Have you ever wanted to see what some clothes would look like on you without going to the stores or getting a picture of how the furniture would fit into your house design before buying it?
If you’re a frequent shopper, chances are you’ve already encountered these interactive tools while browsing your favorite retail apps or websites, because businesses are increasingly integrating augmented reality (AR) in their physical and online stores. According to ITfirms, global augmented reality in retail markets will reach $62.3 billion in valuation by 2033.
Augmented reality in retail has brought a major change in the way customers experience shopping, from bringing a new level of clarity to online and in-store purchasing to helping businesses make shopping fun and interactive for users through virtual try-ons, 3D product reviews, and more. AR is surely making decision-making easier for consumers.
So, if you are looking to increase sales, reduce returns, and gain customer loyalty, augmented reality will help you achieve it. AR will allow you to build trust and connections with your consumers by offering an engaging shopping experience.
For instance, if a customer were able to have a look at what the furniture would look like in their house, there’s an increased chance of them purchasing from the shop or online store and not leaving empty-handed. This will not only boost sales, but the customer will keep coming back for the same experience.
Still not sure about how augmented reality in retail will help grow your business?
Let’s have a look at how augmented reality is changing the retail industry for good. In this blog, we’ll go through the benefits it offers and industries adopting it, to real-life examples and tips for getting started.
There is no secret in the fact that traditional retail shopping was long dead, especially during COVID, even small businesses shifted their strategies to e-commerce websites, adhering to customer demands. Traditional retail shopping has become boring, and although online shopping is in, the issues related to it, like convenience gaps and customer service issues, are becoming evident over time.
Let’s have a look at the problems in traditional retail marketing:
Even if you are not a frequent shopper, you probably know how difficult it is to make choices while shopping. Customers get confused when shopping online and head to stores to be sure if purchasing something they like is a good decision or not, but stores end up being out of stock, out of sizes, or the variety shown in the online store is not available. In both online and offline settings, shoppers often feel unsure about their choices.
Online stores often have too many options for one search and 2000 + results, which sometimes do not even match. This makes customers too overwhelmed, and they might experience decision fatigue. This is called the paradox of choice. Instead of feeling great about too many options available, customers feel exhausted, which leads to them not purchasing anything. Some popular examples of stores that have too many options are Amazon, Walmart, and other similar stores.
Often, when people buy stuff online or even in stores, they find that the size doesn’t fit, the clothes don’t look good on them later, or the furniture doesn’t suit their bedroom style. Even if there are fitting rooms in the stores, the places are sometimes too crowded, and customers have to wait a long time to try on clothes. Items like furniture or decoration pieces are also displayed aesthetically in stores, but it is hard to imagine how they would look in the customer’s own house. Customers might not be able to make the right decision and end up returning items.
Sometimes online shopping is deceiving; you may believe that a shade of makeup or lamp may appear to be what you have needed, but upon receiving it, the shade does not complement your skin tone, and the light is smaller than what would accommodate your table. With online shopping, one cannot be sure whether the product you are interested in buying will meet your needs or not.
Imagine, you are trying to purchase something online but are unsure if it suits you or not and then you decide to step out and visit the store to be sure, and then you find yourself in a highly crowded place, no space in the fitting rooms, limited sizes available, a terrible shopping experience in short. You might leave without buying anything and would not want to leave the comfort of your home for shopping again. Store inconvenience is a rising issue in retail nowadays.
Whether you are shopping in-store or online, shopping experiences can be dull and transactional if they are not engaging and enjoyable. The same old generic interface and layout of stores might be boring now, as people are more into gamification, visuals, and fun experiences.
There are various issues in traditional and online shopping, from size issues to unsatisfactory experiences, highlighting a growing gap between customer expectations and what retailers deliver. Consumers today want more than just transactions; they want convenience, confidence, and connection. This is where augmented reality steps in as a game-changer, blending the best of both worlds by making shopping more immersive, personalized, and intuitive. As these challenges continue to evolve, AR offers proven solutions for businesses to reduce return rates and build customer loyalty. According to Brand XR, augmented reality in retail has reduced return rates by 25% – 40% and increased the conversion rate by 60% – 80% for businesses.
As shoppers become more tech-savvy and experience-focused, brands are turning to augmented reality to meet and exceed those expectations. Augmented reality in retail introduces a new level of interactivity and personalization, allowing retailers to bridge the gap between physical and digital shopping environments.
