2026
9
US State of Retail and eCommerce: 2026
2026-03-05T10:02:19+00:00
REPE46A7728_A816_404A_AA77_28A816C04ADC
4995
191747
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Report
en_GB
Valued at $7.8 trillion in 2026, the US retail market continues to demonstrate resilience despite economic challenges like inflation and tariffs that curb discretionary spending. The market is projected to…
US
Retail
eCommerce
simple

US State of Retail and eCommerce: 2026

"As economic pressures intensify and consumer expectations evolve, retailers that lead with transparency and align with emerging values will strengthen trust and loyalty."

Brittany Steiger, Principal Analyst - Retail & eCommerce

Brittany Steiger, Principal Analyst - Retail & eCommerce

Valued at $7.8 trillion in 2026, the US retail market continues to demonstrate resilience despite economic challenges like inflation and tariffs that curb discretionary spending. The market is projected to grow steadily at an annual rate of 3%, reaching $8.6 trillion by 2030, with ecommerce capturing an increasingly significant share.

Key trends shaping the industry in 2026 include the rising influence of digital transformation and AI, alongside a consumer shift toward value-driven retail models in response to economic pressures. Trust and transparency remain essential for fostering customer loyalty, pushing brands and retailers to clearly communicate their value propositions and uphold strong, authentic values.

The adoption of AI presents vast opportunities to elevate the shopping experience, enabling brands to personalize services and streamline operations. However, maintaining transparency in data usage and fostering consumer trust is critical. Despite digital advancements, the demand for human connection and in-person shopping experiences persists, emphasizing the need for a balanced approach that prioritizes service, authenticity, and trust.

This report looks at the following areas:

  • Impact of economic pressures and tariffs on consumer spending
  • Market size and forecast for US retail and ecommerce
  • Role of trust, loyalty and corporate social responsibility in retail
  • Digital transformation and use of AI in retail and ecommerce
  • Shifts in consumer behavior and purchase priorities
  • Predictions, trends and opportunities for retail in 2026
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  1. EXECUTIVE SUMMARY

    • What you need to know
    • Outlook for retail & ecommerce
    • 2026 predictions
    • A new era of hyper-personalized offer messaging
    • Consumers will seek genuine connections over traditional loyalty programs
    • AI will redefine service with convenience and personalization
  2. THE MARKET

    • Snapshot – market size and forecast
    • Market drivers and context
    • Mounting economic pressures test consumer spending
    • Graph 1: change in financial situation over the past 12 months, 2024-25
    • Key indicators to watch
    • Retail layoffs surged in 2025
    • AI evolution pushes innovation at retail
    • Changing legislation and regulations will require retailers to balance innovation with risk mitigation
    • Market size and forecast
    • Steady growth ahead despite market pressures
    • Market size and forecast for retail and ecommerce
    • Graph 2: total retail sales and fan chart forecast (including ecommerce), at current prices, 2019-30
    • Total retail sales and forecast, including ecommerce, 2019-30
    • Continued growth for ecommerce, even as the engine slows
    • Graph 3: total ecommerce sales and fan chart forecast, at current prices, 2019-30
    • eCommerce sales and forecast, 2019-30
  3. THE RETAIL LANDSCAPE

    • Economic pressures and consumer resilience
    • Inflation and tariffs raise the stakes for brands to prove their value
    • Graph 4: impact of financial and supply chain concerns on consumers’ shopping habits, 2025
    • Rising tariffs fuel uncertainty and diminish trust
    • Economic impacts reinforce conflicting realities
    • Graph 5: significant impact of economic pressures on shopping habits, by financial situation, 2025
    • Purchase priorities
    • Purchases trended down as consumers continue to prioritize essentials
    • Graph 6: categories purchased in the last 12 months, versus YA, 2025
    • Spending priorities are shifting to major upgrades
    • Graph 7: 2026 spending priorities compared to 2025
    • Building relevance across generations
    • Graph 8: categories purchased in the past 12 months, by age, 2025
    • Retailer performance
    • Consolidation in large retailers persists as shoppers seek value
    • Graph 9: retailers shopped during the past 12 months, either in-store or online, 2025
    • Value-conscious habits are re-shaping the retail landscape
    • The evolution of ecommerce and omnichannel
    • Mobile commerce is now the norm across generations
    • Graph 10: devices used for online shopping, 2025
    • eCommerce wins on convenience and value, while stores deliver enjoyable experiences
    • What to expect moving forward
  4. CONSUMER MINDSET & VALUES

