Brand Innovators 2026 Outlook: Retail - Brand Innovators

Brand Innovators 2026 Outlook: Retail

The tariff-driven economic uncertainty that has caused volatility in consumer spending in 2025 is expected to spillover into 2026, making many retailers feel uneasy about the New Year. Forty-six percent of fashion executives expect conditions to worsen in 2026, per McKinsey. Forrester is predicting bankruptcies at specialty retailers. And JP Morgan expects prices to rise as retailers pass along costs to consumers.

Marketers will have to be smart, technologically savvy and part of the cultural zeitgeist to navigate these choppy waters. “‘Disruptive’ is not just a throwaway word in retail marketing,” says Craig Brommers, chief marketing officer at American Eagle Outfitters. “It’s a survival skill to cut through in this cutthroat market. Taking big bets will define 2026.”

Social shopping, AI chat bot assistants, frictionless cross channel shopping will increase in 2026. “We’re in the middle of a massive shift of content that’s being consumed,” says Paul Toms, chief marketing officer at Wayfair. “For as much as AI has taken off in ‘25, I think it will become even more proliferated in 2026. You’ll have this huge wave of content that folks are consuming. AI-automated generated content at scale. But as a result, consumers will also be seeking more human connection, when the moment is right, more grounded, more down to earth experiences and offline moments as well.”

The in-store experience will remain key to these offline moments, especially as younger audiences looking for more IRL experiences are heading back to the mall and into stores. Expect brands to approach experiential as a key channel that supports digital storytelling.

“In 2026, retail will be less about shopping in the traditional sense and more about creating meaningful, multi-sensory experiences that build emotional connection with the brand,” says  Kristin Patrick, chief marketing officer and chief digital officer at Marc Jacobs. “We’ll continue to see more blending of physical and digital to create truly integrated storytelling. Stores are no longer just points of sale – they’re evolving into content hubs, community spaces and cultural touchpoints. The brands that win will be the ones that can surprise and delight in authentic yet unexpected ways, while staying in tune with their consumers values and expectations.” 

“The trick is how can you make your retail destinations feel like experiences that reflect the brand without enormous capital expenditure. That’s honestly the challenge that many of us face but I do believe it’s possible,” says Marisa Thalberg, EVP, Chief Customer and Marketing Officer at Catalyst Brands (JCPenney, Brooks Brothers, Aeropostale, Nautica).  “At JCPenney, we do something called Kids Zone once a month where we invite kids to do our arts and crafts activities. it’s grassroots and that’s the kind of thing that we can do easily.”

Lee Sterling, chief marketing officer at Simon Property Group, concurs that experiences will shape the retail experience in 2026 and hopes that experiential will help build loyalty. “Expect a surge in demand for multidimensional and experiential retail spaces that foster togetherness, alongside fast, frictionless discovery,” she says.  “Economic pressures will bring loyalty programs to the forefront and brands that seamlessly integrate physical and digital touch points will dominate. That’s what’s driving Simon+, our new omnichannel loyalty program, which recognizes and rewards customers no matter how or where they choose to shop.” 

Loyalty will also be driven not just by points spent on a credit card but through showing up at key moments in a consumer’s life.

“The next era of retail marketing will be defined by emotion – period,” says Sarah Crockett, chief marketing officer of Carter’s. “Today’s landscape inevitably changes how we break through to our brand fans, but the core relationship between fans and brands feels familiar, and the best brands leave a memory in the minds of their consumers – they always have, and they always will. Whether that’s a small memory like that social post you sent to your BFF encouraging them to have baby No. 2 or if it’s the first car ride with your newborn baby and how you’ve dressed them to leave the hospital.”  

Expect retailers to embrace technology but balance authentic human connections to avoid putting consumers off. 

“In 2026, retail marketing will shift toward more human, insight-led engagement,” adds Barbra Sainsurin,  global chief marketing officer at Anthropologie Group. “Teams will use data strategically to create consistent, customer-focused experiences that feel meaningful. Anthropologie will continue to build on our in-store expertise while ensuring that our digital experience reflects the same level of creativity and authenticity, meeting her with the right product and message at the right time.”