May 28, 2025

Augmented Reality in Retail: Key Benefits, Trends, and Real-World Use Cases

Anastasiya Talochka · 12 minute read

Augmented reality in retail is rapidly becoming a staple in various economic sectors. In fact, the AR market in retail is projected to skyrocket to $61.3 billion by 2031, with a staggering annual growth rate of 41.4%.

What is Augmented Reality in Retail?

Augmented Reality in retail is a technology that overlays digital content (images, videos, or 3D models) onto the real world through devices such as smartphones, tablets, or AR glasses. This creates an interactive online shopping experience where customers can visualize products in their own space before buying.

Core Technologies Powering AR in Retail

Mobile devices. Smartphones and tablets with AR-capable apps are the most common tools for accessing AR experiences. These devices use integrated cameras and sensors to overlay digital content onto the real world, allowing users to interact with virtual elements seamlessly.
AR software development kits (SDKs). Developers use AR SDKs to build customized AR apps tailored to a retailer's specific needs. These kits provide tools for 3D object tracking, marker recognition, and image recognition, making it easier to integrate virtual elements into the real world.
Computer vision. Computer vision algorithms are crucial for AR, as they enable devices to understand and interpret their surroundings. This technology enhances the overall AR experience by recognizing objects, surfaces, and gestures, allowing natural interactions between users and digital content.
Spatial mapping. This technology creates detailed, real-time 3D maps of physical world. AR apps use this technology to accurately place virtual objects within these spaces, making the user experience feel realistic and immersive.
Wearable technology. Wearable AR devices, such as smart glasses and headsets, offer hands-free interaction and a higher level of immersion compared to traditional mobile devices. With built-in displays and sensors, users can interact with digital content directly within their field of view.
Cloud computing. Cloud-based AR systems handle some of the heavy lifting by using remote servers to process and render complex AR content. This ensures smooth, high-quality AR experiences on a wide range of devices, no matter their individual processing power.

Augmented Reality in Retail

Why Augmented Reality Matters for Retailers

From the earliest days of human history, people have been trading goods, moving from ancient marketplaces to bustling global economies. The art of shopping has evolved with us, ingrained in our very nature. Just like we’ve learned to adapt to new ways of fitting into society, retail stores need to keep evolving and coming up with fresh ideas to stay competitive.

Customer loyalty is as short-lived as a trending hashtag, so businesses can’t afford to get comfortable. Just a few bad quarters can lead to serious trouble. That’s why staying in tune with shoppers' changing expectations is crucial. Retailers need to close the gap between the sales floor and the decision-makers, making sure employees have the tools and flexibility to respond quickly to customer needs.

How AR Works in Retail Environments

AR works by merging real-world views with digital overlays through hardware and software collaboration. Cameras and sensors capture the environment and track device positioning. Then AR software places interactive 3D models or product details onto the live camera feed.

For example, a customer using an AR app can point their phone at an empty living room corner to visualize a sofa’s fit, style, and color. Virtual fitting rooms enable shoppers to try on clothes or accessories without physically handling the items.

The Evolution of AR in Retail

Augmented reality technology has transformed how customers interact with products and brands, revolutionizing the retail experience over the years. Here are the key milestones in the augmented reality retail journey:

AR in Retail Timeline

Early Experiments: Initial AR projects tested the concept’s potential in retail during the late 20th century.
Rise of AR Applications: The 2000s saw widespread adoption with smartphones enabling practical virtual try-ons and product visualizations.
Industry Integration: Through the 2010s, advancements in computer vision and spatial mapping drove broader AR adoption in online and brick-and-mortar stores.
Expansion of Use Cases: Today, AR powers virtual showrooms, interactive advertising, gamification, and personalized AR retail experiences.

AR vs. VR vs. WebAR: What’s the Difference?

Understanding these related technologies clarifies how they reshape retail:

Augmented Reality (AR) blends virtual content into the real world via devices like smartphones or smart glasses, enhancing reality without fully replacing it.
Virtual Reality (VR) immerses users in a fully digital environment, disconnecting them from their physical surroundings, often via headsets. VR offers deep immersion but requires specialized equipment.
WebAR delivers AR experiences directly through web browsers, no app downloads needed. This accessibility makes it ideal for quick, widespread customer engagement with minimal friction.

Consumer Behavior Theories Informing AR in Retail

Successful AR integration aligns with proven consumer behavior insights:

The Planned Behavior Theory

Developed by Icek Ajzen, this theory breaks down behavior into three main factors: what people think about the activity, how much control they feel they have over it, and what they think others expect of them.

