The State of Retail & eCommerce in 2026: From Transactions to Connected Commerce

By Ran Cohen, Chief Strategy Officer, Perion

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Retail and eCommerce have always been shaped by change, but the pace heading into 2026 feels fundamentally different. What was once a series of incremental digital upgrades has become a structural shift in how retailers monetize attention, engage shoppers, and partner with brands.

Across conversations with retailers, brands, and agencies, one theme comes up consistently: retail media is no longer just a revenue line, it’s becoming a core operating layer of modern commerce.

The retailers that will outperform in 2026 won’t be the ones chasing every new format or platform. They’ll be the ones who understand how to connect data, media, creative, and measurement into experiences that work across the entire shopper journey.

Retail Media Grows Up: Performance Was the First Act

Retail media scaled quickly because it delivered what the market needed: measurable performance tied directly to sales. Sponsored listings, onsite display, and closed-loop reporting unlocked budgets fast, and for good reason.

But that performance-first foundation is now table stakes. As growth rates normalize and competition intensifies, retailers are running into a ceiling. Performance budgets alone won’t fuel the next phase of growth. The real upside lies in brand investment, and brand dollars come with very different expectations: premium environments, compelling creative, omnichannel reach, and consistent measurement.

This year, the question won’t be “Does retail media work?” It will be “Can your retail media offering support full-funnel brand growth?”

Retail media’s next phase isn’t about more ad formats—it’s about connecting data, creative, and measurement across every shopper touchpoint to deliver full-funnel growth that brands can trust and scale.

The Expansion of Commerce Beyond the Site

One of the most important shifts underway is where commerce media shows up.

Retail media is no longer confined to the website or app. It’s expanding across:

• Connected TV (CTV) and online video

• Digital out-of-home (DOOH) near stores

• In-store screens and audio

• Mobile, social, and streaming environments

This expansion reflects how consumers actually shop – discovery happens everywhere and purchase decisions are now shaped long before someone lands on a product page. Retailers that connect offsite and in-store media with onsite conversion gain something powerful: continuity. Brands can tell a story, build consideration, and drive action without fragmenting the shopper experience or the way performance is measured.

AI Becomes the Infrastructure Layer

As commerce media scales, complexity is rising just as fast. Fragmented channels, disconnected creative, and inconsistent reporting create friction for both retailers and advertisers.

This is where AI moves from “nice to have” to essential. In 2026, AI isn’t just optimizing bids or placements – it’s powering how creative adapts in real time. Audience signals, location, weather, inventory, pricing, and timing can all dynamically shape messaging across channels. The result is advertising that feels less like an interruption and more like a service.

Importantly, this isn’t about personalization for its own sake. It’s about relevance at scale – delivering messages that make sense in the moment and then proving their impact.

Measurement Is No Longer Optional, Expectations Are Rising

Retail media earned trust because it closed the loop between media exposure and sales. That expectation is now extending across the full funnel.

In 2026, brands will expect:

• Incrementality, not just attribution

• Consistent KPIs across onsite, offsite, and in-store media

• Transparency that stands up to comparison with other channels

Retailers that can’t provide this level of accountability will struggle to compete for larger budgets. Measurement isn’t just a reporting function anymore, it’s a sales strategy.

What Retail Leaders Should Prioritize Now

Looking ahead, the retailers best positioned for 2026 are focusing on a few clear priorities today:

  1. Protect what only you can own – Shopper data, purchase signals, merchandising context, and the in-store moment remain uniquely valuable assets.
  2. Build for connection, not isolation – Retail media performs best when it plugs into broader media ecosystems rather than operating as a standalone silo.
  3. Elevate creative standards – High-impact formats and dynamic storytelling aren’t optional if you want brand budgets.
  4. Treat retail media as infrastructure – This isn’t a side project. It’s a long-term capability that touches data, tech, sales, and customer experience.

The Road to 2026

Retail and eCommerce are entering a phase where success is defined less by channels and more by connection – connecting data to creative, media to outcomes, and brand storytelling to measurable performance.

Retail media will remain one of the most powerful growth engines in the industry. But the winners in 2026 will be those who understand that monetizing attention is only the beginning. The future belongs to retailers who can turn commerce into a connected, full-funnel experience that works for shoppers, brands, and the business alike.

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