For the year ended 31 January 2026, OVS said net sales reached €1.7459 billion (about $2.06 billion), a 7% increase year on year. Stripping out the seven-month contribution from Goldenpoint, underlying sales still rose 2.9%—well ahead of a reference market that expanded by only 0.3% over the same period. Revenue from directly operated stores came in at €1.4313 billion, up 8.2%, while franchising and B2B channels generated €314.7 million.

Profitability moved higher alongside sales. Adjusted gross margin increased 8.8% to €1.033 billion, with gross margin reaching 59.2%. Adjusted net profit climbed 14.8% to €89.4 million, underscoring the operating leverage created by higher volumes and a richer mix.

Brand-level earnings also improved. OVS reported EBITDA of €172.6 million, up €9.8 million year on year. Upim delivered €44.0 million in EBITDA, compared with €40.1 million in 2024. Stefanel also strengthened, with EBITDA rising by roughly €4 million. Goldenpoint added €3.9 million of EBITDA during its consolidation period, the group said.

CEO Stefano Beraldo said the OVS FY25 results validated the retailer’s strategy of pairing accessible pricing with a stronger emphasis on design and sustainability. “2025 was a year of excellent results, with growth across all the main banners and brands. This performance confirms the validity of a positioning based on quality, stylistic research, and sustainability, which have elevated the perceived value of the brands, effectively intercepting a growing demand for quality products at affordable prices,” said Stefano Beraldo, CEO of OVS.

He said OVS continued to broaden its brand architecture through new launches and line expansions, including Les Copains, new developments within the PIOMBO label and growth across Altavia, B Angel and Utopja. OVS also highlighted womenswear and beauty as key growth engines. In beauty, momentum was supported by the Shaka format, which now operates 10 stand-alone stores.

Store investment remains a major pillar as shoppers spend more time in physical retail again, Beraldo added. “Another fundamental pillar remains the constant enhancement of the stores, in a context where offline is regaining centrality in customer preferences,” he said, pointing to upgrades aimed at improving merchandising and the overall customer experience.

Goldenpoint’s integration was described as constructive, with roughly 10% sales growth during the initial consolidation period. OVS said product refreshes, store modernisation and purchasing synergies supported better margins and improved performance.

Looking ahead, OVS indicated it plans to push harder on international expansion, backed by a solid balance sheet and continued traction in womenswear. “The internationalisation strategy of OVS is accelerating, supported by a solid financial position and the success of the womenswear offering. Expansion into the most promising markets is planned for 2026,” Beraldo said.

OVS added that the new financial year has opened with “significant” growth versus the prior year, helped by strong early demand for new collections—an encouraging signal following the record OVS FY25 results and the ongoing integration of Goldenpoint.

For the first quarter, Kering Q1 2026 revenue totalled €3.568 billion (about $4.21 billion). That was down 6% year on year on a reported basis, but the company said sales were stable on a comparable basis, suggesting momentum is no longer deteriorating at the pace seen previously.

CEO Luca de Meo said the quarter marked a turning point in the trajectory. “In the first quarter of 2026, group revenue stabilised, marking an important first step in our recovery and a further sequential improvement. This performance reflects the first tangible effects of our actions, despite a challenging geopolitical environment,” said Luca de Meo, CEO of Kering.

By channel, direct-to-consumer remained mixed. Comparable retail revenue—including e-commerce—fell 2%, reflecting uneven performance by geography, while wholesale revenue increased 6%, providing a partial offset.

Within Fashion & Leather Goods, the group posted €2.852 billion in revenue. That represented a 9% decline on a reported basis and a 3% drop on a comparable basis. Comparable direct retail sales for the segment decreased 4%. Kering said Saint Laurent, Bottega Veneta, Balenciaga and Brioni were the main sources of resilience, with North America a particular bright spot for several houses. Segment wholesale revenue rose 2%.

