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
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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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
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
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
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
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
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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