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IADS White Paper - DEI at a crossroads in retail

Since its founding in 1928, the IADS has served as a collaborative platform for department stores worldwide, conducting research on their activities and supporting members as they navigate ongoing developments.

Each year since 2020, the IADS has published a White Paper on a topic considered strategically important for its members. In 2020, the paper reflected on lessons from the pandemic. Then in 2021, it examined digital transformation and its organisational impact. The 2022 edition analysed sustainability, CSR and ESG. In 2023, retail media and monetisation ecosystems were explored. And in 2024, the White Paper highlighted the crucial role of middle management.

In 2025, the IADS turned its attention to diversity, equity and inclusion (DEI), a subject that has become increasingly complex. The shift began to take shape in 2024, when DEI programmes became a visible point of political contention in the United States. The signing of Executive Order 14151 on January 20, 2025, and the rapid corporate reactions that followed made clear to companies worldwide that DEI is being tested yet again. At the same time, given the challenging economic context, retailers worldwide are asking whether DEI is a must-have rather than simply a distraction from more pressing issues related to “business as usual”. These tensions are the reason why the topic was selected for research this year.

Introduction: what this moment is telling us

During the opening keynote of the 2025 World Retail Congress in London, Ken Murphy, CEO of Tesco, remarked that “by doing the right thing, it also brings growth.” This idea has shaped much of the corporate conversation around DEI in recent years. In reality, the context in which many DEI commitments were originally made has shifted. Political polarisation, economic pressure, demographic shifts and evolving customer expectations have placed DEI under closer scrutiny.

The IADS White Paper  explains why DEI remains, in our point of view, a business imperative. Retail employs one of the most diverse workforces globally and serves an equally diverse customer base. Social justice movements and the uneven effects of the COVID-19 pandemic increased expectations that companies should contribute to fairness and opportunity. Younger consumers also increasingly choose brands that reflect their values. According to Accenture, 41% of shoppers have switched retailers because they felt a company did not prioritise DEI. This indicates that inclusion can influence consumer behaviour in measurable ways.

Research from McKinsey & Company indicates a strong association between diverse leadership teams and improved organisational outcomes. Companies with more gender-diverse executive teams were more likely to outperform financially than those with lower diversity. These findings reinforce the business relevance of inclusive leadership.

Despite widespread commitments, progress in retail remains uneven. Women constitute the majority of frontline retail workers and influence most purchasing decisions, yet they remain underrepresented in senior leadership roles. Representation of racial and ethnic minorities in top roles also lags behind the workforce’s diversity. The White Paper highlights a clear perception gap: many leaders believe they foster inclusive workplaces, while significantly fewer employees share that view.

Economic pressures and political tensions have also slowed or altered progress in some organisations, creating uneven movement across the sector. Some retailers continue to advance, while others have paused or adjusted their approaches. IADS notes that stepping away from DEI carries strategic risks. Companies that remained committed during recent crises tended to demonstrate greater adaptability and organisational strength, whereas those that retreated often experienced diminished trust. As Ken Murphy suggested, DEI can support growth in the same way as other core strategic priorities.

The human advantage: how DEI supports retail performance

Evidence from across the industry shows that DEI strengthens the everyday functioning of retail organisations when it is embedded thoughtfully rather than treated as a separate initiative. Four consistent patterns stand out:

• Diverse leadership and inclusive cultures support stronger financial and operational performance. Companies with broader representation at senior levels tend to make better decisions and avoid narrow thinking, which improves their ability to respond to changing markets and customer needs.
• Inclusion has a clear impact on retention. Retail has long struggled with high turnover, and this pressure eases when employees feel valued and connected to their teams. A sense of belonging, supported by managers who listen and foster meaningful relationships, has been shown to reduce churn and strengthen commitment. Research cited in the White Paper indicates that employees who feel their opinions are valued are more engaged and more likely to remain.
• Inclusive teams are more productive. They share information more openly, surface more perspectives and experience fewer operational errors. Psychological safety and equitable voice sharing translate into smoother store operations, better cross-functional collaboration and improved customer interactions. Even minor improvements in how employees feel heard can lead to measurable gains in performance and safety.
• Inclusion drives innovation. Many retailers say that their strongest ideas come from employees on the shop floor, who observe customer behaviour directly. When people feel able to contribute, organisations gain access to a broader range of insights, leading to improvements in merchandising, service models, and product design. This is important in a global sector serving an increasingly diverse consumer base.