In the retail world, TPB helps us understand how a shopper's attitude towards a product, their perceived control over the purchase, and social influences impact their decision to buy a particular brand.

Social Identity Theory

Founded by Henri Tajfel and John Turner, this theory explores how people’s sense of belonging to social groups influences their behavior and preferences.

In retail, this means understanding how consumers' affiliations with certain groups or brands can sway their buying choices. It’s all about the role of identity in shopping decisions. If a brand aligns with a consumer’s social identity, they’re more likely to be loyal to it.

Technology Acceptance Model

Fred Davis created TAM to figure out what makes people accept new technology. This model is super handy for retailers looking to understand why customers are drawn to new tech like augmented reality.

TAM looks at how useful and easy-to-use customers find AR, helping retailers tailor their tech offerings to better meet shopper needs. If AR is seen as valuable and easy to use, customers are more likely to engage with it.

Elaboration Likelihood Model

Created by John Cacioppo and Richard E. Petty, ELM explains how we process information. It can be done in two ways: centrally, where we carefully evaluate the details, or peripherally, where we make quick judgments based on superficial cues.

In retail, this helps us understand how consumers process AR experiences—whether they’re deeply analyzing the features or just reacting to flashy visuals.

By tapping into these theories, retailers can better understand their customers and create shopping experiences that resonate with them. Whether it's through tech adoption or social influences, these insights are crucial for crafting compelling retail strategies that capture and hold customer attention.

How AR Enhances Customer Experience

Augmented reality in retail is transforming more than just the shopping process—it’s altering how customers feel and think about physical products and brands.

Here’s how AR shopping taps into both the emotional and cognitive aspects of the customer experience.

Emotional connection. AR sparks emotions like excitement and curiosity, deepening customer connections.
Thinking and decision-making. AR helps customers visualize their choices, enabling them to make smarter decisions and avoid buyer's remorse.
Remembering better. AR acts like a digital sticky note, making your brand memorable and perfect for those "I know where I saw this" moments.
Chaging perception and behavior. By presenting your products in an engaging, dynamic way, it changes how customers view features, pricing, and value. This is how you drive a new level of understanding and preference.

AR’s Impact on Brand Image

Upgrading brand’s image. AR places your brand at the cutting edge—leading the pack, not following it.
Deepening brand interaction. AR creates a seamless, immersive experience that enhances customer engagement and builds deeper connections, focusing on creating lasting impressions and meaningful interactions.
Setting yourself apart from competitors. In a sea of sameness, AR offers a unique value proposition that captivates customers and sets you apart from the competition.
Building trust and credibility. Virtual try-ons let customers see how things fit, so they won’t feel like they’re playing dress-up with a blindfold. Trust earned, sale made.

How Augmented Reality Driving Online Sales and Conversions

Showcase products in real-time. Customers can see how your products look in their space without any guesswork, making shopping smoother and a lot more fun.
Enable virtual try-ons and try-outs. No more “will it fit?” worries—just click, see, and decide.
Interactive product demonstrations. AR turns static product images into dynamic, hands-on experiences.
Tailoring to individual preferences. From virtual fitting rooms that let customers try on clothes without physically changing to product recommendations tailored to their tastes, AR helps create a shopping journey that feels custom-made for each individual.
Smooth transitions across all retail channels. Whether online or in-store, AR ensures a consistent and cohesive brand experience.
Digital styling assistance. By leveraging digital assistants, you guide customers to the perfect products based on their tastes and preferences.

How Augmented Reality Is Boosting Customer Engagement

Discover products in a whole new way. Augmented reality retail apps make exploring new items engaging and interactive, transforming the shopping process into an exciting adventure.
Gamification and rewards. Incorporate AR displays into the customer experience through games or scavenger hunts. These elements encourage repeat visits and enhance loyalty.
Create emotional connections with your brand. Through immersive storytelling and experiences, AR makes your brand memorable and impactful.
Boost social sharing and virality. Customers are eager to showcase their interactions, amplifying your brand’s visibility through organic social media engagement.
Storytelling & brand narrative. Use AR to bring your brand’s story to life. By integrating AR into your targeted marketing campaigns, you can create immersive storytelling experiences that strengthen emotional connections with your customers.
Deliver personalized engagement. By analyzing customer data and context, AR applications can offer personalized content, promotions, and recommendations. This means each customer gets a shopping experience that feels uniquely suited to them, enhancing their overall satisfaction.