    • Redefining value
    • Practical value wins with shoppers, though perceptions of value are multi-dimensional
    • Graph 11: important factors in deciding where to shop, 2025
    • Monetary value has become table stakes
    • Consumers remain loyal to price
    • Emotional value resonates with Gen Zs and Millennials
    • Graph 12: importance of emotional value, by generation, 2026
    • Graph 13: attitudes toward emotional value, by generation, 2026
    • How brands and retailers can deliver incremental, multi-dimensional value
    • Trust and transparency
    • Trust is not a perk – it’s a prerequisite
    • Graph 14: attitudes toward trust – any agree, by gender and age, 2025
    • Sincerely Yours fosters confidence and trust among both teens and parents
    • Trust needs to be earned, not expected
    • Graph 15: important factors in a retail relationship, 2025
    • Consumers want to be heard
    • REI highlights the value of its store associates in the age of AI
    • Loyalty in the age of choice
    • Consumers expect more for their patronage
    • Build loyalty beyond the checkout
    • Corporate social responsibility
    • Evolving values shape consumer choices and loyalty
    • Graph 16: attitudes toward CSR – any agree, by race or ethnicity, 2025
    • When brand values and consumer morals align
    • What it means
  5. THE TECHNOLOGY REVOLUTION

    • Balancing innovation with privacy
    • Tech is now the default interface for shopping – online and in-store
    • Graph 17: tech used while shopping online or in-store, 2025
    • Younger consumers drive the tech revolution in retail
    • Graph 18: tech used while shopping online or in-store, by generation, 2025
    • Instacart’s Caper Carts are transforming the omnichannel experience
    • Trust remains the biggest barrier to tech adoption…
    • Graph 19: attitudes toward tech at retail, 2025
    • …and bridges generations
    • Graph 20: attitudes towards tech at retail – any agree, by generation, 2025
    • Showing practical value can drive meaningful AI use
    • Shoppers are cautiously optimistic, expecting helpful enhancements, not radical reinvention
    • Consumers first want AI to deliver practical, money-saving value…
    • Graph 21: desired retail improvements via AI, 2025
    • …but younger consumers know AI can go beyond basic offerings
    • Graph 22: desired retail improvements via AI, by generation, 2025
    • The Vitamin Shoppe’s Innovation Store taps into AI to be a partner for shoppers
    • Albertson’s taps AI to create a one-stop shop across banners
    • Brands can use AI to protect  older gens from fraud
    • Graph 23: desired retail improvements via AI, by generation, 2025
    • What it means
    • Contributing Analysts
  6. APPENDIX

    • Report scope & market definition
    • The market
    • Forecast methodology
    • Forecast methodology – fan chart
    • Total retail sales and forecast, at inflation-adjusted prices, 2019-30
    • Brick-and-mortar sales expected to grow 2% in 2026
    • Graph 24: total brick-and-mortar retail sales and fan chart forecast, excluding ecommerce, at current prices, 2019-30
    • Total brick-and-mortar sales and forecast, at current prices, 2019-30
    • Total brick-and-mortar sales and forecast, at inflation-adjusted prices, 2019-30
    • Total ecommerce sales and forecast, at inflation-adjusted prices, 2019-30
    • eCommerce share of total retail sales, 2019-30
    • The consumer
    • Consumer research questions
    • US generation groups
    • Abbreviations and terms

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