US Tech Forecast 2026 For Retail: Make Every Tech Dollar Count

2026-02-12 · Source: Featured Blogs - Forrester · Field: Retail & Consumer Goods — Retail Technology & Operations, Retail Analytics & Intelligence, Supply Chain & Distribution · Depth: Intermediate, short

Summary

Forrester's "US Tech Forecast 2026: What It Means For Retail" predicts US retailers will increase technology budgets to $113 billion in 2026, a 6.6% year-over-year rise. This growth is driven by the need to modernize infrastructure, adopt AI at scale, and enhance omnichannel experiences, with a clear mandate to improve profitability, resilience, and customer value. Software will constitute 46% of these budgets, focusing on AI-enabled systems, data platforms, and cloud applications for forecasting, fulfillment, and personalization. Retailers like Walmart, Gap, and Best Buy are deploying AI for operational productivity, efficiency, and streamlined customer interactions. Despite increasing AI adoption, a maturity gap exists in formal AI training for both technical and nontechnical staff. Economic pressures from inflation and competition necessitate that all tech investments demonstrate clear profit impact, urging leaders to scrutinize spending and reallocate budgets from underutilized tools.

Key takeaway

For retail IT and business leaders planning 2026 technology investments, prioritize solutions that demonstrably enhance profitability and operational efficiency. Focus your budget on AI and automation for forecasting and fulfillment, while also modernizing in-store and payment systems. Ensure new AI initiatives are paired with robust governance and employee training to maximize value and avoid unnecessary complexity, critically evaluating all spending against profit impact.

Key insights

Retail tech spending will surge to $113 billion in 2026, driven by AI, software, and omnichannel needs focused on profitability.

Principles

• Software dominates retail tech budgets.
• AI adoption requires strong governance and training.
• Every tech investment must tie to profit impact.

Method

Retailers should prioritize platforms for forecasting, fulfillment, and content, invest in associate-facing tools, tighten returns policies, modernize payments, and strategically experiment with emerging technologies like AI agents and synthetic data.

In practice

• Deploy AI "super agents" for operational productivity.
• Equip store teams with unified inventory visibility.
• Use data to selectively offer generous return policies.

Topics

• Retail Technology Investment
• AI in Retail
• Omnichannel Strategy
• Business Profitability
• Emerging AI Technologies

Best for: Executive, AI Product Manager, Product Manager, Director of AI/ML, VP of Engineering/Data, CTO

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Editorial summary, takeaway, and curation by AIssential. Original article published by Featured Blogs - Forrester.