At brand level, Gucci continued to weigh on the group. The label generated €1.347 billion in revenue, down 14% reported and 8% comparable. Retail revenue declined 9% on a comparable basis. Kering said North America grew 8%, but that strength was outweighed by weaker trading in Asia-Pacific and Western Europe.

De Meo reiterated that Gucci’s recovery remains the priority and said work is focused on the offer as well as distribution and client experience. “Gucci remains our top priority. A comprehensive turnaround is underway, with decisive actions across client, distribution and, above all, the offer,” added de Meo. “We have reset the product architecture and strengthened category focus, with new collections rolling out progressively in stores throughout the year.”

Kering also highlighted the Middle East as an area of continued strategic attention, accounting for roughly 5% of retail revenue. The group operates 79 stores in the region and employs around 1,100 people there. Regional retail revenue fell 11% in Q1 after previous growth, which Kering linked to geopolitical tensions, though it said all stores remain open.

Beyond sales performance, Kering said it continued to reinforce its operating model during the quarter, including building shared capabilities intended to support its houses and lift efficiency. “The first quarter of 2026 marked continued progress, as we executed with pace and focus. We have launched a Group platform designed to support the growth of our Houses and enhance efficiency,” said de Meo.

Kering said it remains focused on restoring growth and improving margins through 2026, positioning the stabilisation seen in Kering Q1 2026 revenue as an initial step rather than a completed turnaround—particularly with Gucci still in the middle of a multi-pronged reset.

US consumer spending remained resilient in March, with retail sales extending their upward streak to a sixth consecutive month as tax refunds helped cushion households from higher petrol costs tied to the conflict in the Middle East. Data from the CNBC/NRF Retail Monitor shows broad-based growth across most retail categories, including a strong showing from clothing and accessories.

According to the monitor, retail sales excluding vehicle dealerships and fuel stations increased 0.4% on a seasonally adjusted basis from February to March, and were up 6.59% unadjusted compared with March 2025. That followed February gains of 0.28% month on month and 6.24% year on year.

A narrower “core” measure—which removes restaurants as well as auto dealers and petrol stations—rose 0.41% from the prior month and climbed 7.05% from a year earlier. In February, core sales increased 0.27% month on month and 5.87% year over year.

On a quarterly basis, the report shows total retail sales for Q1 2026 were 6.18% higher than the same period last year, while core sales rose 6.14%.

Category detail suggests apparel remains a bright spot in the US retail sales March 2026 picture. Clothing and accessories stores recorded a 0.57% monthly increase and a 10.89% annual rise. Sporting goods, hobbies, music and book stores posted a 0.4% month-on-month gain and were up 10.88% from March 2025. The monitor also highlighted strong year-on-year growth in health and personal care.

NRF president and CEO Matthew Shay said the combination of refunds and essential spending priorities helped keep cash registers ringing despite a difficult macro backdrop. “Retail sales grew for a sixth consecutive month in March as the first wave of tax refunds offset higher gas prices resulting from the conflict in the Middle East. Despite record-low consumer sentiment and the highest inflation rate in two years, consumers continued to spend on household priorities. As consumers focus on costs, retailers remain laser-focused on keeping prices competitive and affordable.”

The US retail sales March 2026 data indicates shoppers are still spending, but the report suggests the pattern is pragmatic rather than exuberant—supported by seasonal inflows such as refunds while inflation and energy volatility continue to pressure household budgets.

The retailer—now operating as an asset-light franchisor—also reported weaker profitability. Adjusted EBITDA was approximately £1.25 million, compared with £3.5 million the year before. The company estimated that the recent conflict in the Middle East reduced EBITDA by around £0.1 million.

Balance sheet pressure increased during the year. Net borrowings rose to £5.7 million at FY26 year-end, up from £3.7 million in March 2025.

