Retail is all about change — and those who can adapt quickly will come out on top.
This simple truth captures the essence of today’s retail landscape.
And in this blog, we’ll explore the most exciting retail technology trends that are transforming the industry and solving some of its toughest problems.
Let’s get started.
These technology trends in the retail industry are more than innovations — they are strategic necessities for forward-thinking leaders.
Find out which trend resonates with your product vision for the future!
Statistics (source) that demonstrate the outcome that AR promises for the retail industry.
➡️ Only 16% of retailers use AR during sales.
➡️ AR can increase customer interaction rates by 20%.
➡️ AR can help retailers increase conversions by up to 40%.
➡️ Product presentation using the AR function has a 94% higher conversion rate than product presentation without AR.
➡️ 71% of consumers say they would shop more if they used AR.
Retailers like IKEA use AR apps to let customers visualize furniture in their spaces. This eliminates the need for physical samples, cutting costs and accelerating decision-making.
This retail technology trend is helping address some of the key challenges that the retail supply chain industry faces today.
✅ Increased transparency
✅ Faster transactions and lower operational costs
✅ Consumer trust
Walmart, for example, uses blockchain to trace food origins in seconds rather than days. This ensures trust and accountability, particularly in industries like pharmaceuticals and food retail.
AI models are reducing forecasting errors by analyzing sales patterns, weather data, and consumer behavior.
For example, Amazon has developed a unique model known as Probability Level (P-Level) Demand Forecasting.
This model provides vendors with insights into inventory levels needed based on calculated probabilities of weekly customer demand (e.g., P70 indicates a 70% probability that demand will not exceed a certain level).
“When we started the forecasting team at Amazon, we had ten people and no scientists,” says Ping Xu, forecasting science director within Amazon’s Supply Chain Optimization Technologies (SCOT) organization. “Today, we have close to 200 people on our team. The focus on scientific and technological innovation has been key in allowing us to draw an accurate estimate of the immense variability in future demand and make sure that customers are able to fulfill their shopping needs on Amazon.”
Imagine real-time insights into shelf gaps across hundreds of locations. Computer vision technology automates this process.
For example, Plainsight Vision AI uses smart computer vision to automate shelf management in retail.
It helps make inventory management simpler and more efficient, while also keeping shelves stocked and looking great.
As a result, customers find what they need, and stores stay on top of merchandising standards without the extra hassle.
This is one of the most exciting retail technology trends.
In fact, several organizations have effectively included voice commerce in their customer experience initiatives.
Take Domino’s Pizza, for example. They’ve allowed customers to place orders simply by saying, “Domino’s, I want pizza,” across multiple platforms.
This effortless voice command makes ordering faster and more convenient for customers.
Now, imagine bringing a similar system to the world of B2B retail.
Ordering supplies or placing bulk orders could be streamlined in a way that saves time, reduces mistakes, and makes the entire process more efficient.
This is where voice commerce truly delivers value — it simplifies and speeds up the entire process.
Another technology trend in the retail industry is IoT-powered warehousing.
With sensors, RFID tags, and smart cameras, businesses can track products as they move through the supply chain. Complementary tools like RFID scanners and smart cameras further enhance accuracy, minimize errors, and streamline operations.
For example, companies like DHL use IoT-enabled “smart glasses” to guide workers in real-time, improving picking accuracy and speed.
IoT also powers predictive maintenance, which helps avoid costly equipment breakdowns and minimizes downtime.
These advancements lead to faster fulfillment, optimized space, and lower operational costs.
Imagine having a real-time, virtual replica of your entire retail operation — your supply chain, store layouts, inventory flows, even customer behaviors — all within a digital space.
This is what digital twins offer: the ability to simulate, predict, and improve operations before making a single physical change.
Kroger, the largest grocery retailer in the United States, is using simulation and digital twins to reimagine the shopping experience in stores.
They’re using NVIDIA Omniverse and its new Isaac Sim features to construct a physically realistic digital version of a store. This will be synchronized in real-time with the physical store.
Kroger can employ physically realistic digital twins to simulate and visualize the greatest consumer shopping experience and give a quick and easy checkout.
Retail isn’t exempt from the personalization wave.
Companies like Sephora use AI to personalize recommendations for wholesale buyers, tailoring product suggestions based on purchasing history.
The race to speed up delivery times is intensifying, and this retail technology trend is leading the charge.
Drones and self-driving vehicles are transforming the logistics landscape, offering faster and more efficient ways to deliver goods.
Amazon Prime Air is a revolutionary new service that uses advanced drone technology to deliver packages directly to customers in 30 minutes or less.
With Prime Air, customers can receive their orders faster than ever before, with the added convenience of door-to-door delivery.
The application of data analytics has drastically transformed the retail business, allowing companies such as Target to become leaders in tailored marketing and consumer involvement.
Target’s creative strategy uses massive amounts of data to fine-tune marketing efforts, improve consumer experiences, and more effectively allocate resources.
Retail technology trends in 2025 are incomplete without Sustainability Tracking!
Platforms like EcoVadis make it easier by tracking and reporting sustainability metrics.
Meanwhile, cutting-edge technologies like blockchain and IoT are taking things to the next level, offering real-time, verifiable data about products and processes.
Take IBM’s Food Trust, for instance. It uses blockchain to trace food from farm to shelf, building trust while cutting down on waste.
And IoT-powered smart tags? They keep tabs on environmental conditions during transit, helping businesses keep products fresh and reduce spoilage.
It’s tech meeting sustainability in the most practical way.
Measuring the ROI of retail technologies requires a balanced view of both immediate outcomes and the broader transformation they enable.
Here’s a framework to evaluate ROI effectively and some practical insights to get started.
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