Predictions for retail in 2026

What’s changing in retail 2026 

Key trends from leaders at Paragon Global Brands 

2026 looks set to bring even more innovation across both the retail and supply chain industries thanks in no small part to the continuing growth of AI. Those who adapt to the latest developments in the technology (and its accompanying regulations of course) could win big, unlocking new pathways to improved customer experiences - and the commercial advantage to match. So, we asked some of our leaders at Paragon Global Brands to share where they think brands need to be looking to get ahead next year. 

Here’s what they had to say. 

AI led by human experience will differentiate retail brands 

“AI is reshaping what it means to be a fast and effective delivery partner. 2026 will see brands demanding a fusion of technology, global execution and resilience expertly led by human experience to deliver real commercial advantage.” - Alban Duchemin, Managing Director, Paragon Global Brands

Alban predicts that AI will change the goalposts across retail, setting new standards this year - with success hinging on its adoption. Alban explains: 

“In 2026 AI will define what “fast” means - from client interactions to creative delivery and time-to-impact across all channels. As the new AI-fuelled competitive landscape unfolds, the gap between “AI-enabled” organisations and those that are “AI-lagging” will widen dramatically and we will see a new wave of players emerge with AI-native models that re-define what’s possible and by when, that will shake up the current status quo.” 

Now, this doesn’t mean you need to rip up the rule book and replace everything with AI. Human experience, and human leadership is vital in creating solutions that truly address the challenges facing retail today. AI can crunch all the data it wants, but it can’t compete with the knowledge gathered from spending time in stores and delivery hubs, and all the nuance this reveals - well, not yet at least!  As Alban puts it: 

“Delivery partners need to explore how they look at customer challenges in a very different way today. The beauty of AI is you can start by assuming that almost anything is possible and collaborate on a solution from there. What will be essential is that brands experience an evolving value-based relationship with their delivery partner that goes beyond efficiency metrics to help feed their growth ambitions. AI won’t disrupt long-standing, trusted partnerships as long as new opportunities unfold that address a brands’ core business needs in an authentic way. 

Scalable, tech-led approaches will be vital alongside harnessing the very human experience that sets a partner apart from the competition. AI can’t match the nuances of global market operational delivery that an experienced team can navigate, and it is here that human value will become the multiplier of AI, where teams can marry the speed it brings with knowledge, insight and creativity in a way that mirrors a brand's ambition.”

Developing and harnessing AI built for the unique world of retail

“2026 will mark the shift from AI experimentation to intelligent systems purpose-built for retail - delivering insight with tangible ROI, from reducing waste to creating more meaningful connections between brands and consumers.” - John Price, Growth and Innovation Director 

For John, 2026 will be the year AI in retail truly comes into its own. While recent years have been defined by experimentation and proof-of-concepts, that period of trial is now giving way to more mature, integrated solutions designed to operate at scale and with real impact. As John explains: 

“2026 is when AI and data-led tools move beyond experimentation and become embedded within connected retail ecosystems,” says John. “We’re shifting away from disconnected siloed solutions towards interoperable, intelligent systems that support the full retail lifecycle - from design and execution through to measurement and optimisation.”

This shift is already reflected in the evolution of Paragon’s RetailOS platform, which has been designed to connect the physical and digital elements of retail into a single, intelligent operating environment. Rather than solving isolated problems, RetailOS brings together data, insights and automation to help brands and retailers gain clearer visibility, make faster decisions and deliver more consistent execution across markets.

An integrated approach like this will become essential, and the brands that will thrive in this new landscape will be those that embrace it and that can translate insight into action.

“The real advantage comes when intelligence is operationalised,” says John. “That means using data and insight to actively inform how marketing is produced, deployed and optimised - not just reported on after the fact.”

This is where Paragon plays a critical role, helping brands implement innovation in ways that address their specific challenges and opportunities, rather than delivering technology in isolation.

As part of this evolution, digital displays and in-store media environments are becoming increasingly intelligent and adaptive. Digital touchpoints are moving beyond static messaging, responding instead to context, timing and customer behaviour.

“We’re seeing rapid acceleration in intelligent in-store and retail media environments,” John notes. “These spaces allow brands to connect with customers through more relevant, personalised experiences - whether that’s dynamic content triggered by external factors or media placements directly linked to verified performance outcomes.”

Supported by integrated analytics, these environments give brands and retailers clearer insight into what drives engagement and sales, and how physical retail can perform with the same accountability as digital channels.

Ultimately, as the industry moves into 2026, it will become clear that AI in retail is no longer about experimentation or novelty. It is about building connected, intelligent systems that link insight to execution and deliver measurable value.

“The future of retail is intelligent, connected and measurable,” John concludes. “Platforms like RetailOS are designed to support that future - creating environments where brands and retailers can work smarter together and deliver better outcomes for customers.”

Ensuring AI is built not just for retail, but for legislation and resilience too 

“Against a challenging backdrop, 2026 needs to be a year of rapid execution with a laser focus on product value messaging and legislation resilience” - Mehdi Bousetta, Chief Client Officer

The potential for AI in retail is immense, but it shouldn’t overshadow regulation and resilience. It might be less exciting to talk about, but it’s just as vital. While it’s tempting to go full steam ahead and race towards these exciting applications of AI, we need to do so at a reasonable pace, and with a solid plan to follow. As Mehdi explains:

“2025 was a year of strategic recalibration. AI reshaped expectations, budgets tightened, and brands reassessed where they truly create value. As we move into 2026, momentum will shift from exploration to decisive execution — and the brands that succeed will be those able to convert clarity of strategy into operational reality.”

But what does that mean? Well, it means focusing AI use not just on the ‘coolest’ applications, but those that actually deliver the most value. Pockets are only getting tighter, for both businesses and consumers, and these tools need to showcase not just efficiencies for brands, but also tangible results for customers that keep them coming back. As Mehdi predicts: 

“We expect to see increased investment in tools that sharpen forecasting, accelerate decision-making and strengthen in-store performance — backed by teams trained to use them with confidence. But this acceleration will sit against continued consumer budget pressure, driving a heightened focus on value communication and trust-building. Brands will need to justify premium positioning in the eye of the consumer more explicitly as price rises become unavoidable. A product’s value must be articulated clearly and consistently across physical and digital touchpoints, with personalised experiences used to sustain and strengthen loyalty where it still exists.”

And if that’s not enough to consider, there’s also the wider picture of regulation and compliance. Legislation is catching up with AI, asking for new safeguards on its use of data, and eyes are increasingly turning to its sustainability impact. As Mehdi puts it:

“Alongside this commercial pressure, sustainability and compliance expectations will intensify. New regulations on packaging, waste, and production transparency will force brands to balance creativity with practical, regulation-ready solutions. Resilience will matter as much as inspiration — with partners expected to bring measurable environmental progress, continuity across markets, and operational reliability.”

To sum it up, Mehdi believes success in 2026 will demand a careful balance between faster time to market executions, disciplined operations, enhanced offline meets online solutions, AI-enabled decision making, regulatory fluency, and a clear articulation of product value that customers can trust.

We’ve just come through several years of transformation in retail, and it won’t be slowing down at all next year as AI reaches maturity in the sector. At Paragon Global Brands, we’re ready - and excited - to embrace this opportunity. Are you?