Co-authored by Greta Brauer, Executive Manager, and Meghan Berger, Insights & Strategy Specialist Lead, Retail CPG
The 2026 NRF conference marked a defining evolution in retail strategy - one that moves far beyond simple digitization toward the era of Agentic Commerce. In this new paradigm, Artificial Intelligence is no longer a background tool for automation or efficiency. Rather, it’s an intelligent collaborator that amplifies human creativity, strengthens customer trust, and drives operational agility across every channel.
The conversation has shifted: the goal is not just to be faster or more efficient, but to build value, foster creativity, and deliver memorable human experiences. Below are the three key imperatives that define this next chapter in retail.
Retail’s discovery and engagement model is being rewritten. The era of keyword-based search is ending, giving rise to Generative Engine Optimization (GEO) and autonomous AI agents that shape the customer journey from intent to purchase.
Consumers are no longer typing “gold hoops”. They’re prompting, “show me professional, tidy jewelry for everyday wear”. These rich, contextual prompts require retailers to optimize their product data for Large Language Models (LLMs), ensuring AI assistants like ChatGPT, Google’s Gemini, or Anthropic’s Claude can accurately interpret, describe, and recommend products.
Forward-thinking brands like Sephora are already experimenting with generative assistants that interpret images or mood-based requests to create curated recommendations. In fashion, a shopper might upload a photo of a jacket, and the AI will instantly build a full outfit - checking real-time inventory, styling based on seasonality, and suggesting complementary products.
Agentic Commerce introduces the AI Shopping Co-Pilot: a system capable of orchestrating an entire end-to-end experience. Imagine an AI that:
Luxury brands like Tiffany & Co., Coach and LVMH see this not as automation, but augmentation. They leverage AI to scale creativity and deepen emotional connection.
With AI-driven recommendations, trust becomes the currency. Consumers increasingly expect brands to show the “why” behind an AI suggestion - why this item fits their intent, their profile, or their style. Transparency isn’t a compliance checkbox; it’s central to confidence and conversion. Retailers must treat explainability as part of the experience design, much like pricing or imagery.
Retailers are digitizing the “black book” approach. AI now predicts who to contact, when, and why, allowing associates to focus on authentic, relationship-based selling. Examples include:
Here, technology becomes “everywhere but visible nowhere”. It quietly empowers human associates, multiplying their impact and transforming every sales conversation into a personalized, creative, and memorable experience.
The convergence of physical and digital retail demands more than omnichannel - it requires a unified commerce strategy, where data, operations, and storytelling flow seamlessly across every touchpoint.
Marketplaces have evolved from being simple digital channels into strategic merchandising levers. Retailers use them to fill assortment gaps, test new categories, and enter new markets with minimal risk.
For instance, Target Plus and Macy’s Marketplace are now managed as core parts of the merchandising mix, not side projects. Success hinges on shared accountability between digital and buying teams, with common goals and automated Retail Media Networks (RMNs) that give agencies and buyers direct control of campaign data and ad inventory.
The future of unified commerce depends on high-fidelity data. Retailers like Anthropologie use RFID and digital twin technologies to track every product in real time, down to whether it’s sitting on a shelf or being tried on in a fitting room. This granular accuracy allows for dynamic messaging, connecting “add to cart” data with local store inventory. For example:
By treating inventory as content, retailers drive both digital-to-physical traffic and conversion, reducing waste and missed sales.
While innovation buzzwords abound (think AR mirrors, metaverse pop-ups, robotic fulfillment), leaders at NRF cautioned against “shiny object syndrome”. Technology must be invisible yet indispensable. Associates should spend less time troubleshooting devices and more time storytelling, styling, and selling. The physical store remains a theater for brand experience; AI simply manages the backstage.
In a volatile market shaped by inflation, evolving demographics, and cultural change, agility is survival. It’s the ability to adapt quickly without losing brand integrity.
The new retail planning model centers on reducing inventory, increasing speed to market, and cutting waste, all while empowering human planners. The challenge isn’t the system - it’s change management.
Retailers must invest in education and leadership buy-in so teams trust AI-driven models over spreadsheets. When properly deployed, these systems automate the mundane and free humans to focus on strategic and creative work, such as trend analysis, storytelling, and value creation.
Amid AI transformation, authenticity is non-negotiable. Brands like REI and Abercrombie anchor every innovation in purpose and transparency, ensuring new technology reinforces - not replaces - their core identity.
Retailers also must navigate macro shifts that are reshaping demand. The “GLP-1 effect” (the rise of weight-loss medications) is one example of this. Brands like Good American are leading the way by offering narrower, size-inclusive assortments that evolve with changing body types and consumer behavior.
Economic polarization continues: high-income consumers spend on luxury experiences, while middle-market shoppers trade down. This “K-shaped” dynamic reinforces the need for clear brand value propositions and flexible merchandising strategies. Luxury brands like LVMH are doubling down on craft, quality, and storytelling, while value brands are focusing on trust and reliability.
The future of retail belongs to those who are curious, not certain. In the era of Agentic Commerce, success belongs to brands that treat AI as a human multiplier and bake agility into their DNA. By shifting toward unified, merchandising-first models, these retailers do more than just sell - they evolve into experiential ecosystems. Here, technology doesn't replace the human touch; it amplifies it, turning every interaction into an opportunity for loyalty and delight.