Taken together, these insights form a consistent business case. DEI is not an abstract concept. It shapes how teams communicate, how customers are served and how effectively companies adapt to change. When inclusion is part of everyday practice, it supports performance, trust and competitiveness.

A global imperative, many local realities

DEI does not look the same everywhere. Cultural expectations, regulatory frameworks, workforce demographics and social norms all influence how inclusion is understood and practised across regions. Retailers operating internationally cannot assume that one approach will work everywhere and must account for meaningful variation in priorities and sensitivities.

In some markets, gender equality remains the central focus. In other cases, ethnicity, disability, socioeconomic background, religion, or national integration policies carry greater weight. Attitudes toward DEI language also differ, as do expectations around transparency and communication. Some regions emphasise compliance, quotas or reporting, while others prioritise cohesion, community engagement or workplace harmony.

The White Paper examines these differences across Europe, the Middle East, Asia-Pacific, Africa, Latin America, and North America. It highlights that North America faces a mix of stakeholder pressure and growing backlash. Europe places strong emphasis on gender parity and disability inclusion, shaped by established regulations. The Asia-Pacific region reflects a more diverse landscape, in which demographic complexity and varying levels of comfort with DEI concepts shape corporate practice. The Middle East and Africa illustrate rapid workforce changes and localisation efforts, while Latin America presents contexts where racial, indigenous, gender and LGBTQ+ inclusion intersect with longstanding social inequalities.

However, across these regions, one insight stands out clearly. Retailers succeed when they tailor their approaches to local expectations while upholding universal values of fairness, dignity, and equitable opportunity. Balancing this global consistency with regional nuance has become one of the most critical operational challenges for international retail groups.

Lessons from the field

DEI is illustrated in the White Paper through real examples from IADS members and retailers around the world. These cases show how inclusion efforts succeed in practice, and where they fall short. Retailers that embedded DEI into hiring, leadership expectations, daily management and operational systems saw stronger engagement and trust. Those that treated DEI as a stand-alone programme, or relied on statements rather than action, often struggled to maintain momentum and, in some cases, faced reputational or operational setbacks.

Across these examples, several patterns emerge:

• Clarity matters: employees trust DEI efforts when goals, responsibilities and expectations are explicit.
• Consistency matters: progress is more durable when initiatives continue even as external conditions shift.
• Listening matters: understanding how underrepresented groups experience the workplace helps reveal blind spots.
• Action matters: practical steps such as fair hiring practices, equitable promotion pathways and inclusive meeting habits carry more weight than broad declarations.

When DEI is implemented in a practical and structured way, organisations experience improved communication, stronger team collaboration, enhanced customer interactions, and a more resilient culture. These field insights reinforce a central message: DEI drives performance when it is built into the organisation’s routines, not when it is treated as an isolated initiative.

Taken together, the retailers examined in the White Paper illustrate how these principles play out across different organisational models and regional contexts. Some companies, such as John Lewis Partnership and Wegmans, demonstrate how deeply rooted people-centred cultures can create strong foundations for inclusion. They also revealed that values alone are insufficient without explicit leadership accountability and measurable progress at senior levels. Other retailers, including Falabella, The Mall Group, and Marks & Spencer, demonstrate that DEI is experienced most powerfully through everyday management practices. Their emphasis on well-being, flexibility, intergenerational inclusion and psychological safety is closely linked to lower turnover, higher engagement and more consistent service quality in labour-intensive retail environments.

