Josh Barling, Managing Director, Retail
Last year on holiday, I was sitting in the hotel restaurant when the waiter casually said, “Your daughter’s got an allergy, right?”
My first thought was how thoughtful of him to remember but then I realised, it wasn’t memory at all. Their EPOS system kept notes against room numbers, they knew my daughter’s allergies, our favourite drinks, our names, it was all there in the system.
But here’s the thing , even though it was automated, it still felt good. That personal touch made a difference.
We live in an age where you can’t escape personalisation. Our audiences expect it and they expect it to get better, more relevant and more seamless.
We’re constantly supplying and having information gathered about us. Together, it builds a picture of our preferences, so why not use it?
I believe personalisation is exactly where SMEs can differentiate themselves and find new ways to blend technology with real human connection.
As we enter 2026, one thing is clear: retail is evolving faster than ever. Consumers expect experiences that are personalised, seamless, and consistent – both online and in-store. For independent businesses navigating this landscape, technology isn’t just a support function anymore, it’s a strategic partner in delivering experiences that delight customers and drive loyalty.
Here are the trends we expect to shape the retail industry in 2026 and how businesses can harness them.
AI is raising the bar for personalised experiences
For 2026, this means customers will increasingly expect hyper-personalised experiences. Small business leaders, in particular, will need technology that helps them manage their presence across multiple online channels, raise visibility, and engage customers wherever they are.
Mainstream AI tools like ChatGPT are rapidly changing the way consumers research, discover and increasingly purchase products. We’re already seeing early examples of customers being able to move directly from conversation to checkout through AI-powered interfaces and websites. That shift raises an important question for retailers: how do you embrace these tools without losing the personal connection that makes your business special?
The answer isn’t replacing people with AI; it’s using AI as an addition to strengthen the experience. For many retailers, that could mean offering AI-driven assistance for simple questions, product discovery or availability, with a clear and immediate handoff to a human whenever the customer needs it. The goal is speed and convenience, without sacrificing trust or service quality. At EKM, one of our ecommerce brands, we’ve implemented an AI agent as another option for customers to access support quickly. We’ve already seen approximately 18 hours per week saved, and an answer rate of 93%.
By leveraging technology to turn customer data into actionable insights, SMEs can deliver memorable experiences that match these expectations.
At the same time, personalisation doesn’t only come from AI. Retailers already have many opportunities to create tailored experiences through the smart use of CRM, targeted communications, loyalty engagement, local knowledge, in-store service and community relationships. A well-timed message, a relevant recommendation, recognising a returning customer, or inviting someone to an event they’ll genuinely enjoy can be just as powerful. A single platform can manage interactions, gather insights, and help businesses respond in a timely, tailored way.
The data shows the demand is already there. Adobe’s 2025 UK Digital Trends report found that 71% of consumers want brands to anticipate their needs with personalised offers or helpful information, while Mood Media UK reports 77% prefer brands that provide personalised, data-driven experiences.
By leveraging technology to turn customer data into actionable insights, SMEs can deliver memorable experiences that match these expectations.
Balancing digital and in-person experiences
Digital convenience has dominated retail strategies over the past decade, but 2026 will see a renewed focus on the in-store experience, particularly for Gen Z consumers. Social and sensory experiences that complement digital touchpoints are increasingly influencing buying decisions.
The numbers back it up:
- 81% shop online regularly, and 83% in-store – highlighting the true omnichannel behaviour of shoppers (RSM UK, Retail Industry Outlook 2025)
- 38% of in-store shoppers use their phones as part of their purchase (PYMNTS, Global Digital Shopping Index, 2025)
- 61% of Gen Z prefer discovering new products in-store, but will use online channels to research and compare before purchasing (PwC, consumer and Gen Z retail insights)
In 2026, we expect to see more retailers leaning into what’s often called “Retailtainment” – combining shopping with entertainment, experience and community. Destination retail is becoming more prominent too, with customers choosing locations that offer multiple reasons to visit, whether that’s cafés inside stores, concessions within complementary businesses, or seasonal events that create footfall and buzz.
Farm shops are a great example of this in action. Many are investing time and energy into events like pumpkin picking, children’s activity days, or curated seasonal bundles that turn a simple visit into an experience. Digital channels then amplify this by promoting events, capturing bookings or interest, and driving customers into store where additional purchases naturally follow.
At the same time, customers increasingly expect their online and in-store activity to feel connected. Large retailers have invested heavily in this, and customers are becoming used to that level of experience.
For retailers, the message is clear: digital and physical channels need to work together, not in isolation.
Customers increasingly expect their online and in-store activity to feel connected. For retailers, the message is clear: digital and physical channels need to work together, not in isolation.
Customers don’t really buy “online” or “in-store” – they buy from your brand, and they expect that experience to feel joined up wherever they interact with you. That’s why consistency across every touchpoint matters, with systems working together behind the scenes to remove friction and make engagement easy.
Often referred to as omnichannel, this approach could be a customer purchasing on your website, earning loyalty points, and redeeming them in-store under one connected account. When it works well, it feels effortless for the customer; when systems aren’t integrated, frustration quickly follows and loyalty can be lost.
Loyalty programmes are the new competitive advantage
Discounts alone won’t win customers in 2026. Instead, loyalty programmes that deliver personalised, experience-driven rewards will take centre stage. Loyalty in 2026 is fundamentally about ownership of the customer relationship. It’s about creating a direct connection that isn’t dependent on social platforms or algorithms that can change overnight – or penalise businesses for sending customers off-platform.
Modern loyalty programmes go far beyond points and discounts. They create meaningful relationships, personalised communication, and a sense of belonging. Owning your customer data enables you to communicate quickly, cost-effectively, and directly with the people who already value your brand, whether that’s through tailored offers, event invitations, early access, or helpful reminders.
For SMEs, technology can make it easier to capture and use customer data to create loyalty programmes that genuinely resonate. Research from LoyaltyLion, highlights that:
- Shoppers want experience-based rewards, such as early access to products and events, not just financial incentives
- Only 61% feel current loyalty programmes provide a personalised experience, showing a clear opportunity for businesses
- 74% want a consistent loyalty experience online and in-store
This direct connection becomes even more powerful when integrated with digital and in-store behaviour. Instead of broadcasting generic messages, retailers can deliver timely, relevant communications that genuinely add value. That’s how loyalty becomes an experience rather than a promotion – and how independent retailers can compete on relationship, not price.
This means 2026 will be a year for building loyalty through thoughtful, tailored experiences rather than relying solely on price-based incentives.
Final thoughts
Retail in 2026 will reward businesses that embrace technology thoughtfully – not as a replacement for human connection, but as a way to strengthen it. AI will raise expectations for personalisation and insight. Physical retail will evolve into experience-led destinations supported by digital visibility. Loyalty will become about owning and nurturing real customer relationships. By embracing and investing in these tools, businesses can meet changing customer expectations and strengthen the relationships that set them apart from larger competitors.
At ClearCourse, we work closely with retailers to deliver solutions that make these strategies achievable, practical, and scalable. As we look ahead to 2026, one thing is certain: those who invest in technology to create truly personalised, consistent, and memorable experiences will not only survive – they’ll thrive.
