Retail Trends to Watch in 2026

Key Takeaways: 

1. Retail is deeply divided. Visits to value and luxury apparel segments grew YoY in 2025 while traffic to mid-tier retailers flagged. 
2. Upscale and fast-casual dining momentum reflects similar bifurcation.  More resilient, affluent consumers are bolstering fine-dining traffic, while fast casual is benefiting from trade-downs from full-service casual restaurants. 
3. Authenticity is key. Brands successfully executing on a clear sense of purpose – from community-driven grocers to bookstores – are driving consistent visit growth. 
4. Online and offline retail are converging into a seamless ecosystem. As consumers seek online value and in-person convenience, AI fulfillment, dark stores, and local pickup are accelerating.
5. Digitally native brands expanding into physical retail are redefining omnichannel. These chains provide a blueprint for merging digital efficiency with personalized in-store experiences.
6. Traditionally urban brands are shifting to suburbia to capture new audiences. With consumers rooted in hybrid lifestyles and growing suburban demand, chains that adapt their footprints drive fresh traffic.
7. Expansion into college markets and celebrity pop-ups are helping retailers and malls connect with younger consumers. Brands that grew their footprints in college towns or on campuses increased their Gen Z traffic, as did malls that hosted celebrity or influencer activations.