Retail in 2035: My Predictions as a Technology Futurist
Opening Summary
According to McKinsey & Company, global e-commerce sales are projected to reach $7.4 trillion by 2025, representing nearly a quarter of all retail sales worldwide. This staggering statistic barely scratches the surface of the transformation happening in retail. In my work with major retail organizations across North America and Europe, I’ve witnessed firsthand how the industry is being reshaped by technological forces that would have seemed like science fiction just a decade ago. The traditional retail model is collapsing, and what’s emerging is something far more dynamic, personalized, and technologically integrated. We’re moving from transactional relationships to experiential partnerships between brands and consumers. The stores that will thrive in the coming decade aren’t just places to buy things—they’re becoming community hubs, entertainment centers, and technology showcases. As I’ve advised retail leaders from Fortune 500 companies to innovative startups, the consistent theme is clear: adaptation isn’t optional anymore. The retailers who understand this transformation and lean into it will define the next era of commerce.
Main Content: Top Three Business Challenges
Challenge 1: The Personalization Paradox
The first major challenge I consistently observe in my consulting work is what I call the Personalization Paradox. Consumers increasingly expect hyper-personalized experiences, yet retailers struggle to deliver them without crossing privacy boundaries. Harvard Business Review notes that companies that excel at personalization generate 40% more revenue from these activities than average players. However, the gap between expectation and execution is widening. I’ve consulted with retail organizations sitting on mountains of customer data but lacking the AI capabilities to transform it into meaningful personalization. The challenge isn’t just collecting data—it’s creating genuine, individualized experiences at scale while maintaining consumer trust. As Deloitte research shows, 71% of consumers are frustrated when their shopping experience is impersonal, yet the same consumers are increasingly wary of how their data is being used. This creates a delicate balancing act that many retailers are failing to navigate effectively.
Challenge 2: Supply Chain Fragility
The second critical challenge involves supply chain resilience. The World Economic Forum reports that supply chain disruptions have increased by 67% over the past five years, exposing the fragility of global retail networks. In my strategic sessions with retail executives, I’ve seen how traditional supply chains built for efficiency rather than resilience are collapsing under pressure from geopolitical tensions, climate events, and shifting consumer demands. The just-in-time inventory models that once drove profitability have become liabilities in an era of uncertainty. What’s particularly concerning is how these disruptions cascade through the entire retail ecosystem—from manufacturing delays to last-mile delivery failures. Accenture research indicates that 94% of Fortune 1000 companies are seeing supply chain disruptions, with retail being among the hardest hit. The challenge extends beyond logistics to encompass everything from raw material sourcing to final customer delivery, creating a complex web of interdependencies that can unravel with astonishing speed.
Challenge 3: The Experience Economy Shift
The third challenge represents a fundamental shift in consumer expectations. We’re moving from a product economy to what I call the “experience economy,” where the shopping journey matters as much as the purchase itself. According to PwC research, 65% of U.S. customers find a positive experience with a brand more influential than great advertising. Yet most retailers remain stuck in transactional thinking. In my keynote presentations to retail associations, I emphasize that consumers no longer just want to buy products—they want to participate in stories, communities, and experiences. The challenge is that creating memorable experiences requires significant investment in technology, staff training, and physical space redesign. Traditional retail metrics focused on sales per square foot are becoming inadequate for measuring success in an experience-driven marketplace. Retailers must now consider engagement metrics, brand loyalty, and emotional connection—factors that are much harder to quantify and optimize.
Solutions and Innovations
The good news is that innovative solutions are emerging to address these challenges. From my front-row seat observing retail transformation, I’ve identified several technologies that are creating genuine competitive advantages.
First, AI-powered personalization engines are revolutionizing customer engagement. Companies like Amazon and Alibaba are deploying sophisticated recommendation systems that analyze real-time behavior to create individualized shopping experiences. What’s exciting is how these technologies are becoming accessible to mid-sized retailers through cloud-based solutions. The key innovation isn’t just better algorithms—it’s the integration of multiple data streams to create holistic customer understanding.
