As 2025 comes to an end – we can reflect on how retailers have embraced AI. As we look ahead to 2026, the next competitive edge will come from creating continuous feedback loops that link every step of the customer journey: from product data to store operations to mobile engagement. Imagine a shopper finds the perfect item through a chatbot but drops off because the product data was inconsistent or the mobile experience was clunky. That friction is exactly what these loops aim to eliminate. The winners in 2026 will be able to connect these touchpoints into a single real-world intelligence loop, turning isolated AI tools into a cohesive system. The Innovators Showcase at NRF’s annual Retail’s Big Show features several companies that are proving that these ideas can become a retail reality.
Stay up-to-date on the latest news and articles about Retail's Big Show.
The loop begins with product data. Retailers often grapple with fragmented, inconsistent catalogs that slow launches and hurt conversion. A new generation of AI tools transforms unstructured brand and manufacturer information into AI‑ready product knowledge. For example, atronous.ai’s product data intelligence engine leverages machine learning, computer vision and semantic enrichment to extract, normalize and enrich product data. By translating messy inputs into a structured knowledge graph, the platform automates catalog and merchandising workflows. This turns product information into a strategic asset for agentic commerce and enables agentic systems to understand and recommend products across channels for improved efficiency, faster onboarding and better discovery. With clean product data in place, the loop can advance to the next step: deciding where those products should live in the physical world.
Building on this foundation, physical intelligence platforms help retailers make high‑stakes decisions, like location and assortment, with confidence. Instead of relying on static data or gut instinct, these tools curate tangible, real-world signals like mobility patterns, demographics, competition, weather, and consumer sentiment and combine them with a retailer’s own data. Propheus, a physical AI platform, constructs a “Digital Atlas” of the world that scores locations and simulates scenarios so merchandisers can open stores in the right places and stock them with the right products. In one market expansion pilot, a coffee chain using Propheus identified 23% more viable zones and saw a 15% increase in revenue. Once stores and assortments are optimized, the next challenge is ensuring associates deliver great experiences.
With products and stores optimized, the final step is ensuring every shopper interaction generates insights that feed back into the system. The loop closes with mobile engagement. Mobile commerce is becoming more common in the e-commerce space, yet many shopping journeys may get trapped in slow downloads or clunky web experiences. Reactiv.ai reimagines mobile by turning ad clicks, QR scans, and LLM search results into instant, app-like experiences that don’t require downloads. These “Clips” enable brands to re-engage shoppers with push notifications and deliver up to 65% lower customer‑acquisition costs and 3x higher conversion rates. By capturing new behavioral signals on mobile, Reactiv feeds data back into the loop, making the system truly continuous.
Real-world intelligence loops aren't just a buzzword, they’re real and being activated. They are the blueprint for retail that works end-to-end, from production and planning to execution and customer experience. By turning product data into AI-ready knowledge, mapping demand with physical AI, and making mobile moments seamless, retailers can transform every touchpoint into a new competitive advantage.
The most successful companies in 2026 won’t simply be the fastest to adopt new technology. They will be the ones that design systems where humans and AI learn from one another in real time, adapting to changing customers, markets and behaviors. Embracing these intelligence loops will ensure retailers are prepared for what’s next, and in a position to lead and innovate.
To see these ideas in action and start building your own loops, join us at NRF 2026 Retail’s Big Show.
Greg Merrill serves on NRF’s Innovation Advisory Committee and is President of Futura Fragua, a strategic advisory firm focused on growth, transformation and innovation across retail, consumer and emerging technology.
