Retailers are preparing for a year of significant change, as experts forecast a transformation in how consumers engage with brands online and in physical stores in 2026. Predictions suggest major shifts across digital communications, artificial intelligence, social commerce, and the role of physical retail spaces.
Email evolution
Email, a long-standing channel for customer communications, is forecast to play a reduced role as more consumers and businesses move towards faster, real-time interactions.
Michelle Kelly, Retail Expert, 8x8, says:
"2026 is the year that email starts to pack its bags and head out the door for multiple reasons. One: a lot of customers prefer talking or texting on real-time messenger apps because it's quicker and more convenient. Two: email plays havoc with companies' handling times because email tennis can take days to resolve something that can be solved in three minutes via chat. Three: younger generations use email for basics like signing up to new platforms and prefer social channels for actual engagement and communication.
"So, it's not going away, especially as we still have considerably older demographics who still use it and prefer it, but it definitely is on a slowdown.
"I wouldn't be surprised to see a company declare that it doesn't do email for customer engagement in 2026."
AI-driven retail
Artificial intelligence is predicted to establish a more prominent role in customer engagement, evolving from basic chatbot support to acting as personal consultants for shoppers. New applications may enable customers to submit images and receive tailored recommendations on style or home design.
"You'll also see AI tech driving a lot more of the retail consultant and AI will evolve from chatbot to personal stylist and home designer, offering context-aware, image-based recommendations.
"For example, upload a picture of your house and ask for suggestions for redecoration. Going to an event? Upload a picture of yourself, tell the AI what event you are going to, where it is, what the weather is, what you normally wear and watch it come back with suggestions for what you can wear," said Kelly.
Growth of social commerce
The ongoing expansion of social commerce continues to alter retailer strategies. Brands are increasingly using platforms such as TikTok and Instagram to drive direct sales with integrated purchasing and entertainment-focused content.
"Social commerce is the juggernaut that will not stop and that places a considerably different set of challenges and demands on companies looking to keep those customers happy. People see something in a video or picture on a Monday and expect it delivered the same day or next day at worse.
"Retailers are turning social media into virtual shop floors, blending entertainment and commerce in what's fast becoming the era of 'Shoppertainment'. Platforms like TikTok and Instagram are no longer just brand awareness channels, they're full-funnel sales engines.
"By combining live, interactive content with AI-driven personalisation, retailers can create experiences that feel engaging rather than transactional. Delivering higher conversion rates, deeper brand loyalty, and a direct line to the next generation of digital-first shoppers. Look at how the best sellers on the likes of Whatnot are doing it. This is the direction retail is going," said Kelly.
Voice remains strong
While digital messaging and AI are growing, traditional voice communication continues to dominate for certain demographics.
"Despite new channels, voice remains the gold standard for trust-based customer service among older demographics. AI can still help here, but it's in supporting the human agents because not many AI can handle everything that a human customer can throw at them yet," said Kelly.
Physical attention
In brick-and-mortar spaces, brands are focusing on earning customer attention by providing meaningful and interactive experiences. Malls are being reframed as venues for discovery and entertainment rather than solely spaces for transactions.
Candice Mayer-Gillet, Managing Director, Westfield Rise, says:
"Attention has become a real form of currency, and in physical environments it is earned through meaning rather than noise. We are seeing malls step back into their role as cultural stages where people expect discovery, entertainment and connection. The most effective campaigns at Westfield London and Westfield Stratford City are those that create moments worth stopping for, rather than just showcasing a branded display.
"More online first brands are now using our spaces to bring their worlds to life in ways people can touch and take part in. As we observe dwell patterns, movement and interaction with greater accuracy, we see attention becoming a practical dataset that helps brands refine their experiences, rather than rely on assumption." Mayer-Gillet says.
"One of the most encouraging shifts is the rise of what we think of as good friction. These are the small moments of anticipation, play or reward that invite people in and give an experience character. They turn passersby into participants and often into customers whether they buy then and there or later on.
"In 2026, the most effective out of home and experiential work will be the kind that earns the time it asks for. The value exchange needs to be obvious: give us a moment of your attention and we will give you something worthwhile. With richer measurement across our environments, brands will be able to show that value clearly."