The next era of retail isn’t just about digital transformation — it’s about connection. As expectations rise and operations get more complex, it’s time to rethink how stores communicate, collaborate and perform.

2026 is the year global retail IT spending is expected to reach $240.7 billion*, and the retailers leading the investment wave are building smart, responsive store ecosystems that unite people, data and devices in real time.

In this exclusive report, we unpack how department stores are navigating margin pressure, shifting consumer behaviors, and the rapid rise of AI in merchandising. Profitability is being redefined, reshaping retail’s future.     

The new playbook for retail profitability         

Uncover how retailers are evolving beyond cost-cutting to implement smarter strategies: optimizing product mix, mitigating inventory risk, and enhancing supply chain agility to safeguard margins and foster long-term growth.       

For stores in downtown shopping districts and suburban strip malls, AI shopping could be an opportunity to play to a merchant’s strengths. Agentic commerce — the concept of AI agents shopping for humans — is a hot topic, in part because of commercial opportunity amid uncontrollable uncertainty.

Shopping Experience

“Agentic commerce is accelerating a bifurcation we’re already seeing,” said Andrew Stern, CEO and co-founder of Quilt Software, which makes operational tools for independent retailers.

The most impactful retail tech developments this year aren’t flashy upgrades or abstract promises. They’re tools grounded in day-to-day problems: peak-hour chaos, employee safety, hidden losses, and inconsistent decision-making. Retail technology in 2025 is less about flash and more about function. The newest tools don’t just look smart but actually respond to real pressure points inside stores like inventory delays, staffing issues, fraud risks, and safety concerns.

Amid rising customer expectations for personalization, Walmart, Nordstrom Rack, Five Below and other innovative brands and retailers are creating experiences that adapt in real-time based on where a shopper is, not just who they are. Location is more than a data point — it’s a foundational signal that can be used at every touchpoint and stage of engagement.

From pre-visit engagement through building lifetime value, brands and retailers are boosting traffic, conversions and loyalty with location intelligence. In this retail playbook, learn how to use geolocation to create frictionless customer journeys that drive revenue.

In-person retail events are becoming more important than ever — and they’re more than just a way to hand out samples or drive short-term sales. As shoppers seek out in-person connections, don’t miss the moment to make your brand matter. When done right, these retail events, or “retailtainment” events, can create meaningful shopper touch points, fuel long-term brand loyalty and generate buzz both inside and outside the store.

If your mental image of Gen Z is a bunch of teenagers glued to their devices, you’re only half right: time has marched on, as it is wont to do, and the oldest members of Gen Z are now 28 years old, while the youngest members are turning 13 this year. And there are a lot of them — they already comprise nearly one-quarter of the total population.

Retail marketers, understandably, want to appeal to this large consumer set, with spending power that’s forecasted to reach $12 trillion by 2030, according to the National Retail Federation. Even before that, in 2029, they will overtake Baby Boomers in total generational spend, according to the 2024 Spend Z report from NielsenIQ.

Explore four key considerations reshaping how CPG marketers and grocers approach in-store advertising, consumer engagement and campaign ROI. CPG marketers are facing more complexity (and opportunity) than ever before. With the rise of grocery retail media networks , the store — once seen strictly as the point of sale — is emerging as one of the most influential, versatile and brand-safe media environments for CPG brands.