The retail sector continues to evolve to develop into more digital, social and connected, a brand new report from Salesforce found.
The sixth edition of Salesforce’s “Connected Shoppers” report found agentic AI to be considered one of the numerous drivers of retail’s continued evolution, with 75% of outlets saying AI agents will develop into essential by 2026.
But AI agents are removed from the one thing changing.
The report found that physical stores are expanding as experience hubs and achievement centers that bridge digital channels, social platforms and physical shopping journeys.
According to the report, shoppers estimate 41% of their purchase volume will come from physical stores in 2026, down from 45% in 2024.
The report said retailers are transforming their stores greater than shopping destinations, delivering elevated retail experiences. More than half (59%) of outlets now offer in-store services like customization and repairs, while 46% provide dedicated spaces for events and community gatherings.
New roles mean latest responsibilities for retail associates
Retail location transformation means the stores’ roles are also changing. Traditional checkout duties occupy just 28% of retail employees’ time, while responsibilities corresponding to store operations, customer support and achievement activities fill the remaining time.
As their duties expand, retail associates face mounting technological complexity. The report found latest associates must master a mean of 16 different systems they’ll use every day — up from 12 in 2023 — and spend 26 hours on technology training of their first month on the job.
AI, and agentic AI specifically, stands poised to ease the burden of retail associates since it makes information easily available and increasingly handles tasks independently. That’s why the report found retailers see AI as their No. 1 opportunity.
Unfortunately, the report also found AI implementation the highest operational challenge. For that, high operational costs and disconnected systems, which slow progress, are accountable. Store associates feel the burden of disconnected technology — only 17% have access to a unified view of customer data, the report found.
Yet retailers remain optimistic on AI. The report found 89% of outlets expect returns on their AI investments, with similar shares reporting increased online sales volume and reduced operational costs.
Dig deeper: Salesforce Agentforce: What it’s essential know
Loyalty programs and social shopping are hot
Brand loyalty will be fleeting today, especially amongst younger shoppers. The report found retailers are responding to this challenge by reimagining customer support and refining their rewards programs. Eighty-four percent of loyalty program members say such programs make them more prone to repurchase.
Other findings about loyalty programs include:
- Two-thirds of outlets offer a loyalty program.
- 29% plan to introduce one in the following 24 months.
- The average shopper belongs to 4 loyalty programs.
- Gen Z is 3 times more likely than baby boomers to value exclusive experiences.
Social shopping can also be booming, especially with younger consumers. More than half (53%) of shoppers discover products on social platforms — up from 46% in 2023.
Other social commerce findings from the report include:
- Nearly one-quarter of shoppers follow influencers for inspiration.
- 25% of shoppers buy through social media.
- 16% buy through messaging apps.
YouTube is the most well-liked social platform for product discovery, followed closely by Instagram and Facebook. Generation plays a key role in shaping habits, with 40% of Gen Z using TikTok for shopping discovery in comparison with just 4% of baby boomers.
The sixth edition of the “Connected Shoppers” report is predicated on a survey of 8,350 shoppers and 1,700 retail industry decision-makers. Data within the report are from two double-anonymous surveys conducted from Nov. 27 through Dec. 26, 2024. Respondents represent 21 countries across five continents. All respondents are third-party panelists.
Dig deeper: More consumers using genAI tools to research purchases: Adobe
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