augmented reality in retail benefits

In-Store vs. Out-of-Store AR in Retail Use Cases

In-Store vs. Out-of-Store AR in Retail

In-store AR is about creating an immersive shopping experience for customers who are physically present in your store. Here’s how it works:

Handheld devices: Smartphones and tablets. Online shoppers can use these devices to interact with AR content by scanning product tags or using AR apps. This can bring up additional information, like product details or interactive 3D views.
Wearables: AR glasses or headsets. Customers can try on virtual outfits or view product info right in their field of vision—without having to touch anything.
Special AR Hardware: This includes things like smart mirrors, interactive fitting rooms, and AR-enhanced shop windows. These virtual try on solutions let customers virtually try on clothes, see products in 3D, or interact with digital displays in a way that feels both futuristic and practical.

While in-store AR creates a rich, engaging environment that can significantly boost customer interaction and satisfaction, it does require a bit of an investment. Not every retailer might have the budget for this high-tech setup.

Out-of-store AR extends the AR experience beyond your physical location, allowing customers to engage with your products from wherever they are. Here’s how you can leverage this approach:

Mobile apps: Customers can use your e-commerce app on their smartphones to access AR features. This might include trying on virtual products, like clothes or accessories.
Web apps: Integrating AR into your website means customers can use their desktop or mobile browser to see products in their own space. For example, they could visualize how a piece of furniture looks in their living room before making a purchase.

The out-of-store approach is often more cost-effective and easier when implementing AR compared to in-store AR retail solutions. It also offers the flexibility to reach a broader audience without needing a physical retail space.

For many retailers, the best augmented retail strategy is a combination of both in-store and out-of-store AR. This omnichannel approach ensures that whether customers are shopping online or visiting your store, they have a seamless and engaging experience.

How to Bring AR to Life in Retail Industry

Augmented reality is reshaping the retail landscape, but to fully leverage its potential, it's essential to combine insights from three key areas: retailers, consumers, and emerging technology.

Retailer Insights

Retailers are the masterminds behind setting strategic goals and operational needs for AR in retail. Many brands are now leveraging AR technology to boost customer confidence, increase customer satisfaction, and create immersive experiences.

For instance, AR in-store displays and AR fitting rooms offer a personalized shopping experience, allowing customers to visualize products in real-world settings, whether they are in physical stores or engaging with a retail app.

By understanding how these solutions fit within their resources, logistics, and scalability, retailers can ensure that AR-powered innovations seamlessly and impactfully create in-person experiences that truly resonate.

AR in retail use cases

Consumer Insights

At the heart of every successful augmented reality shopping experience are the consumers. To make an AR app truly impactful, it’s crucial to understand customer experiences, especially what motivates and frustrates them during the shopping process. This includes understanding how they engage with both in-person experiences and digital platforms, such as social media, where AR features are increasingly integrated.

Technology Insights

AR technology requires a strong foundation of technical expertise. From advanced technology like spatial mapping to AR displays in stores, tech plays a pivotal role in bringing AR experiences to life. Many brands are already exploring how AR in retail can transform the way they engage with customers, using AR apps and smart devices to deliver an immersive experience.

When retailers combine their knowledge of customer experiences, consumer expectations, and cutting-edge advanced technology, they can craft AR in retail solutions that elevate the shopping experience. Whether through AR fitting rooms in physical stores or virtual showrooms on a website, AR in retail provides both in-person and virtual experiences that keep shoppers engaged and confident in their purchases. By making these investments, many brands are already seeing a positive shift in customer engagement, loyalty, and satisfaction.

Dont Miss Out on the Next-Gen AR Revolution

Zolak Showroom revolutionizes furniture visualization with immersive next-gen AR features. It enables customers to explore dynamic 3D environments on your website, interact with furniture, and visualize products in their own spaces using their phone’s camera.

Integration? Effortless. Zolak Showroom seamlessly connects with platforms like Magento, Shopify, and BigCommerce, enhancing both online and in store shopping experiences. Retailers can craft virtual showrooms that truly represent their brand and offer extensive product customization.

This innovative AR solution enhances the retail shopping experience by bridging the gap between online and physical shopping, making it easier for customers to make informed purchasing decisions.

FAQ: AR in Retail

What is Augmented Reality (AR) in retail?

Augmented Reality (AR) in retail overlays digital content (like 3D models, animations, or product information) onto the physical world through smartphones, tablets, or AR glasses. It allows shoppers to visualize products in real-world settings before buying, creating a more interactive, informed, and engaging shopping experience.