Clive Whiley, chairman of Mothercare, said the Mothercare FY26 results reflected the operational challenges faced by partners in a key region. “Our results for last year reflect the impact of the continuing uncertainty on our franchise partners’ operations in the Middle East, where any longer-term impact upon supply chains remains unclear at this stage, and the underlying profitability and cash generation of our asset-light franchise system.”

Mothercare said performance was more resilient outside the most affected markets. Excluding both the Middle East and the UK, like-for-like retail sales across its remaining franchise network were positive for the full year, suggesting underlying demand for the brand held up in other territories.

In the UK, the group reiterated that it still sees long-term opportunity, but is looking for a new partner following the conclusion of the Boots arrangement.

The company also said its financial position had not materially changed since refinancing its debt facilities in February 2026, a process that also deferred additional contributions to its pension schemes. Mothercare’s pension deficit was estimated at £35 million at 31 December 2025, broadly unchanged.

Whiley said the refinancing provided breathing space to pursue options to monetise the brand and scale operations again. “The full refinancing of our debt facilities in February 2026 has bought additional time to engineer a more comprehensive solution to harvest the value of the brand IP and the significant operational gearing available to an expanded business. In these circumstances, the recent financial performance has been usefully resilient as we look to FY27, whilst acknowledging the impact of the continuing disruption from events in the Middle East

“Given the external factors influencing some of the Company’s key operating markets, our immediate priority remains to support our franchise partners, ultimately for the benefit of our own underlying business, where the strength of the Mothercare brand endures. We remain in discussions with several parties to restore critical mass, a process greatly assisted by the recent alignment of the first-charge debt instrument with our equity.”

Looking ahead, the company indicated that stabilising partner operations and rebuilding scale remain central to its plans, with the Mothercare FY26 results underscoring how geopolitical disruption and partnership changes can quickly affect an international franchise model.

The figures reflect Vinted’s continued expansion across Europe and a strategy focused on building a broader ecosystem around peer-to-peer resale. Revenue rose 38% from 2024, according to the company, while net profit declined 19% as it increased spending to scale in Germany, rolled out new payments functionality through Vinted Pay’s wallet, and broadened its offer into additional categories.

Vinted also reported gross marketplace value of €10.8 billion (about $12.68 billion), up 47% year on year, underscoring rising transaction volume as more buyers and sellers use the platform. The company said its core fashion segment remained the main driver of activity, with women’s and children’s categories posting particularly strong momentum.

Geographic expansion continued alongside category growth. In addition to prioritising the German market, Vinted extended its footprint into Latvia, Estonia and Slovenia, strengthening its presence across Europe.

Logistics and payments build-out

A major focus of 2025 was infrastructure. Vinted launched Vinted Go, its own carrier operation, in Spain and Portugal. The company said the service is now active in five markets, including Belgium, France and the Netherlands. To support rising parcel volumes, Vinted also opened a new sortation centre in France.

The platform is also exploring ways to monetise its delivery capabilities beyond its own marketplace, testing logistics services for external customers.

On the payments side, Vinted Pay is being rolled out to users with the aim of reducing reliance on third-party providers and cutting payment-related costs over time.

Cost efficiency as a competitive lever

Management framed cost discipline and usability as central to its mission of shifting consumer behaviour toward resale. “To make second-hand first choice, we know what we need to do: we need to be the most cost-efficient, be the most reliable and easy to use. Therefore we need to build an ecosystem for C2C second-hand trade, that maximises value to members at the lowest possible cost. We do this by investing in technology to have long-term scalable impact. That’s why you see us improving our product, investing in safety and member support, while strengthening the rails that power the marketplace: shipping and payments,” explained Thomas Plantenga, CEO at Vinted.

Plantenga said the goal is to remove friction so items move faster and buyers can find better value, while making delivery and payment more seamless. “When we do this well, sellers sell their items quicker, buyers find what they want more easily and at the best price, all while delivery and payment happen seamlessly and reliably. When this happens, the value compounds as the marketplace gets meaningfully better with each additional member.

