Every year brings a new wave of retail technology predictions, and every year most of them are some version of “buy more tools.” Having spent the last several years building communication infrastructure for the sales floor, I don’t think that mindset is helpful for what stores actually need in 2027. From my experience, the stores that will be at the forefront of innovation won’t be the ones with the most independent systems. They’ll be the ones where technology, people and data actually talk to each other.
Here's what I'm watching, and why.
AI is growing up, and that's a good thing
The last couple of years saw a lot of retailers rush public-facing chatbots into production, and more than a few of those chatbots went rogue: promising discounts nobody authorized, misquoting return policies and generally proving they need oversight. Gartner has been blunt about this, warning retailers against treating AI agents like autonomous employees.
I think that’s exactly right, and I think 2027 is the year the industry will correct its course. The value of agentic AI isn’t in replacing judgment; it’s in removing friction from workflows a human still oversees, allowing things like automated restocking, task scheduling and inventory reconciliation to run quietly in the background. Where I’m most excited, though, is the frontline. Voice-powered wearables that connect associates directly to AI and store systems mean store associates can finally get instant answers and guidance without ever having to hunt for a manager or an out-of-the-way computer terminal. Here, AI’s not replacing associates; it’s an assistant that makes them better at their jobs.
The sales floor is becoming a media channel
As I shared last year, in‑store retail media is an area that’s growing by leaps and bounds, and it’s no surprise. Why? Over 80% of U.S. retail transactions still happen in a physical store. That makes the sales floor the highest-converting advertising environment retailers have, and retail media networks are quickly taking advantage of new digital real estate, such as digital endcaps, smart carts and electronic shelf labels. Unsurprisingly, Forrester projects global retail media spend will exceed $300 billion by 2030. Proving that retail media has moved beyond an experiment into a real, high-margin revenue line.
ESLs are getting complicated, and that's worth planning for
Electronic shelf labels solve a genuine operational headache. They remove the need to manually update paper-based pricing and avoid losing margin when someone misses one and you have to honor the price. But with that same efficiency comes worries about surveillance pricing, which is adjusting prices based on an individual shopper’s data. As a result, governments are quickly imposing regulations to monitor the technology. In the U.S., States including New Jersey, New York, Maryland and Connecticut have already introduced laws against surveillance pricing, with New Jersey going as far as freezing new ESL installations.
My advice here is simple: separate your ESL hardware from any personalized tracking logic now, before it’s a compliance problem. Use the technology for what it does well, including promotional updates, inventory accuracy and store-wide price consistency, and you’ll get the operational efficiency without the legal exposure.
Fulfillment still runs on people, not robots
Automated picking robots make for a good demo, but retrofitting most existing store layouts with them isn’t financially realistic. Associates remain the engine behind BOPIS orders and delivery partnerships, and the big question isn’t how to replace them; it’s how to stop handing them multiple screen-bound tools that have notifications that are easily missed and keep their eyes off the customer. Because, let’s face it. Shoppers don’t care if employees are supposed to be on fulfillment only; if they’re on the sales floor, customers will ask and expect their help.
Integrated voice wearables solve this problem. They deliver real-time audio alerts for pickup notifications and driver arrivals, keeping hands free and eyes up. And since they are also a communication device, they’re another tool that keeps lone workers connected to the rest of the store. It’s a small shift in tech but a real shift in both the customer and employee experience.
Customers are showing up better equipped than your staff
This is the one I think has really accelerated over the last few years. Shoppers are entering stores with smartphones, AI‑enabled earbuds and smart glasses that scan products, pull reviews and compare prices before they ever speak to an associate. When they do ask a question, they assume the associate has better tools than they do. Too often, that associate is looking at the exact same public information, or worse — doesn’t even know where to look.
The fix isn’t complicated, but it does require the right infrastructure, clean, structured product data and staff equipped with AI‑enabled headsets connected to your proprietary systems, not the open web. Get that right and your team will stay a step ahead of informed shoppers, allowing them to provide a better in‑store experience.
The best sales floor data source might be your own team
I’m skeptical of camera-based customer tracking, and not just because of the legal and ethical considerations, though that’s part of it. It’s also not the best data source when many retailers already have access to a goldmine of information — and that’s employee conversations.
In stores with smart retail headsets, every time an associate asks where an item is or checks a policy, that’s a data point. At scale, it tells you exactly where your signage is confusing, what’s popular or where your shelf layout doesn’t quite match up with how your customers actually shop. This data is completely owned by you, has no identifying customer data attached to it, and gives you a richer picture of what’s happening in store than a camera ever could.
Security has to grow up alongside everything else
As more in-store technology moves to the cloud, digital sovereignty stops being a nice-to-have and becomes an absolutely necessary piece of your core infrastructure. What does this look like in practice? Local data residency, zero-trust authentication on every device, and in a lot of cases, isolating core store networks from outside connections entirely. I’d rather see a retailer slow down and get this right than rush a connected store rollout on a foundation that is highly susceptible to a breach.
The main takeaway: Stop thinking in tools, start thinking in connected systems
If there’s one shift I’d ask every retail leader to make heading into 2027, it’s this: stop evaluating technology purchases one tool at a time. A standalone screen here, a standalone app there — none of it adds up to a connected store. You need to consider the bigger picture, and how you that technology will work together to build an efficient and welcoming store. One way to do this is through a secure-by-design smart retail communications solution that ties your existing stack together.
That’s the roadmap I’d point any retailer toward: audit what you have, get your security foundations right, prioritize integrated communication, apply AI where it earns its keep, put your conversational data to work and then scale in phases, not all at once.
Building a connected store has never been about jumping on the latest technology bandwagon. It’s about making the technology you already have finally talk to each other, and to your people, so your customers only remember the shopping experience — not the tech.
Want to read the full report? Check it out here or, if you’re ready to start connecting your stores, speak to a member of our team to discover how x‑hoppers can transform not only your in‑store processes, but the customer experience.
