What’s new in AR this month? In August 2025, Nike launched its AR-enabled “Fit Anywhere” feature, letting shoppers try sneakers virtually at home before ordering. Sephora also announced an expansion of its AR-powered “Virtual Artist” tool to include skincare analysis, enabling customers to preview product results instantly. These updates highlight how augmented reality (AR) is driving the next wave of consumer engagement in retail, both online and in-store.
Why AR in Retail Matters
Retail has always been about the customer experience. Yet, traditional shopping—whether online or offline—leaves gaps. Online buyers often struggle to visualize products, while in-store customers may want more personalized recommendations. AR bridges this gap by blending physical and digital shopping journeys. It allows customers to see, test, and engage with products in real time, boosting confidence and reducing returns.
Core Applications of AR in Retail
1. Virtual Try-Ons
Fashion and beauty retailers lead the way in AR adoption. Shoppers can point their phone at themselves to try on clothing, accessories, or cosmetics without entering a fitting room. This reduces hesitation in online shopping and increases conversion rates. By 2025, AR try-ons are expected to become standard in e-commerce apps.
2. Product Visualization
Furniture, home appliances, and electronics are often hard to picture in customer spaces. AR solves this by projecting items into real environments. IKEA and Wayfair let customers place sofas, lamps, or beds into their homes virtually, ensuring the right fit before purchase. This reduces costly returns and increases satisfaction.
3. Interactive In-Store Experiences
Brick-and-mortar stores are using AR to stay competitive. Shoppers can scan products for immersive details, tutorials, or AR-guided promotions. For example, grocery chains overlay recipes when customers scan ingredients, while clothing stores provide styling suggestions anchored in the fitting room.
4. Personalized Recommendations
AR-powered apps combine customer data with immersive overlays. A shoe store might highlight models in the shopper’s size and style preferences. Cosmetic apps analyze skin tone and recommend shades instantly. This personalization creates stronger brand loyalty.
5. AR-Enhanced Marketing Campaigns
Retailers use AR in campaigns to engage audiences beyond the store. From interactive billboards to QR-triggered experiences, AR brings static marketing to life. This not only entertains but also drives measurable engagement and sales uplift.
Real-World Examples in 2025
- Nike Fit Anywhere: Shoppers virtually try sneakers with accurate size recommendations based on foot scans.
- Sephora Virtual Artist: Expanded to include skincare analysis and previews of treatment outcomes.
- IKEA Place: Customers place furniture at scale in their homes, visualizing how products integrate with existing décor.
- L’Oréal: Uses AR mirrors in stores to let customers test makeup shades instantly.
- Amazon AR View: Integrated into the mobile app, allowing users to visualize thousands of products at home.
Quick Facts & Data Insights
- 71% of consumers say they would shop more often if AR were available in stores or online.
- Retailers using AR report a 25% increase in conversion rates compared to non-AR experiences.
- AR reduces product returns by up to 35%, especially in fashion and furniture categories.
Benefits of AR in Retail
- Confidence: Buyers see exactly how products look and fit before purchase.
- Engagement: AR keeps customers exploring and interacting longer.
- Reduced returns: Fewer mismatches between expectations and reality.
- Brand differentiation: Innovative AR experiences set retailers apart from competitors.
Challenges to Adoption
- Hardware dependency: Many experiences rely on smartphones; widespread AR glasses adoption is still years away.
- High content costs: Creating accurate 3D product models requires significant investment.
- Customer education: Some shoppers may hesitate to adopt new AR shopping tools.
- Integration: Retailers must align AR systems with e-commerce, inventory, and CRM platforms.
Best Practices for AR in Retail
- Keep interfaces intuitive: Ensure shoppers can access AR features without steep learning curves.
- Prioritize top products: Start with bestsellers or high-return categories to maximize impact.
- Measure outcomes: Track AR’s effect on sales, dwell time, and return rates.
- Blend online and offline: Offer AR both in-store and through mobile apps for a seamless journey.
Looking Ahead: AR in Retail by 2030
By 2030, AR will be integral to every major retailer. Smart glasses will allow hands-free product visualization in stores, while online shoppers will enjoy hyper-personalized AR showrooms generated by AI. Retail spaces themselves will adapt dynamically, shifting layouts and offers in real time based on AR data. The fusion of AR, AI, and digital twins will create shopping experiences that are not only convenient but also deeply personalized and sustainable.
Key Takeaways
- AR in retail transforms shopping into an immersive, personalized experience.
- Major brands like Nike, IKEA, and Sephora are already proving its value in sales and engagement.
- Challenges remain, but investment in AR content and integration is accelerating.
- By 2030, AR will be a standard expectation across online and in-store retail channels.