“In 2025 this happened across every growth vector we have, which resulted in strong growth and, more importantly, a more efficient and stronger foundation that will drive the future consumption shift from new to second-hand.”

The Vinted 2025 results arrive as the company has reportedly been evaluating a potential share sale that could value it at around €8 billion. While Vinted has not confirmed those reports in the figures released, the combination of rapid GMV growth and continued investment in payments and logistics indicates it is positioning for longer-term scale rather than maximising near-term profit.

With revenue now above $1 billion and infrastructure spending accelerating, the Vinted 2025 results suggest a platform prioritising operational control—over shipping, payments and user experience—as it competes to make secondhand shopping mainstream across Europe and beyond.

For the six months to 28 February 2026, the company reported revenue of ¥2.0552 trillion (about $12.95 billion), up 14.8% year on year. Business profit rose 28.3% to ¥386.9 billion, while operating profit climbed 31.7% to ¥400.6 billion. Profit attributable to owners of the parent increased 19.6% to ¥279.2 billion, according to the company.

Profitability also strengthened at the gross level. Gross profit grew 16.4% to ¥1.1115 trillion and gross margin improved by 0.8 percentage points to 54.1%, reflecting a richer mix of products and better execution across markets.

On the back of the first-half beat, Fast Retailing raised its full FY26 forecast. It now expects revenue to reach ¥3.9 trillion (around $24.57 billion), representing 14.7% growth versus FY25, up from a previous forecast of ¥3.8 trillion. Business profit is now projected at ¥690 billion, a 25.2% increase from FY25 and above the prior ¥650 billion estimate. Operating profit is expected to hit ¥700 billion, up 24.1%.

UNIQLO delivered higher sales and profits across every region, producing what Fast Retailing described as the best first-half outcome in its history at group level. In Japan, UNIQLO revenue increased 7.4% to ¥581.7 billion and business profit rose 13.4% to ¥110.7 billion.

Internationally, UNIQLO remained the primary growth driver. First-half revenue jumped 22.4% to ¥1.2413 trillion, while business profit surged 37.4% to ¥233 billion, supported by strong same-store performance and improved merchandising.

In Greater China—including Hong Kong, Macau and Taiwan—the company said results exceeded plan with higher revenue and double-digit profit growth. Mainland China returned to growth in January and February after a softer December that management attributed to unusually warm weather.

South Korea recorded double-digit gains in both revenue and profit, helped by strong comparable-store sales and more effective digital communication of product benefits and styling, particularly with younger shoppers. In Southeast Asia, India and Australia, Fast Retailing reported higher revenue and profit across all markets, alongside double-digit same-store sales growth.

North America and Europe also posted double-digit increases in both sales and profitability. In the US and Canada, the company said strong comparable sales were supported by successful promotion of winter ranges as well as core, year-round staples such as sweatshirts, pants and Jersey Barrel Leg Pants.

Fast Retailing pointed to an expanding contribution from year-round products as a consistent tailwind across regions. It highlighted global demand for styles including Jersey Barrel Leg Pants, Baggy Curve Jeans and Wide Sweatpants, alongside refreshed “core” items updated to match current silhouettes and fabric preferences. The company also credited tighter coordination between production, marketing and sales for better planning accuracy, as well as improved communication of styling ideas through both stores and e-commerce.

The GU brand delivered comparatively modest top-line growth but a sharper improvement in profitability. GU revenue rose 1.6% to ¥168.4 billion in the half, while business profit increased 20.1% to ¥15.7 billion and operating profit rose 18.3% to ¥16.4 billion. Its gross margin improved by 1.1 percentage points to 49.4%.

Looking to the second half of the year, Fast Retailing said it will prioritise building a “more value-creating” business model—maintaining lean inventory while avoiding stock-outs, strengthening store-level autonomy, upgrading the quality of its store network, and investing further in global management capability and talent.

