Experience, Scale, and AI: 

Global retail is not only continuing to evolve consistently, but is undergoing a fundamental transformation – driven by rapidly rising consumer expectations regarding shopping channels, processes, and standards for experience and availability. Consumers have long expected more than just a good product; they want seamless, disruption-free processes across a constantly growing network of touchpoints. Every interaction in the shopping process directly influences the perception of a company – and every inconsistency increases the risk of losing customers to the competition. Social commerce^[i], ultra-fast delivery, and predictive personalization are no longer optional today, but key prerequisites for remaining relevant in markets where convenience and positive shopping experiences shape loyalty.

For retailers, as well as manufacturers with direct sales, the focus is now more on orchestrating an ecosystem of positive shopping experiences and touchpoints beyond simply selling products. Those who want to retain their customers over the long term should understand the shift in customer expectations and offer holistic shopping experiences that include high-quality products, personalized services, and positive emotional moments of connection.

In the area of technology and durable goods, reliability and care are just as important as the device itself. On-time delivery (24%), installation by qualified professionals, and proactive maintenance have become decisive differentiators. Consumers expect seamless post-purchase support (10%), flexible payment options (8%), and loyalty programs (2%) that reward their engagement. The discovery of new products has expanded to platforms such as TikTok and Instagram, where AR try-ons, influencer recommendations, and one-click checkout shorten the path to purchase to just a few minutes.

The historical model of gradual growth through store expansion is collapsing under the weight of global, predominantly virtual market players and new cross-border sales opportunities. “Chinese marketplaces such as Temu and AliExpress are rewriting the rules of commerce by combining affordability with speed and choice. As reservations continue to diminish, these platforms can be expected to move beyond accessories and small tech items into mainstream categories and redefine global shopping behavior,” explains Namrata Gotarne, Director Global Strategic Insights at NIQ.

Scaling is now being driven by digital acceleration. Online channels have become the global growth engine for technology and durable goods, recording growth of 8% from January to September 2025 compared with the same period in 2024, while offline channels achieved growth of only 3%. This shift underscores the urgency for retailers to master digital ecosystems, optimize visibility in search engines and AI models, and invest in event-driven campaigns that capture demand in real time.

Artificial intelligence is rapidly becoming the indispensable operating system of retail. Its potential extends across the entire value chain, from hyper-personalization that predicts needs to AI-based automation that adapts inventory management and delivery to the necessary circumstances in real time.

Retailers can automate inventory checks, forecast demand precisely, and create new and individual shopping experiences through AR, VR, and conversational AI. These capabilities not only improve efficiency, but also redefine engagement and convenience and promote new revenue streams such as retail media networks and dynamic pricing engines.

Companies must go beyond the mere processing of transactions and instead orchestrate holistic shopping experiences. This requires targeted investment in new and constantly evolving technologies such as AR and conversational AI, in loyalty ecosystems, and in service layers that develop simplification and convenience into genuine differentiation. Experience design^[ii] should become a board-level priority. At the same time, companies must achieve economies of scale through technology-enabled agility by accelerating AI-driven forecasting, dynamic pricing, and automated order fulfillment. Robotics and predictive AI-based analytics help reduce costs and significantly increase reliability.

Preparing for an era of AI-integrated commerce is equally crucial: product catalogs, pricing modules, and loyalty programs must be customer-service-oriented in order to integrate seamlessly with AI platforms and voice assistants. Competition for digital, algorithmic visibility will become just as important as traditional shelf presence. Finally, trust must be treated as a strategic advantage. This means developing AI systems that explain decisions transparently, meet legal requirements, and align automation with human empathy. Trust is the currency that promotes acceptance and drives long-term growth.

[1] gfknewron Consumer; What are the main reasons you decided to buy from that retailer? Period: Q2 2024 – Q1 2025
[2] NIQ Market Intelligence, Retailer Channel, International Coverage
[3] NIQ Consumer Outlook 2025

[i] Social commerce describes the shopping process that is initiated based on recommendations by influencers on social media platforms such as TikTok, Instagram, and others.
[ii] Experience design describes the development of a holistically orchestrated shopping experience process