Retail 2026 : A Deep Dive for CEOs By Martin Bailie CEO & Founder MWB Advisory
“The future of retail isn't about adapting to change—it's about operationalising disruption. We've synthesised the key strategic pillars defining success for retailers in 2026. This is the new playbook for profitable, customer-centric growth.”
Martin Bailie
1. The Global Landscape: Managing Volatility
The 2026 environment is complex, requiring strategic agility:
- Economic Caution: Spending is intentional. Consumers demand that every purchase earns its place, making margin protection and cost discipline non-negotiable CEO priorities.
- ESG is Table Stakes: Sustainability is a board-level imperative, driven by Gen Z and regulatory pressure. The focus shifts to radical transparency in the supply chain to verify ethical claims.
- Store Transition: Physical locations are moving from transactional to experiential hubs. Capital must be reallocated to “phygital” flagship stores that strengthen brand connection.
- Cybersecurity as Frontline: With hyper-connected systems (IoT, AI), data protection moves beyond IT to become a core trust-building strategy, requiring next-generation cybersecurity investments.
2. The 2026 Customer Mega Trends
The customer is more demanding than ever, seeking relevance and speed:
- The Ambient Shopper: Omnichannel is dead; the standard is Ambient Shopping. Customers expect seamless, embedded experiences everywhere (mobile, social, voice).
- Hyper-Personalisation is a Right: Simple personalisation is ignored. Retailers must achieve prescriptive personalisation—AI-driven actions that anticipate needs before the customer realises them.
- The Value Equation: Brand loyalty is fragile. Customers are highly price-conscious, fueling the rapid growth and sophistication of high-quality own-brand products.
- Wellness & Waste: A strong consumer focus on health and sustainability drives demand for preventative products and for brands that demonstrate active reduction of food and packaging waste.
- Priceless Connections: Counteracting digital fatigue, there is a clear demand for authentic community and human connection. Stores are the key vehicle for delivering this.
3. Emerging Tech & Operational ROI
The focus is on operationalising technology, not just experimenting:
- Agentic AI & Execution: This is the game-changer. AI assistants don’t just provide insight; they autonomously generate and assign frontline tasks (e.g., “Manager: Re-merchandise aisle 5 now”) to close the “execution gap.”
- Retail Media Networks (RMNs): Retailers are becoming media moguls, using their transaction data to create massive, high-margin ad platforms on their digital and physical properties.
- Practical AR: Augmented Reality shifts to utility—virtual try-ons, 3D product visualisation, and AR overlays for store associates to check stock in real-time.
- Edge Computing & IoT: Processing data at the store level enables instantaneous stock updates and powers the frictionless, sensor-driven smart checkouts, connected store technology.
- Voice Commerce: Conversational AI now handles routine, utility-based transactions (like re-ordering groceries), making it a critical frictionless channel.
4. The CEO’s 2026 Execution Strategy
Success favours the leader who can achieve flawless execution at speed.
- Master the Execution Gap: The #1 challenge. CEOs must invest in tools and systems that ensure the strategy on the board’s whiteboard is translated into high-ROI action on the shop floor.
- Dual Store Focus: Implement a disciplined capital allocation plan: one track for experiential flagships and a separate track for automated, efficient core stores.
- Talent Empowerment: Your people are your greatest asset. Adopt technology that empowers associates, simplifying their jobs and enabling them to deliver the human connections customers seek, rather than simply replacing them.
What is your organisation prioritising for its 2026 budget: RMN build-out, or Agentic AI for store operations? Let’s discuss MWB Advisory
