A structural shift is underway where consumers are more cost-conscious, with 4 in 10 demonstrating deal-driven behaviors. However, value is not solely about price, as up to 40% of consumers perceive value from non-price factors like quality, service, and experience.
Artificial intelligence is moving beyond experimental use cases and becoming a central operational tool. Retailers are already seeing 15-20% of referral traffic from AI chat, and over two-thirds plan to implement autonomous 'agentic AI' systems within the next two years.
Retailers are aggressively bringing marketing functions in-house, with 94% planning to do so, powered by AI. The primary goals are to leverage AI for hyper-personalization at scale and to increase the speed and relevance of customer engagement.
With 95% of executives expecting supply chain costs to rise, resilience has become the top priority. In response, two-thirds are prepared to restructure their supply chains through strategies like nearshoring, onshoring, and supplier diversification.
Despite anticipating rising costs, over 80% of retail executives are optimistic about expanding margins in 2026. This confidence is rooted in strategies focused on tighter cost controls, AI-driven pricing optimization, and a strategic shift towards higher-margin products.
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