Store expansion remains incremental rather than aggressive. As of end-February 2026, the group operated 3,532 stores worldwide (excluding the Mina format and pop-up locations) and expects to finish FY26 with 3,551 stores.

With the upgraded guidance, the Fast Retailing FY26 H1 results underscore how UNIQLO’s international engine—paired with stronger product execution and year-round staples—continues to push the group’s growth and margin profile higher despite uneven weather-driven demand swings in key markets.

WEDI indicates corporate distress stayed above its long-run average in the first quarter of 2026 and, critically, is already higher than levels seen before the 2022 Ukraine-war energy shock. That comparison suggests balance sheets and earnings capacity across parts of the European economy have less headroom than in prior cycles, increasing sensitivity to renewed cost inflation and demand weakness.

Retail remains the standout pressure point. Despite the modest quarterly improvement, the sector’s distress is materially higher than a year earlier and, on a six-month rolling basis, sits at its highest level since the global financial crisis, the index suggests. Profitability is the primary fault line: retailers are facing higher operating costs—wages in particular—while consumers spend more cautiously. That combination leaves the sector exposed to further squeezes if energy prices rise again or if confidence weakens further.

Industrials rank as the second-most distressed sector, with pressure rising over the quarter. WEDI points to soft investment conditions, fragile business confidence and uncertainty around global trade as constraints on activity. With many companies already delaying capital expenditure, the index warns that a further deterioration in sentiment particularly amid escalating geopolitical tensions including the Iran conflict could deepen industrial stress.

The Weil European Distress Index also highlights meaningful differences by country. Germany remains the most distressed market in Europe, even though conditions have improved somewhat compared with last year. Liquidity, profitability and investment pressures are still pronounced, while insolvency trends reinforce a fragile backdrop. Germany’s industrial exposure also makes it particularly vulnerable to renewed disruption in energy markets and input costs.

France is described as the clearest deterioration story among Europe’s major economies. Distress has risen into early 2026, driven largely by pressure on liquidity and profitability as companies navigate weak demand, rising costs and an uncertain investment outlook. With economic growth cooling and unemployment climbing, the index suggests France has moved into the latest volatility cycle from a weaker base.

The UK is the third-most distressed market. Although distress has eased compared with a year earlier, WEDI signals that underlying pressures remain broadly spread across liquidity, profitability and risk measures. Soft growth, rising unemployment and margin pressure continue to weigh on businesses. The UK’s sensitivity to interest rates is also a factor, particularly as energy-driven inflation risks complicate expectations for monetary easing, with the Bank of England holding rates at 3.75% at its latest meeting.

Weil partners Andrew Wilkinson and Neil Devaney said the main risk is how quickly current pressures compound, rather than the existence of a shock itself. “What’s striking here is not just that distress remains elevated, but where we are in the cycle. Businesses are entering a period of renewed volatility already under pressure, which leaves far less room to absorb further shocks. The key risk is pace. If energy prices remain elevated and confidence continues to weaken, we could see stress build more quickly than in previous cycles – particularly for companies that have already delayed investment or are operating with tighter margins,” Wilkinson said.

Devaney added: “The more important story isn’t at the very top of the rankings – it’s how distress is starting to evolve beneath the surface. We are seeing continued pressure in industrials, alongside early signs of stress emerging in infrastructure, utilities and power. This matters because these are capital-intensive, system-critical sectors. If pressure continues to build here, it points to a broader and more entrenched cycle of distress, rather than one confined to consumer-facing industries.”

RTS said price-led marketplaces remain popular. In the past year, 45% of UK shoppers bought from Temu or Shein, underlining how quickly ultra-low pricing has become embedded in mainstream shopping habits. Temu recorded 115.7 million unique European users per month in the first half of 2025, while Shein reported that its UK sales rose by roughly a third to more than £2 billion—leapfrogging Boohoo and narrowing the gap with Asos.

Yet the report also suggests growth may be moving into a more mature phase. RTS points to market saturation, tightening regulation and persistent questions around environmental and commercial durability as factors that could slow the pace of expansion.