How can I use augmented reality (AR) to improve the retail shopping experience?

Augmented reality enhances retail by allowing customers to see products in their real-world environment before they buy. It turns shopping into an interactive, visual journey that's more engaging, informative, and fun.

Do I need a physical store to use AR?

No. There are both in-store and out-of-store AR solutions. Mobile apps and web configurators with AR can work without any physical retail space.

What are the benefits of implementing AR in retail?

Increased customer engagement
Higher conversion rates and sales
Reduced product returns
Enhanced personalized shopping experience
Ability to run targeted marketing campaigns

Is it difficult to implement AR in retail?

Implementation has become easier thanks to ready-made solutions and integrations with popular ecommerce platforms like Shopify and Magento. Still, it’s important to set it up properly to fit your sales process.

Which retail sectors use AR the most?

Fashion and apparel, furniture, cosmetics, footwear, and electronics are the biggest users since visualization and virtual try-ons are crucial.

What are the best AR tools or platforms for ecommerce?

Popular AR platforms include:

Shopify AR – Built-in support for 3D & AR via USDZ models;
Zolak – AR and virtual showroom solution for furniture retailers;
Vectary – WebAR for product visualization with no app required;
8thWall – Offers powerful WebAR without downloads;
Snap AR – Especially strong for beauty, fashion, and social commerce;
Zolak – Great for AI-based product visualization;
ROAR AR – Plug-and-play AR for retailers, good for product demos.

These tools vary in complexity. Some require 3D models, others offer drag-and-drop interfaces. Most integrate well with Shopify, WooCommerce, or Magento.

How do virtual try-on solutions work?

Virtual try-on uses your camera (often with face, hand, or body tracking) to overlay digital products—like glasses, lipsticks, or sneakers—on your image in real time. It’s powered by AR SDKs or browser-based WebAR. Brands can integrate it via apps, WebAR platforms, or third-party plugins. This reduces return rates and boosts confidence to buy.

Is AR expensive to implement for small or medium-sized retail brands?

Not necessarily. There are entry-level options that don’t break the bank:

WebAR can start at $100–$500/month depending on traffic and features.
AR model creation ranges from $30–$150 per product, depending on complexity.
Tools like Zolak offer free trials and plug-and-play interfaces, no dev team required.

ROI often comes from higher engagement, reduced returns, and increased sales, which offsets the cost quickly.

What’s the difference between AR and VR in retail?

AR augments your environment (e.g., place a chair in your actual room).
VR immerses you in a new one (e.g., explore a virtual store or showroom).

In retail, AR is for real-world previewing (try-ons, room placement), while VR is for immersive experiences (virtual stores, brand storytelling).

How does AR increase customer engagement and reduce returns?

AR boosts engagement metrics like time-on-site and interaction rate by up to 3x. Shoppers who interact with AR tools are 66% more likely to convert, according to Shopify. As for returns, AR helps people better understand product size, fit, and color leading to 25–40% fewer returns in categories like furniture and fashion.

What are some successful examples of AR in retail?

IKEA Place – Lets users preview furniture in their homes.
Sephora Virtual Artist – Try on makeup in real time.
Warby Parker – Virtual glasses try-on via app.
Nike Fit – AR scans your feet for the perfect shoe size.
Zolak Showroom – SaaS immersive furniture customization and placement.

These brands report measurable results: higher conversion rates, longer session times, and fewer returns.

How do I get started with implementing AR in my retail business?

Start small and scale:

Choose your product(s) – Start with bestsellers or high-return items.
Create 3D/AR models – Use photogrammetry or AR SaaS platforms.
Pick a platform – WebAR (like Zolak or Vectary) or native app SDK.
Embed into your site – Many plugins exist for Shopify, WooCommerce, Magento.
Track results – Measure time on page, conversions, and returns.

Free trials and no-code tools make this easier than ever.

Is AR just a trend or a long-term strategy for retail?

AR is not a fad. It's evolving into a core ecommerce strategy. Gartner predicts 100 million consumers will use AR for online and in-store shopping. Platforms like Apple Vision Pro and Meta are doubling down on spatial commerce. For younger audiences (Gen Z), AR is already expected, not optional.

How can I use AR to increase customer engagement in my online store?

Integrate interactive AR experiences (like virtual try-ons or room placement tools) directly into product pages. Use AR hotspots, zoom-ins, and 3D spin models to keep users engaged longer. Shoppers spend 2–5x more time interacting with AR-enabled products.