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Retail Tech Trends 2025: AI, AR, and Digital Twins Lead the Way

Retail tech in 2025 is driven by AI, AR/VR, and digital twins, helping brands personalize, optimize, and elevate the omnichannel shopping experience.

Immersive, Personalized, and Phygital Experiences Define the Future

Retail technology is entering a transformative phase in 2025, with innovations such as AI-powered personalization, AR/VR integration and digital twins reshaping how retailers operate and engage with shoppers. According to Accio, these tools are driving more immersive, efficient and customer-centric experiences across both digital and physical spaces.

Retailers like Walmart, Zara, Nike and Target are at the forefront of this shift, blending real-time data, automation and emerging tech to create highly personalized and seamless shopping environments.

AI-Powered Personalization and Dynamic Interactions

Artificial intelligence is enabling dynamic pricing, chatbots for real-time support and predictive demand forecasting. For example, Zara’s RFID-enabled kiosks and SPAR’s inventory accuracy systems illustrate how AI and IoT are converging to deliver on-the-spot personalization and operational precision.

Walmart’s AI-powered shopping cart is another standout, using real-time cart data to surface relevant promotions and transforming every shopping session into a curated experience.

AR/VR and the Rise of Experiential Retail

Augmented reality (AR) and virtual reality (VR) are no longer experimental – they are mainstream. Retailers like Nike and Tommy Hilfiger are using AR tools and platforms like Roblox to offer virtual try-ons, livestream shopping and branded metaverse experiences.

These technologies elevate “phygital” retail by merging physical products with digital interaction, increasing engagement and driving conversions, especially among younger, tech-savvy demographics.

Digital Twins and Supply Chain Optimization

Digital twin technology is enabling retailers to simulate store layouts, test supply chain changes and optimize logistics before implementation. Walmart is using digital twins to model warehouse operations, while IKEA applies them to track inventory performance and in-store flow.

These tools not only improve efficiency and responsiveness, but also support sustainability goals by reducing trial-and-error waste.

Meeting Shoppers Wherever They Are

Zendesk and Retail Dive both underscore the importance of meeting shoppers across multiple channels. From self-service kiosks and return process incentives to hyper-personalized outreach, the trend is clear: customer expectations are omnichannel and on-demand. Retailers who embrace this mindset are poised to thrive in 2025 and beyond.


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