The retail sector is undergoing a significant transformation towards becoming more digital, social, and connected, as highlighted in Salesforce’s latest “Connected Shoppers” report. One of the major drivers of this evolution is agentic AI, with 75% of retailers predicting that AI agents will be essential by 2026.
However, AI agents are just one aspect of the changing retail landscape. Physical stores are now being reimagined as experience hubs and fulfillment centers that seamlessly integrate digital channels, social platforms, and physical shopping journeys. While shoppers anticipate that 41% of their purchases will come from physical stores in 2026, down from 45% in 2024, retailers are enhancing their store offerings to provide elevated retail experiences. More than half of retailers now provide in-store services like customization and repairs, while 46% offer dedicated spaces for events and community gatherings.
As retail locations transform, the roles of store associates are also evolving. Traditional checkout duties now only occupy 28% of retail workers’ time, with responsibilities such as store operations, customer service, and fulfillment activities taking precedence. Retail associates are facing increased technological complexity, with the average associate needing to master 16 different systems daily, up from 12 in 2023. AI, especially agentic AI, is expected to alleviate the burden on retail associates by providing easy access to information and handling tasks independently.
Despite the opportunities presented by AI, the report also highlights challenges in its implementation, including high operational costs and disconnected systems that hinder progress. Only 17% of store associates have access to a unified view of customer data, showcasing the impact of disconnected technology. However, retailers remain optimistic about the benefits of AI, with 89% expecting returns on their AI investments and reporting increased online sales volume and reduced operational costs.
In response to changing consumer behavior, retailers are reimagining loyalty programs and focusing on social shopping. Loyalty programs are becoming increasingly important in maintaining customer loyalty, with 84% of members stating that such programs make them more likely to repurchase. Additionally, social shopping is on the rise, with over half of shoppers discovering products on social platforms. Gen Z consumers, in particular, value exclusive experiences and are more likely to engage in social commerce activities.
The findings from the sixth edition of the “Connected Shoppers” report are based on a survey of 8,350 shoppers and 1,700 retail industry decision-makers from 21 countries across five continents. The data, collected from November 27 to December 26, 2024, provide valuable insights into the evolving retail landscape and the opportunities and challenges presented by AI, loyalty programs, and social shopping.