Let’s have a look at the augmented reality benefits for the retail industry:
AR enables customers to try on clothes, accessories, or makeup virtually using their smartphones or in-store mirrors. This eliminates the need for fitting rooms and helps reduce uncertainty in purchase decisions.
Instead of traditional posters or signs, AR-powered displays invite users to engage with products through their phones or tablets. Whether it’s scanning a shoe to see different color options or watching a 3D animation of how a gadget works, the experience becomes far more memorable.
Retailers can create digital showrooms where customers explore entire collections virtually. This is especially useful for large or luxury items like furniture, allowing shoppers to walk through and interact with products from the comfort of home.
AR in the retail industry lets shoppers see how a product fits into their space in real time, placing a couch in their living room or viewing how a light fixture looks in their kitchen, bringing clarity and confidence to online purchases.
By leveraging user data and preferences, AR experiences can be customized for each shopper. With AR development shopping journey becomes more relevant and enjoyable, from tailored product suggestions to personalized greetings.
Beyond clothing, AR allows for fittings of glasses, shoes, watches, and even hairstyles. These fittings help consumers find the right size, color, or style, minimizing returns and improving satisfaction.
Detailed 3D models of products give customers the ability to inspect every angle, zoom in for texture, or interact with different features, something static images simply can’t provide.
AR wayfinding tools guide customers through large stores or malls, helping them locate products, explore deals, or follow curated shopping routes, enhancing convenience and saving time.
With AR, product packaging becomes an interactive portal. Scanning a box or label can reveal tutorials, brand stories, or promotional content, turning simple packaging into a rich content experience.
At its core, AR encourages shoppers to explore, interact, and spend more time with a brand. This deeper engagement not only boosts conversion rates but also strengthens long-term brand loyalty.
Retailers that are adding augmented reality in retail are no longer just selling products; they’re offering meaningful, interactive experiences that build trust and excitement. For brands looking to innovate and create such immersive journeys, partnering with digital experience experts like DigiTrends can unlock the full potential of AR in retail.
Whether you’re aiming to elevate your online store or upgrade your in-store experience, now is the time to reimagine what shopping can be.
Many forward-thinking brands have already integrated AR into their retail strategies, creating standout experiences that blend innovation with practicality. Here are some notable examples of how companies are using AR to engage customers and enhance the shopping journey:
IKEA’s AR app allows users to virtually place true-to-scale 3D furniture in their own space using a smartphone camera. AR has helped IKEA boost its sales by 35% as it helps customers visualize size, fit, and style in real time, significantly reducing buyer hesitation and returns.
Sephora’s Virtual Artist tool lets users try on makeup virtually through their mobile app. From lipsticks to eyeshadows, shoppers can see how products will look on their face instantly, making it easier to experiment and choose confidently.
Nike introduced AR scanning in its mobile app to help customers find the perfect shoe size. Using smartphone cameras, the tool measures the user’s foot and recommends the most accurate size across different shoe models, reducing sizing issues and returns.
Warby Parker offers a virtual try-on feature that lets customers see how different frames look on their face before buying. The seamless AR experience removes the need for physical trials while still giving users full confidence in their purchase.
L’Oréal acquired AR company ModiFace to offer virtual try-on experiences across multiple beauty brands. Customers can test out hair colors, foundations, and skincare products using their mobile devices, both online and in stores.
Adidas has experimented with AR-enabled store displays that allow shoppers to unlock hidden content, view product specs in 3D, and even access styling tips by scanning items with their phones, adding a digital layer to the physical shopping experience.
These real-world applications show that AR isn’t just a trend; it’s a proven strategy being used by some of the world’s biggest brands to elevate retail. As more businesses follow suit, the opportunity to innovate is greater than ever.
With the right expertise and vision, companies can create their own unique AR experiences that drive engagement, boost sales, and build lasting customer loyalty.
Augmented Reality in retail has moved beyond novelty; it’s becoming an essential part of the modern retail experience. In 2025, shoppers are no longer satisfied with flat product listings or static displays; they seek interactions that are intuitive, immersive, and personalized. AR shopping experience delivers on these expectations by enabling virtual try-ons, 3D product previews, and real-time visualizations that make shopping both smarter and more enjoyable.
For retailers, incorporating AR isn’t just a tech upgrade; it’s a strategic decision that impacts customer satisfaction, brand perception, and long-term growth. With the right tools and creative approach, businesses can create an immersive shopping experience for their customers. Those exploring how to bring such interactive experiences to life will find great value in collaborating with digital innovation teams like DigiTrends that understand both the technology and the user experience deeply.