Second, blockchain technology is transforming supply chain transparency. I’ve advised several retail organizations implementing blockchain solutions to create immutable records of product journeys from factory to store. This not only enhances traceability but also builds consumer trust. Walmart’s food traceability system, built on blockchain, can reduce the time needed to trace food products from days to seconds—a critical advantage in crisis situations.
Third, augmented reality is bridging the gap between physical and digital experiences. IKEA’s Place app allows customers to visualize furniture in their homes before purchasing, while Sephora’s Virtual Artist lets customers try on makeup digitally. These innovations create engagement while reducing return rates—a win-win for retailers and consumers.
Fourth, smart store technologies are creating seamless shopping experiences. Amazon Go’s cashier-less technology represents just the beginning of how computer vision, IoT sensors, and AI are eliminating friction from physical retail. The stores of the future won’t just be places to shop—they’ll be interconnected technology platforms that learn and adapt to customer preferences.
The Future: Projections and Forecasts
Looking ahead, the retail landscape will transform in ways that challenge our current assumptions about shopping. Based on my analysis of emerging technologies and market trends, I project several key developments over the next decade.
According to IDC research, global spending on digital transformation in retail will reach $3.9 trillion by 2026, with AI and machine learning accounting for the largest share of investment. This technological infusion will drive unprecedented efficiency and personalization. I foresee that by 2030, over 50% of retail transactions will be influenced by AI-driven recommendations, creating a marketplace where algorithms understand consumer preferences better than humans do.
The metaverse and Web3 technologies will create entirely new retail channels. Gartner predicts that by 2026, 25% of people will spend at least one hour per day in the metaverse for work, shopping, education, and entertainment. Virtual storefronts and digital products will become significant revenue streams, with luxury brands already generating millions through NFT collections and virtual goods.
Sustainability will shift from competitive advantage to baseline requirement. The World Economic Forum estimates that circular economy business models could generate $4.5 trillion in economic benefits by 2030. Retailers who fail to implement sustainable practices across their supply chains will face both regulatory pressure and consumer rejection.
The most profound transformation will be the emergence of predictive retail. By 2035, I believe retailers will use quantum computing and advanced AI to anticipate consumer needs before they arise, creating a paradigm where products arrive as needs emerge rather than after they’re expressed.
Final Take: 10-Year Outlook
The retail industry of 2035 will be virtually unrecognizable to today’s observers. Physical stores will transform into experiential hubs where technology enhances human connection rather than replacing it. Supply chains will become transparent, resilient networks powered by blockchain and IoT. Personalization will reach molecular levels, with products and experiences tailored to individual biological and psychological profiles. The biggest opportunity lies in creating genuine human connections augmented by technology, while the greatest risk involves failing to adapt to the ethical implications of data collection and AI decision-making. Retail success will require balancing technological sophistication with human authenticity—a challenge that will separate industry leaders from followers.
Ian Khan’s Closing
The future of retail isn’t something that happens to us—it’s something we create through our choices, innovations, and willingness to embrace change. As I often tell the leaders I work with, “The most dangerous phrase in any industry is ‘we’ve always done it this way.'”
To dive deeper into the future of Retail and gain actionable insights for your organization, I invite you to:
- Read my bestselling books on digital transformation and future readiness
- Watch my Amazon Prime series ‘The Futurist’ for cutting-edge insights
- Book me for a keynote presentation, workshop, or strategic leadership intervention to prepare your team for what’s ahead
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About Ian Khan
Ian Khan is a globally recognized keynote speaker, bestselling author, and prolific thinker and thought leader on emerging technologies and future readiness. Shortlisted for the prestigious Thinkers50 Future Readiness Award, Ian has advised Fortune 500 companies, government organizations, and global leaders on navigating digital transformation and building future-ready organizations. Through his keynote presentations, bestselling books, and Amazon Prime series “The Futurist,” Ian helps organizations worldwide understand and prepare for the technologies shaping our tomorrow.
