The real edge retailers have that AI can’t replace

Plus: Retail tech to watch | How brands drive IRL buzz

AI is now table stakes. As the lightning-fast technology will soon be adopted by most retailers, the story of 2026 is how to work with it. To win, retailers must work it into all facets of their business while also leaning into the human element of what makes stores special. This week, we’ll get into what leading retailers are doing on both fronts.

But first, check out how one entrepreneurial creator makes and sells clothes from upcycled festival tents.

Trade Secrets
[ FIRST GLANCE ]

Face time: Some retailers’ facial recognition technology may be pushing privacy limits.

Under the influence: Brands use influencers and celebs for IRL moments.

Is Amazon the new Walmart? By the looks of its new supercenter, yes. 

By merit. A new exam-based credential helps SMBs compete for corporate contracts. 

Who’s that girl? Meet downtown NYC’s small business whisperer.

Trade Secrets
[ THE TOP LINE ]

How REI’s sales associates stand out in the age of AI

REI CEO Mary Beth Laughton, who spoke at the National Retail Federation’s 2026 Retail’s Big Show this past weekend, acknowledged AI, one of the retail convention’s main themes, as “table stakes” for businesses today, but chose to highlight the importance of the outdoor chain’s human workforce, known as “green vest” store associates. Only they can provide real human connection and shared life experiences with customers in a way that resonates. As she put it, AI “hasn’t gone hiking. It hasn’t gone camping.”

Why this matters: As more companies inevitably adopt AI, the human connection and the idea of trust and lived experience will become the differentiating factor for businesses that resonate with consumers. (Retail Dive)


How brands experiment with AI to influence path to purchase

Also headlining at NRF’s Retail’s Big Show were leaders from COS, Sephora and Zalando, there to give inspiring insights to thousands of smaller retailers in attendance. Fashion retailer Zalando uses AI to create animated, eye-catching product videos to replace photos and better attract the eyeballs of Gen Z customers. Sephora’s Skin Scan technology, released in 2012 and relaunched in 2021, assists sales associates in matching customers’ foundation shades. The beauty retailer just launched Smart Skin Scan, which allows customers to get a skin consultation and address skin concerns via an uploaded selfie. COS is using AI to focus on content diversity and media effectiveness, as well as advanced analytics. 

Why this matters: Any way you slice it, AI can help. It’s just a matter of figuring out what works for your business, so don’t be afraid to experiment; even big companies don’t get it right the first time. (NRF)

Trade Secrets
[ THE LOWDOWN ]

What did the holiday 2025 sales results tell us? 

What happened to Saks Fifth Avenue? 

U.S. household wealth hits a record $180T

What are the retail real estate trends of 2026?

Shoppers want AI help 24/7, study finds

THE THINK TANK

What  drives independent retail in this era of change?

Jen Burke, chief revenue officer at wholesale marketplace Faire, which connects indie retailers with vendors from around the world, joined Retail Touchpoints’ “Retail Remix” podcast to share what the influential retail cohort can do to thrive in 2026. Shifting buying strategies, navigating economic pressures and responding to fast-moving trend cycles are some tactics. She also touts Faire’s tools to better manage cash flow, discover products and respond to customer demand, and teases its new fulfillment solutions. 

“Our retailers are so extremely resilient. And I think because of their size—they are small—they can be much more agile and flexible and pivot to strategies way more quickly than big box or e-commerce can." –Jen Burke, Chief Revenue Officer of Faire 

Why this matters: Taking advantage of online wholesale platforms does more than just net you some new vendors. Everyone from PayPal to QuickBooks to US Bank is gunning to become an all-in-one solution for small businesses. (Retail Touchpoints)

Trade Secrets
[ THE DOWNLOAD ]

A peek at the latest retail tech at NRF’s  Retail’s Big Show

Korean electronics giant Samsung always has one of the biggest booths at Retail’s Big Show, and among the new retail tech they unveiled were: lighter, thinner 3D screens for in-store display; smart and durable headsets for immersive training and increased store associate productivity; “The Wall,” an all-in-one, 136-inch MicroLED display and new partnerships with apps and platforms to integrate into their hardware and devices, such as one that integrates video livestreams.

Why this matters: Remember when digital cameras and flat screen TVs seemed out of reach? These inventions may seem futuristic now, but they’re all coming to a store near you sooner than you think (and hopefully at accessible prices). (Samsung

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The SKUpe is curated and written by Marcy Medina and edited by Bianca Prieto.