media
4. Too many systems are slowing down in-store teams
5. Customers use their mobiles while they shop
6. Autonomous AI agents are becoming increasingly common in retail
7. Consumer trust in AI is dependent on transparency
8. Brand loyalty is fragile
9. Loyalty programs need to expand and diversify
10. Unique experiences attract younger shoppers
11. Engagement gaps undermine loyalty ROI
12. Retailers expand into new revenue streams
13. Fulfilment flexibility becomes table stakes
14. AI adoption is broader than you might think
15. The data challenge behind AI and how to use it to your advantage
16. Customers are spreading their spending across channels
17. Retailers are already seeing returns from AI

Unified commerce means managing all of your retail operations on one platform, instead of using separate systems for your POS, order management, ecommerce, and loyalty.

We found that 88% of retailers say unified commerce will be very important or critical to their success over the next two years.

However, only 15% of respondents have managed to implement and measure the results of a unified system.

A large part of the adoption challenge comes from legacy systems that separate online and offline operations, leaving staff without a full view of the customer.

In practice, this forces sales associates to switch between tools, creates inconsistent customer experiences, and lacks the data needed to properly implement AI.

To close this gap, you can connect your data from your existing systems (POS, ecommerce, loyalty, order management and more) to Salesforce Retail Cloud. This connection will allow you to see all your data in tidy dashboards.

Once that foundation is in place, Commerce Cloud and Data Cloud can help you use this information to develop a data-backed strategy for your business and personalise the customer experience using AI.

One great example of this in practice is Kellanova, which uses Salesforce to unify its data and AI planning. The company has cut promotion time by two weeks and can now process hundreds of claims in minutes, ensuring the right products reach the right shelves at the right time.

If you’d like to see how retail leaders are adapting to changing shopper habits, watch the latest Connected Shoppers Webinar. You’ll hear from Salesforce commerce experts as they unpack insights from the State of Connected Shoppers Report , including how retailers are using AI, social media, and data to improve the shopping experience.

In our research, we found that purchases made in-store are projected to fall from 45% in 2024 to 41% in 2026 . Despite this, physical stores are still vital hubs where shoppers can attend events, repair or customise products, try on items with AR, or collect online orders.

Fulfilment is now a bigger part of physical retail, with 52% of consumers saying they have purchased products online to be delivered to their local store.

On top of being fulfilment hubs, retail stores need to offer something special to entice customers in-store. This means rethinking store layouts to include spaces for events or services, and making sure customers can easily buy online and pick up or return their orders in person.

Commerce Cloud supports this shift by giving retailers a unified order management system across online and physical locations. This gives you the flexibility to deliver great customer expectations wherever your customers shop.

One standout example of effective in-store experiences can be seen from Australia's popular DIY hub, Bunnings. They run free DIY workshops and kids activities in their stores that attract new customers and build community connections, driving long-term loyalty.

Social media has become the starting point for many shoppers’ journeys, especially among younger generations.

We found that 53% of consumers now discover products on social platforms, up from 46% in 2023. One in four has even gone on to make a purchase directly through social media.

One surprising finding from our research is that messaging apps are becoming a driver of retail sales, with 16% of consumers already buying through them. Often called ‘dark social’ because they are hard for marketers to track, these channels are becoming a big part of how shoppers convert.

This means that making your products easy to share within these platforms can increase your reach and sales.

Another trend we found was that 40% of Gen Z (ages 13 to 28) use TikTok to find products, compared with just 4% of Baby Boomers . This highlights the importance of understanding your target audience in order to market effectively.

Retail workers are under growing pressure to deliver great service to make the in-store experience worth it for buyers, and they have to do that while managing increasingly complex systems. On average, new hires need to learn 16 different tools (up from 12 in 2023), just to do their jobs.

Associates say they spend only 28% of their time at the checkout, with the rest of the time spread across tasks like fulfilment, customer service, and store operations.

This over-complexity means associates spend more time switching between systems than serving shoppers. This leads to slower service, poorer customer experiences, and higher employee turnover. It also makes it harder for retailers to roll out new technologies, since staff are already stretched thin.

The solution here is to simplify the tech stack and empower retail workers with AI-enabled tools. Service Cloud brings service tasks into one platform. You can also use Sales Programs to deliver AI-guided training and knowledge sharing in the tools your teams already use.

