The Transformation of Retail Through Digitalization: Analyzing the Impact of Online-Offline Integration and Augmented Reality on Consumer Shopping Experience

Abstract

The retail industry has especially changed in the last three decades by the effect of the technological change. This study examines the impact of two major innovations: two emerging issues, namely the omnichannel retailing and the augmented reality (AR). Omnichannel retailing combines online and offline selling pointers wherein consumers get a completely integrated purchasing experience whereas AR makes product differentiation easy and allows consumers to engage with products. The concern of this research is to examine how these technologies affect consumers’ behavior, satisfaction, and loyalty. Therefore, the study adopted a mixed research method, where data was gathered through online questionnaires, interviews and case studies of organizations such as Walmart, Nordstrom, IKEA, and Sephora. Based on the research, there is a suggestion that the synchronization of online and offline purchase touchpoints enhances the shopping convenience and customization; meanwhile, the application of AR enhances the interaction and the confidence of the purchase. Some of other issues that were realized include data privacy and consistent branding throughout the communication channels. This research establishes that these technologies’ use in strategic processes improves consumer shopping experiences, but more research is required to investigate long-term outcomes and new directions for the retail industry.