Against that backdrop, RTS surveyed 1,000 UK shoppers and found majority support for revisiting the UK de minimis rule, which exempts imported parcels valued under £135 from import duties. Overall, 54% of respondents said the government should change the threshold to limit the flow of ultra-cheap ecommerce products into the UK. Support was strongest among younger shoppers: 68% of Gen Z backed reform.

The data highlights Gen Z’s role as both the most active users of Chinese marketplaces and the demographic most supportive of policy change. RTS said 82% of UK Gen Z consumers shop on Chinese platforms, and 41% buy from Shein at least monthly—more than twice the rate of older generations (16%). The finding suggests that the desire for a fairer competitive environment does not necessarily sit in opposition to bargain-hunting behaviour.

“There’s no denying that the lure of ultra-low-priced goods will appeal to squeezed consumers as downward pressure on household budgets continues to suppress spending. But while consumers want access to competitively priced goods, they also want to support home-grown retail brands,” commented Matt Bradley, Founder and Event Director of RTS.

“Consumers are increasingly calling for the playing field to be levelled up to ensure the ongoing health of the retail sector and the High Street in the long-term.”

The UK debate is unfolding alongside international moves to tighten low-value import regimes. In the US, tariff changes and the removal of de minimis exemptions for low-value parcels were followed by a sharp slowdown in marketplace engagement. RTS cited figures showing that between March and May 2025, Temu’s US daily active users fell 52%, while Shein’s dropped 25%.

Many in the UK retail sector expected a similar shift domestically, and it was widely anticipated the UK would scrap or reform the exemption in last year’s Autumn Budget. Instead, the UK de minimis rule will remain in place until March 2029, despite lobbying from retailers including Primark, Currys and Next, as well as the British Retail Consortium (BRC).

RTS 2026 will put that policy tension on stage. Helen Dickinson OBE, chief executive of the BRC, is set to speak at the event in a session examining whether the UK government is enabling—or obstructing—retail innovation, growth and investment. She will join Kate Hardcastle MBE for a fireside chat on 22 April discussing policy, market trends and the health of the sector. Retail Economics CEO Richard Lim will also speak on 23 April on how retailers can manage economic pressure and disruption while responding to shifting customer expectations.

The company is positioning the rollout as part of a broader rebuild of its digital foundation. Using unified data on Google Cloud alongside AI-ready architecture and governance controls, Gap said it is embedding AI across customer journeys and internal workflows. The objective, it said, is to make intelligence a core part of its operating model rather than a bolt-on feature.

Gap chief technology officer Sven Gerjets said the focus is practical outcomes rather than novelty. “We are not pursuing AI for novelty. These partnerships are about solving real customer problems – helping shoppers feel confident about fit and making it easier to complete a purchase. They also reflect the holistic AI strategy we’ve built to scale intelligence across the enterprise in a disciplined way that drives measurable value over time.”

Sizing is a persistent friction point in online apparel, and Gap is targeting that directly by integrating Bold Metrics’ predictive fit technology into its AI-driven shopping flows. Instead of directing customers to static size charts, the system is designed to deliver personalised size recommendations within live, conversational interactions—placing fit guidance inside the purchase path rather than outside it. Gap said the intent is to make sizing advice an always-on component of the transaction experience and a key enabler for conversational shopping.

Alongside fit personalisation, Gap is preparing for discovery and checkout to happen increasingly inside AI-powered environments. By supporting Google’s Universal Commerce Protocol, the retailer aims to keep product listings accurate and transaction-ready within services such as AI Mode in Google Search and the Gemini app. In practice, this could allow customers to complete purchases directly from these interfaces, shortening the distance between finding an item and paying for it.

Gap said the pairing of predictive sizing and AI-native commerce should “reduce friction” both in size selection and at checkout, improving confidence and conversion while meeting customers in the digital spaces where they are increasingly browsing.