For today’s shoppers, what’s on their phone is as important as what’s happening in the store itself. Customers use their devices to check online reviews, compare prices, scan QR codes, or even buy from competitors while standing in the aisle.

This is another place where we see a generational difference. Gen Z is twice as likely as Baby Boomers to use a store app for checkout, and eight times more likely to place an order with a competing retailer while still in-store

To get ahead of this trend, you need to have a strategy for how you’ll direct your customers to use their mobile devices. Start with apps that are fast and personalised, so shoppers see real value in keeping them open while in-store. Add features like QR-driven content or location-based shopping lists to make the experience easier and keep attention on your offers rather than your competitors.

Marketing Cloud Engagement can help you bring these touchpoints together, personalise them in real time, and keep your brand top of mind while shoppers are on their phones. One great example comes from White Fox Boutique, an Australian fashion brand that uses Salesforce to personalise SMS and app content across every stage of the customer journey. Through delivering timely mobile offers and reminders, the brand saw a 40% uplift in Black Friday sales and a 10% conversion rate from abandoned cart pop-ups.

It’s worth noting that only 4% of retailers say they have no plans to use AI agents, highlighting how mainstream AI has become for retail businesses.

What’s so appealing about AI agents compared to traditional AI is that they can take action. For example, they can handle product returns, draft marketing copy, or support staff training. All of this takes away the more tedious admin parts of your retail staff's day and allows them to focus on rolling out the red carpet for your customers.

With Salesforce Agentforce, any retail team (SMB to enterprise) can deploy AI agents safely with guardrails in place.

AI is another place where we see a strong generational divide. Gen Z shoppers are 10 times more likely than Baby Boomers to use AI for product discovery.

As retailers increase their use of AI, customers are demanding more control and clarity over how it's using their data. This means offering clear opt-ins, visible privacy safeguards, and the reassurance that a human can step in if needed. Without these measures in place, AI can feel invasive, rather than helpful.

Retailers have the same safety concerns as their customers, but 81% say they would trust AI to act on its own if strong safeguards are in place.

In Australia, trust matters more than ever. Consumer trust is at its lowest point in eight years, with 67% of people believing companies are reckless with their data. Retailers that earn back that trust will be the ones who see customers engage with AI tools, not avoid them.

The safe path forward is to build transparency into every step. That means offering clear data policies, giving shoppers control over how AI interacts with them, and making recommendations explainable.

Our Salesforce Trust Layer and Data Cloud help retailers deliver on these expectations, ensuring AI is ethical, secure, and transparent.

Since customers are quick to switch, winning them back often costs more than keeping them engaged. The smarter financial choice is to focus on retention through the right mix of pricing, reliable quality, and service that meets expectations.

Our Loyalty Management can help by turning customer data into personalised rewards, offers, and experiences that build stronger connections and keep shoppers coming back.

One example of a standout loyalty program we’ve supported is MECCA’s Beauty Loop, which combines a box of samples with events and exclusive access to keep customers engaged and feeling appreciated.

However, as you’ll see, 35% of these shoppers belong to a loyalty program they don’t use. This shows that launching a program on its own isn’t enough. To drive long-term engagement, programs need to feel valuable to different customer segments.

Our Loyalty Management helps by using customer data to segment audiences and personalise rewards and experiences. Plus, since it runs on the same platform as your customer data, you can manage your programs where all your insights already live.

If you’re looking for a great example of a modern loyalty program that customers actually engage with, look no further than IGA . Its new cashback program gives shoppers immediate savings instead of points. This simple model works, as it gives customers what they value most in the current cost-conscious environment.

We found that younger shoppers are placing more value on the overall experience, rather than on discounts alone. While money-saving perks still drive sales, Gen Z is three times more likely than Baby Boomers to say they prefer exclusive experiences as part of a loyalty program.

This shift shows that emotional connection is becoming as important as financial incentives. For retailers, that means loyalty needs to feel like more than a transaction. Adding tiers for events, early access, gamified challenges, or collectable-style rewards can make shoppers feel like insiders rather than customers.

Marketing Cloud can help you design these special customer interactions at scale by personalising invitations, reminders, and follow-ups across email, SMS, and social channels. The result is a loyalty strategy that keeps customers engaged between purchases and strengthens long-term retention.

A strong local example of this in practice can be seen from Coles , which has revived its popular adult collectables program. By bringing back their premium glassware sets as rewards, Coles tapped into the growing trend of at-home entertaining while giving shoppers something tangible to look forward to when they shop.

