News hook, August 2025: The National Retail Federation’s Retail Innovation Summit 2025 unveiled its “AR Retail Readiness” index, showing that 57% of top-performing retailers are now using AR in store design. With consumer expectations for immersive experiences higher than ever, AR in retail store design is no longer an experiment—it’s a competitive advantage.
What is AR in retail store design?
AR in retail store design uses augmented reality to plan, visualize, and optimize store layouts, displays, and customer flows before physical changes are made. By overlaying virtual fixtures, signage, and product arrangements on the actual store space, designers can test concepts and see their impact instantly.
Why AR is reshaping retail design
- Instant layout changes: Test new product placements in minutes.
- Cost savings: Reduce build-out errors and material waste.
- Customer-centric design: Simulate real shopping journeys and interactions.
- Faster approvals: Present full-scale designs to stakeholders on-site.
Quick Facts
- Adoption rate: 57% of top retailers use AR for store planning in 2025.
- Conversion boost: AR-driven layouts have shown sales increases of up to 22%.
- Case leaders: Brands like Nike, IKEA, and Sephora integrate AR store planning into regular refresh cycles.
AR workflows in store design
1. Store scanning and modeling
Using LiDAR-equipped devices, designers scan the existing store space to create a precise 3D model. This model becomes the AR canvas for experimentation.
2. Virtual merchandising
AR allows the placement of virtual shelves, mannequins, digital signage, and product displays. These can be moved, resized, or replaced instantly without physical effort.
3. Traffic flow simulation
- Predict customer movement patterns.
- Test navigation ease and aisle clearance.
- Identify congestion points and optimize paths.
4. Stakeholder collaboration
Managers, merchandisers, and marketing teams can join AR sessions to approve designs in real time, reducing communication gaps.
Enhancing customer experience with AR
AR isn’t just for the design team—it’s for customers too. In-store AR apps can:
- Guide shoppers with interactive maps and product info overlays.
- Enable virtual try-ons for apparel, accessories, and cosmetics.
- Provide product stories and brand experiences at the point of sale.
AI + AR for data-driven design
AI tools can analyze customer behavior data to suggest layout changes. AR then visualizes those suggestions at full scale in the store environment.
Examples
- Placing high-demand products in high-traffic areas.
- Adjusting lighting and signage to guide customer attention.
- Rotating displays seasonally based on AI sales forecasts.
Case studies
Nike Flagship Store
Used AR to reconfigure the footwear wall for better flow and increased dwell time, resulting in a 15% sales lift.
IKEA Concept Store
Tested multiple layouts in AR before physical build-out, reducing construction time by 30%.
References
Key takeaways
- AR reduces risk: eliminating costly layout mistakes.
- Customer-first approach: designs based on real behavior data.
- Faster execution: from concept to in-store reality in weeks.
