Article
Augmented Reality and Its Role in Retail Strategy Innovation
In an era defined by hyper-digitalisation and immersive technologies, augmented reality (AR) has emerged as more than just a marketing gimmick, it is rapidly becoming a strategic imperative in the evolving landscape of retail innovation. This paper critically explores how AR functions as a catalyst for retail strategy transformation, not merely enhancing consumer experience but fundamentally reshaping organisational models, brand engagement, and value creation. Drawing from multidisciplinary perspectives in retail management, consumer psychology, and emerging technology, this study develops a comprehensive framework to understand AR’s role in strategic innovation. The research employs a mixed-methods empirical approach, integrating primary data from retail consumers and professionals with robust statistical analysis via structural equation modelling (SEM). The findings suggest that AR contributes significantly to competitive differentiation, customer journey optimisation, and data-driven personalisation — all while challenging traditional retail paradigms. Importantly, the study reveals a strategic convergence between AR integration and agile business model adaptation, with implications for both legacy retailers and digital-native brands. This paper contributes to theoretical advancement in retail innovation literature and offers actionable insights for practitioners navigating the complexities of post-pandemic consumer expectations, digital fatigue, and omnichannel fluidity.