As we mentioned in Trend #9, 35% of shoppers sign up to loyalty programs but never actually use them.

For retailers, that lack of engagement has two costs. It wastes marketing spend on underused programs and misses out on the opportunity to collect data that could be useful for personalisation. Perhaps this is why 80% of retailers say they are currently redefining their loyalty program.

A better way forward is to create shorter reward cycles and make redemption simple, so customers see the value of your program quickly. Even small perks like cashback or a free item can build momentum and encourage people to return to earn more.

If you’ve launched a loyalty program and want to know if it’s landing with your customer base, CRM Analytics can help. The software allows you to track participation rates in real time and monitor ROI. This means if you’re not seeing the uptake you expected, you can quickly pivot and continue to measure results.

MECCA, Australia’s largest beauty retailer, has built one of the country’s most loved loyalty programs, Beauty Loop. With more than 200,000 active members shopping both online and in-store, MECCA wanted to better connect data across channels to deliver personalised rewards and experiences.

Using Salesforce Loyalty Management, Marketing Cloud, and Commerce Cloud, they were able to connect their customer data and run an automated rewards system that reflects each member’s spend. The result has been a more personal loyalty experience, with omni-shoppers rising from 12% to over 30% in three years.

Surprisingly, we even saw 39% branching into healthcare. An example of this is the Chemist Warehouse , which has expanded beyond being a discount pharmacy into offering services like flu vaccinations and telehealth partnerships.

The challenge is credibility. Retailers need to choose services that make sense for their brand, as shoppers won’t engage with offers that feel forced or like a ‘cash-grab’. Instead, successful results come from building something that fits with what you already offer using your existing traffic, data, and network.

Revenue Cloud makes this process easier by supporting new models like subscriptions (think paid loyalty programs), paid media networks, or technology services alongside your existing business.

Shoppers now expect more convenience when it comes to receiving their packages. We can clearly see the start of this when Amazon entered Australia in 2017 and set the new standard with next-day delivery.

On top of this, options like curbside pickup, buy online pick up in-store (BOPIS), and same-day delivery are now standard practice for big retail businesses like Woolworths, Kmart , JB Hi-Fi, and Bunnings.

In our research, we found how prevalent these expectations are. Fifty-six per cent of shoppers bought online for in-store delivery, and 52% used BOPIS in the past year.

On the retailer side, we found that 59% of businesses now offer in-store returns, 54% offer curbside pickup, and 52% offer ship-from-store.

For retailers, this suggests that AI is now a normal part of how people live and shop, and customers will expect your brand to show up in those moments. That could mean personalised product advice, faster answers, or AI agents that speed up issue resolution.

Salesforce Data Cloud and Agentforce (our AI agent software) can give you the tools to make this possible, helping you connect with customers in the ways they are already using AI in their personal lives.

Like all data-driven practices, AI is only as good as the data it is trained on. In our research, retailers cited privacy, security, and data quality as their top challenges to scaling AI, with 74% increasing their investment in data management.

We found that shoppers won’t engage with AI if they feel their data isn’t safe, and retailers won’t see results if their systems are full of poor-quality data. Without a strong foundation, AI projects often fall flat or can even shake customer confidence.

The advantage is that very few retailers are doing this well, which means those who invest in unified, high-quality data pipelines with clear governance standards can pull ahead.

Our Data Cloud can help you get this advantage by unifying, cleaning, and securing your data across your CRM and beyond.

One great example of this in practice can be seen from Magentus, a healthcare technology company. They used Data Cloud with zero-copy integration to connect information from platforms like Databricks. This gave them a secure, unified customer view and cut customer wait times by 60%.

This creates a risk for retailers who invest too heavily in one channel, while the advantage goes to those who track performance and can shift their sales strategy as shopper habits change.

Tableau and CRM Analytics give retailers that visibility, making it easier to track evolving customer journeys and see where to adjust investments.

Gartner’s 2025 research reinforces this by projecting that, in 2026, three-quarters of organisations using generative AI will see major productivity gains. By 2027, they predict that half of all companies will have completely changed how they run and staff their operations, leading to savings and new revenue growth.

Agentforce makes it possible for businesses of all sizes (SMB to enterprise) to benefit from AI. A strong example of this can be seen from R.M.Williams, which used our AI tools to deliver better product recommendations both online and in-store. This lifted their conversion rates by 20% and grew revenue by 34%.