Gap sells clothing, accessories and lifestyle products across Old Navy, Gap, Banana Republic and Athleta. The company reported total net sales of $15.4 billion for fiscal 2025, reaching the upper end of its outlook

The report suggests retailers expect tangible operational benefits to arrive quickly. Many anticipate “meaningful” impact within the next 12 to 18 months, while clearer and more scalable returns on investment are expected in roughly two years. That timeline, Retail Economics argues, creates a narrowing window: delaying capability building risks leaving retailers exposed as AI shifts from optional pilots to a baseline requirement for competing.

Today, the report estimates around 32% of marketing and ecommerce tasks are already exposed to being supported, enhanced or partly automated by AI. The impact spans core activities including personalisation, analytics, campaign execution and product discovery—areas where AI can compress time-to-decision and increase the precision of targeting. Data and analytics functions are among the most immediately exposed, the report notes, because AI systems excel at pattern recognition, forecasting and optimisation. Customer personalisation and experience execution are also highly exposed, reflecting retailers’ push for more relevant, real-time engagement across channels.

Brand and creative functions appear less automatable in direct terms, but still represent a meaningful share of exposed budgets because creative and brand-building remain large line items in marketing spend. In other words, even modest automation or augmentation in these areas could move substantial amounts of AI retail marketing spend.

The research covers four European regions—Benelux, DACH, the Nordics and the UK—and paints a market in transition. Almost all retailers (95%) have tested AI tools in marketing, with many beginning in 2023 through early generative AI and large language model experimentation. But the report finds a split between those still exploring what AI can do and those embedding it into daily operations.

Around one in four retailers remain in exploration or pilot-scaling phases, often constrained by data quality, limited in-house skills or uncertainty over governance. By contrast, 45.3% are described as “operational,” meaning AI is integrated across multiple workflows and is influencing day-to-day execution. Another quarter say AI is embedded at a strategic level, shaping planning, prioritisation and decision-making across functions rather than being limited to isolated use cases.

Despite growing adoption, commercial proof remains uneven. Only 5% of retailers say AI is currently delivering clear, scalable ROI—highlighting a gap between activity and outcomes. Still, most expect that to change quickly as tooling improves and organisations mature their data and operating models.

Skills and governance are cited as major barriers in the UK. The report notes that cultural hesitation and governance concerns constrain three quarters of UK retailers, while two thirds point to a lack of internal expertise as a core obstacle to deploying AI effectively. Data compliance concerns also slow progress, particularly as retailers balance personalisation ambitions with privacy and regulatory expectations.

Voyado’s chief product officer Felix Kruth argued that the next phase of value will come from autonomous systems operating behind the scenes. “What’s most exciting is that we’re still very early in the journey, and the AI we’re using today is likely the least impressive version we’ll ever see. This is still young technology. Generative AI has already delivered significant efficiency gains, but it’s agentic AI, built on the right data foundations, that will prove real commercial value.

“In the race to demonstrate AI progress, it is easy to focus on what is visible: new interfaces, chatbots, and features. But without the right data foundation and context, the impact simply does not materialise. The real value in retail is created by AI working in the background – prioritising the right customers, optimising decisions and ensuring the right thing happens at the right moment.”

Retail Economics CEO Richard Lim described the next two years as decisive. “The next two years represent an inflexion point as AI shifts from experimentation to competitive necessity. Retailers are on a journey, and while most have begun testing and deploying AI, few have reached a stage where it is delivering consistent commercial returns.

“As AI transforms retail tasks, it is reshaping how marketing and ecommerce spend is executed. The retailers that succeed will be those building the right data foundations, skills and operating models now, as AI becomes a core requirement for competing effectively in retail.”

As AI adoption accelerates, the report’s central argument is that AI retail marketing spend will increasingly be determined by data readiness and organisational capability, not just tool availability—separating retailers that industrialise AI from those that remain stuck in pilots.