WEBVTT 1 00:00:06.110 --> 00:00:08.710 The retail industry is changing fast. 2 00:00:08.890 --> 00:00:11.390 In 2026, it could be a defining year. 3 00:00:11.830 --> 00:00:14.190 To learn more about what’s ahead, we surveyed 4 00:00:14.190 --> 00:00:17.030 more than 300 global executives at large retail 5 00:00:17.030 --> 00:00:17.530 companies. 6 00:00:17.950 --> 00:00:20.390 Here are the five takeaways from Deloitte’s Retail 7 00:00:20.390 --> 00:00:21.310 Industry Outlook. 8 00:00:21.590 --> 00:00:25.270 First, consumers are rewriting the meaning of value. 9 00:00:25.830 --> 00:00:28.430 Deloitte data shows 4 in 10 US 10 00:00:28.650 --> 00:00:32.070 consumers now demonstrate deal-driven or cost-conscious 11 00:00:32.070 --> 00:00:32.650 behaviors. 12 00:00:33.230 --> 00:00:36.350 Things like purchasing lower-priced alternative ingredients or 13 00:00:36.350 --> 00:00:38.510 switching to private label or store brands. 14 00:00:39.230 --> 00:00:41.730 Nearly 70% of the retail executives we 15 00:00:41.730 --> 00:00:44.590 surveyed believe this is a structural shift, not 16 00:00:44.590 --> 00:00:47.230 a short-term reaction to inflation, and it’s 17 00:00:47.230 --> 00:00:49.490 important to remember that value isn’t only about 18 00:00:49.490 --> 00:00:49.910 price. 19 00:00:50.170 --> 00:00:52.750 In fact, in our value-seeking research shows 20 00:00:52.750 --> 00:00:55.330 up to 40% of consumers’ perceived value 21 00:00:55.330 --> 00:00:58.610 comes from other factors like quality, service, and 22 00:00:58.610 --> 00:00:59.090 experience. 23 00:00:59.570 --> 00:01:02.210 So, for retailers, there’s still plenty of opportunity 24 00:01:02.210 --> 00:01:02.970 to stand out. 25 00:01:03.650 --> 00:01:06.370 Second, AI is moving from pilot mode to 26 00:01:06.370 --> 00:01:06.950 prime time. 27 00:01:07.410 --> 00:01:10.530 Today, many retailers are using AI for tasks 28 00:01:10.530 --> 00:01:13.250 like pricing, forecasting, and customer service. 29 00:01:13.630 --> 00:01:16.230 At the same time, customers are changing their 30 00:01:16.230 --> 00:01:16.650 behavior. 31 00:01:16.650 --> 00:01:19.510 Many retailers in our survey reported they are 32 00:01:19.510 --> 00:01:22.190 now seeing 15% to 20% of their referral 33 00:01:22.190 --> 00:01:24.890 traffic coming from AI chat interfaces. 34 00:01:25.510 --> 00:01:27.790 More shoppers are turning to AI to discover 35 00:01:27.790 --> 00:01:29.370 brands and make their choices. 36 00:01:30.050 --> 00:01:32.830 Looking ahead, the next leap is likely agentic 37 00:01:32.830 --> 00:01:36.510 AI, AI that can act autonomously, making decisions 38 00:01:36.510 --> 00:01:39.110 on its own rather than just analyzing data 39 00:01:39.110 --> 00:01:40.350 or making recommendations. 40 00:01:41.150 --> 00:01:44.270 Sixty-eight percent of the retail executives we surveyed 41 00:01:44.270 --> 00:01:47.090 say they expect to implement agentic AI systems 42 00:01:47.090 --> 00:01:49.170 in the next 12 to 24 months. 43 00:01:49.850 --> 00:01:53.470 Third, marketing and customer experience are getting an 44 00:01:53.470 --> 00:01:54.290 AI glow-up. 45 00:01:55.120 --> 00:01:56.630 Retailers are retooling fast. 46 00:01:56.950 --> 00:02:00.430 Sixty-seven percent of the executives we surveyed expect 47 00:02:00.430 --> 00:02:04.310 to implement AI-driven personalization capabilities within the 48 00:02:04.310 --> 00:02:07.410 next year, and 94% plan to bring 49 00:02:07.410 --> 00:02:10.490 more marketing activities in-house, powered by AI. 50 00:02:11.030 --> 00:02:14.010 The goal is simple: move faster, personalize at 51 00:02:14.010 --> 00:02:16.430 scale, and meet customers with the right message 52 00:02:16.430 --> 00:02:17.390 at the right moment. 53 00:02:18.190 --> 00:02:21.530 Fourth, supply chains are transforming for a world 54 00:02:21.530 --> 00:02:22.930 that’s anything but predictable. 55 00:02:23.570 --> 00:02:25.090 Resilience is the priority. 56 00:02:25.850 --> 00:02:29.210 Nearly every executive we surveyed, 95% say 57 00:02:29.210 --> 00:02:32.070 they expect costs to rise in 2026, and 58 00:02:32.070 --> 00:02:34.330 two-thirds say they’re prepared to restructure their 59 00:02:34.330 --> 00:02:37.250 supply chains through near-shoring, on-shoring, and 60 00:02:37.250 --> 00:02:40.070 supplier diversification if pressures increase. 61 00:02:40.650 --> 00:02:42.790 AI is playing a role here too, helping 62 00:02:42.790 --> 00:02:45.530 retailers get better at forecasting demand and keeping 63 00:02:45.530 --> 00:02:47.370 a closer eye on their supply chains. 64 00:02:47.990 --> 00:02:50.910 And fifth, financial fortitude is in the spotlight. 65 00:02:51.430 --> 00:02:54.270 Despite cost pressures, leaders do remain optimistic. 66 00:02:55.170 --> 00:02:57.790 More than 80% of executives expect margins 67 00:02:57.790 --> 00:02:59.550 to expand in 2026. 68 00:02:59.890 --> 00:03:00.850 What’s driving that? 69 00:03:01.310 --> 00:03:03.990 Tighter cost control, smarter pricing, and a shift 70 00:03:03.990 --> 00:03:05.550 toward higher-margin products. 71 00:03:05.860 --> 00:03:07.970 It’s all about focusing on what you can 72 00:03:07.970 --> 00:03:10.630 control, and doing it with real precision. 73 00:03:11.130 --> 00:03:12.350 So what’s the big picture? 74 00:03:12.930 --> 00:03:14.570 Retail fundamentals still matter. 75 00:03:15.030 --> 00:03:19.090 Customer centricity, operational excellence, and financial discipline, for 76 00:03:19.090 --> 00:03:19.490 example. 77 00:03:19.830 --> 00:03:22.370 But 2026 will reward adaptability. 78 00:03:22.890 --> 00:03:25.130 The retailers that win won’t just react to 79 00:03:25.130 --> 00:03:28.030 change, they’ll use AI, data, and insight to 80 00:03:28.030 --> 00:03:30.810 elevate the fundamentals and meet consumers with real 81 00:03:30.810 --> 00:03:31.230 value. 82 00:03:31.230 --> 00:03:34.630 Yes, the road ahead has its challenges, but 83 00:03:34.630 --> 00:03:36.350 there’s also a world of opportunity. 84 00:03:36.870 --> 00:03:39.910 For retailers willing to adapt, 2026 can be 85 00:03:39.910 --> 00:03:42.350 a year to move forward, not stand still.