Who is Els Breugelmans?

Professor Dr. Els Breugelmans is a Full Professor at the Faculty of Economics and Business of KU Leuven, where she is affiliated with the research unit Marketing Management. Her scientific research focuses on empirically modeling retail issues, including topics such as omni-channel purchasing behavior, retailer-manufacturer relationships, and loyalty programs. She often collaborates with industry partners to translate research into actionable strategies, helping businesses navigate the evolving retail landscape.

Retail in 2026 will be defined by a delicate balance: embracing technological innovations while remaining profoundly human at the same time. Technology, Artificial Intelligence (AI) and data analytics will continue to penetrate in retail organizations, driving operational efficiency and/or improving customer experience. Yet, technology will not replace humans – it will strengthen employees. It will enable them to work smarter, focus on meaningful interactions, and deliver added value where it matters most.

Technology in symbiosis with human insights can also help to meet the high expectations of customers. These customers want frictionless convenience, value personalization, appreciate inspiration, and are social beings that like fun and immersive experiences – sometimes even in the same shopping trip. Retailers who have a deep understanding of their customers and master how to blend technology with human capital will be the ones that thrive.

AI as an enabler, not a goal

AI will no longer be a buzzword but a backbone for retail organizations. AI will help retailers to become more efficient and/or to better understand customers and anticipate their needs. From predictive assortment planning to dynamic pricing, personalized promotions or tailored communications, AI will enable superior customer experience. AI can also remove repetitive tasks and make employees and operational processes more efficient, freeing employees to focus on higher-value activities.

However, the power of AI depends on whether it solves a real customer and/or employee problem and generates value. Its value also critically depends on high-quality data and ethical oversight. Collecting data is only the starting point of a process that also includes analysis, interpretation and decision-making. AI can help in processing and examining data for patterns, thereby generating meaning and insights. But, a human eye remains essential: without clear guidelines and boundaries, AI risks biases, flawed assumptions, or even customer exclusion.

The winning formula? AI-driven intelligence combined with human oversight to ensure relevance, fairness, and trust.

Think customer, not channels

The era of channel-centric strategies is over. Stop asking “How do we push online or offline?” and start asking “What does my customer need or want?” Consumers don’t think in channels – they think in solutions and seamlessly navigate between touchpoints. Retailers must embrace customer journey thinking, designing integrated experiences that remove friction and add value at every step. Walking the pain, looking into the mirror and truly understanding how customers interact with the retail organization is the secret to becoming future-proof. Technology, AI and data analytics will support and accelerate this shift from channel to customer thinking, but once again the human touch will remain irreplaceable.

TIP 1: Start small with AI and focus on existing data.

Most retail organizations already have a lot of information coming from loyalty cards, point-of-purchase transactions, online orders. Do not rush into expensive, complex technological projects, but begin with that data you already have. Use AI tools to extract actionable insights. Start with simple pilots that optimize customer experiences or improve operational excellence. This approach minimizes risk, builds internal expertise, and delivers quick wins that pave the way for larger transformations.

TIP 2: Think customer, not channels.

Customers do not care whether they interact with organizations via an app, a website, or in a store. They care about consistency. They want interactions that are convenient, relevant and seamlessly integrated. Therefore, map the customer journey and identify pain points. Do not optimize isolated channels but optimize across channels. Talk to your customers, understand what frustrates them or which problems they experience. The mindset shift – from channel-first to customer-first – will make organizations future-proof and drives sustainable growth.

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