2026 is shaping up to be a year defined by recalibration and renewed discipline. Part 1 of our Retail Outlook 2026 series highlighted three shifts that are reshaping how retailers pursue growth, including the return to profitability, the rise of invisible AI, and the evolution of loyalty into membership-based value.
Part 2 builds on that foundation by examining three additional trends that are expanding the retail growth agenda. Retailers are creating new revenue streams, improving control over margin, and elevating customer experience in ways that reflect a more mature and competitive marketplace. These shifts show how retail strategy is evolving to meet changing consumer expectations and tighter commercial realities.
Retail media has become one of the most significant developments in retail economics. With access to high-quality first-party data and direct shopper engagement, retailers are creating advertising environments that compete with traditional digital channels on both relevance and performance. Brands value the ability to target customers near the point of purchase and measure outcomes with the level of accuracy difficult to achieve elsewhere.
For retailers, the appeal of retail media is equally strong. It generates high-margin revenue that does not carry the risk of inventory, markdowns, or volatile consumer demand. As operating costs and competitive intensity rise, retail media is emerging as a stabilising force in the income mix. It allows retailers to fund loyalty programs, support sharper pricing, and strengthen supplier partnerships.
The rise of retail media is also reshaping commercial relationships. Retailers and brands are shifting from transactional negotiations to collaborative planning. Campaign performance, category insights, and shopper behaviour become shared priorities. This partnership-driven model reflects a more mature and data-led approach to retail growth.
Impact
• Retail media will move from an experimental capability to a core profit driver in 2026.
• Brands will allocate more spend to environments that offer measurable results and stronger attribution.
• Retailers that unify data, media, and commerce will capture the most value from this shift.
Private-label growth is accelerating as consumers seek consistent quality at better value. The combination of economic caution, strong retailer innovation, and improved manufacturing standards has made private label a trusted choice for many households. The perception that private label equals compromise has faded. Instead, many customers see it as a competent and reliable default.
For retailers, this shift brings clear strategic benefits. Private label strengthens margin, provides control over pricing, and offers differentiation in categories where national brands dominate. It also allows retailers to align assortment with emerging customer priorities such as sustainability, wellness, and affordability. These programs deepen loyalty by linking value directly to the retailer rather than to external brands.
As private label expands, it is reshaping category dynamics. Retailers are using these ranges to influence price perception, reinforce quality credentials, and create exclusive offerings. National brands are responding with more innovation, more targeted promotions, and deeper collaboration to protect share.
Private label is no longer simply a budget tier. It is becoming a defining element of modern retail strategy.
Impact
• Private label penetration will continue to grow across essential and discretionary categories.
• Retailers with advanced private label capabilities will gain leverage in merchandising, pricing, and supplier negotiations.
• Customers will gravitate toward retailers that offer trustworthy, high-quality value alternatives.
Experience is re-emerging as a critical factor in customer choice. With many retailers offering similar products at similar prices, the way customers feel during a shopping journey has become a meaningful source of differentiation. They want experiences that are intuitive, connected, and worth their time. They also expect digital interactions to be personalised and store environments to offer something beyond convenience.
Retailers are responding with a more holistic approach to experience. Stores are evolving into service and discovery hubs supported by curated assortments, knowledgeable staff, and in-store technology that enhances exploration. Online channels are becoming more predictive, more visual, and more tailored to individual preferences.
What sets experience-driven retail apart is coherence. Customers notice when the journey flows naturally. They respond to personalised guidance, efficient fulfilment, and offers that reflect their needs. These elements build trust and increase frequency because the experience feels intentional rather than transactional.
Delivering this level of experience requires strong operational foundations. Accurate inventory, skilled teams, digital integration, and real-time data all contribute to the final impression customers take away. Retailers that invest in these capabilities will be well-positioned as experience becomes a core battleground for competition.
Impact
• Experience will influence loyalty more directly than price in categories with high choice and low differentiation.
• Retailers that seamlessly connect digital and physical journeys will capture a greater share of wallet.
• Investments in service, content, and community will evolve from optional enhancements to essential components of brand strategy.
The three trends outlined in Part 2 highlight how retailers are expanding the ways they create and capture value. Retail media introduces new income streams. Private label reinforces value and margin. Experience driven retail strengthens loyalty through richer and more connected journeys.
Taken together, the six trends across Part 1 and Part 2 show an industry that is growing more adaptable and more commercially disciplined. Retailers that invest in these areas will be better equipped to compete in a market defined by high customer expectations and tighter economic conditions.
The year ahead will reward retailers that combine relevance, efficiency, and creativity in their product, experience, and partnership design.