While we were right that retailers would offer richer in-store experiences to attract shoppers, we were wrong about how Amazon, discount retailers, and dollar stores would evolve their physical and digital strategies.

From AI tools that stayed online to unfulfilled marketplace ambitions, here’s how we did with our 2025 predictions.

Prediction: More retailers will offer free customized experiences like in-store styling to increase foot traffic

Outcome: Correct

To boost foot traffic, retailers like Bath & Body Works, David’s Bridal, and Coach added in-store elements to engage and add value for shoppers.

• Bath & Body Works’ Gingham+ store concept has scent bars for testing candles, fragrance mists, and other products.
• David’s Bridal debuted its tech-powered Diamonds & Pearls store, featuring personal styling, champagne service, and alterations.
• Coach opened its fourth Coach Coffee Shop, hoping to provide an affordable entry point for younger consumers and increase dwell time.

The 2026 takeaway: Retailers will keep elevating their stores with experiential elements, blending digital touchpoints to create a seamless omnichannel journey.

• 88% of consumers say it's easy to remember physical store experiences that go out of their way to engage customers, according to data from Quad.
• Digital in-store elements are important to younger consumers in particular, with 78% of Gen Z and millennials saying they appreciate when brands add digital touchpoints to enhance physical shopping, found the same data.

Prediction: Amazon will bring Rufus in-store

Outcome: Incorrect

Amazon has yet to integrate its AI-powered chatbot, Rufus, into its physical locations. However, the retailer made several tweaks to its physical strategy this year.

• Amazon finally moved to integrate Whole Foods into its core business and closed several more Amazon Fresh stores in the US and UK.
• The ecommerce giant is also experimenting with different formats, including a micro-fulfillment center attached to a Whole Foods in Pennsylvania and a two-level store in Chicago that combines Amazon Grocery and Whole Foods products.

The 2026 takeaway: Amazon is still figuring out how to integrate its digital know-how into brick-and-mortar settings, but it’s optimistic about AI-driven tools that could enhance the shopping journey, including for in-store shoppers.

• Amazon introduced agentic capabilities to Rufus ahead of the holiday season, enabling shoppers to ask Rufus to monitor products and purchase when an item reaches a target price or discount level.
• The company also rolled out a Help Me Decide feature that analyzes browsing activity, searches, purchase history, and preferences to recommend the right product.

Prediction: Discount retailers struggle to retain grocery customers

Outcome: Incorrect

Thanks to growing adoption among middle- and high-income shoppers, many discount retailers saw sales increase even as consumers overall were pulling back.

• Much of this sales growth is driven by higher prices rather than increased foot traffic.
• Still, Dollar Tree, Dollar General, and Five Below boosted their full year outlooks in Q3, and discount and dollar stores were among the few retail categories that consistently grew their in-store visits in 2025, according to Placer.ai.

The 2026 takeaway: Consumers will remain value-driven in the new year, putting even greater pressure on retailers to retain loyal customers. Higher-income consumers will benefit dollar and discount stores, but for many other retailers, the spending slowdown may get worse.

Prediction: Dollar stores launch third-party marketplaces to stay competitive

Outcome: Incorrect

While Ulta and Best Buy launched marketplaces this year, no dollar stores followed suit.

• Dollar stores have traditionally focused on tightly curated assortments and rapid in-store turnover, leaving less incentive to experiment with broader third-party marketplaces.
• Expanding into a marketplace model would also require significant investments in technology, logistics, and seller management—areas where dollar retailers have historically underinvested.

The 2026 takeaway: Discount retailers must balance their low-cost model with selective digital upgrades that enhance convenience and value.

• One likely avenue is in-store retail media, which offers a new source of additional revenue.
• US in-store retail media ad spend will grow by 32.8% in 2026 to reach $550 million, according to a September EMARKETER forecast.

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