Several cases highlight the importance of addressing equity through systems and structures. Bloomingdale’s experience with commission models, along with Galeries Lafayette’s and El Corte Inglés’ focus on internal mobility, disability inclusion, and data-driven targets, demonstrates that inclusion challenges often lie within pay, promotion, and progression mechanisms rather than intentions or culture alone. In another set of examples, Chalhoub Group, Target and Best Buy, illustrate how inclusion can be leveraged to support innovation, brand relevance and growth. In these examples, diverse perspectives inform merchandising, marketing, supplier relationships, and community engagement, thereby strengthening customer connections and, in some cases, supporting broader business transformation.

Finally, the White Paper documents instances in which DEI was neglected, inconsistently sustained, or poorly managed. Cases such as Abercrombie & Fitch, H&M and periods of perceived pullback at Walmart underline the reputational, operational and trust-related risks of exclusion, cultural blind spots or inconsistency. They also show that progress is not fixed: retailers can move forward or backwards depending on leadership focus and sustained commitment. Seen collectively, these examples reinforce that DEI in retail is neither uniform nor static. Its impact depends on how clearly it is defined, how consistently it is applied, and how closely it is integrated into the systems and decisions that shape everyday work. In a context of continued uncertainty, these patterns help explain why DEI increasingly functions less as a statement of values and more as a contributor to organisational resilience.

Conclusion: DEI as part of retail resilience

DEI continues to act as a stabilising force for retailers navigating political tension, labour shortages and rapid technological change. Inclusive organisations make more informed decisions, adapt more readily and maintain higher levels of trust across their teams. In this sense, DEI is not simply about meeting expectations. It is part of what enables an organisation to remain steady when conditions shift.

The advantages become visible in everyday operations. Inclusive workplaces see stronger collaboration, fewer barriers between frontline teams and headquarters and smoother execution during periods of operational pressure. Employees who feel respected and able to contribute are more likely to remain, thereby reducing turnover in a sector where continuity is essential to service quality. These practical elements of inclusion, such as how meetings are conducted and how opportunities are shared, become habits that strengthen overall performance.

DEI also supports innovation and customer relevance. Retailers consistently report that diverse perspectives help anticipate changes in consumer behaviour and generate ideas that improve products, services, and the store experience. When employees feel comfortable sharing insights, problems are addressed sooner, and teams adjust more quickly to new trends. These capabilities are becoming increasingly important as AI, sustainability demands and demographic shifts change how teams work and how customers engage with retailers.

The IADS believes that retailers who approach DEI with clarity, consistency and long-term focus will be better positioned to face future challenges. Inclusion strengthens resilience by grounding organisations in fairness, opportunity and belonging, qualities that support people and performance at the same time. At this crossroads, retailers who integrate these principles into their everyday decisions will be best prepared to remain connected to both their employees and their customers.

Credits: IADS (Maya Sankoh)

What: Anthropomorphizing AI in public discourse misleads consumers, undermines trust, and obscures accountability in technology deployment.

Why it is important: Misleading language about AI can erode trust and hinder responsible innovation, as highlighted by recent industry analyses.

The article critiques the widespread use of anthropomorphic language in discussions about artificial intelligence, arguing that such descriptions mislead the public and obscure the true nature and limitations of these technologies. By portraying AI as possessing human-like intelligence, emotions, or agency, both companies and the media risk fostering misplaced trust and unrealistic expectations among consumers. This framing not only oversells the capabilities of AI systems but also shifts accountability away from the people and organizations responsible for their development and deployment. The authors emphasize that metaphors and humanizing terms can distort understanding, particularly for vulnerable populations, and may lead to negative outcomes such as over-reliance, dehumanization, and even psychological harm. They advocate for more precise, functional language that accurately reflects what AI systems do, rather than what they are purported to be. This shift in communication is essential for improving AI literacy, enabling informed decision-making, and ensuring that technology serves human interests responsibly.

IADS Notes: Recent research and industry developments strongly reinforce the argument that anthropomorphizing AI in retail communications can undermine consumer trust and distort expectations. As highlighted in Harvard Business Review (January 2025), studies show that consumers prefer transparency and the clear involvement of human expertise over attempts to make AI appear more human-like, with this approach significantly improving acceptance and confidence in AI-powered retail experiences. The surge in GenAI adoption throughout 2025, as reported by BCG (January 2026), has made AI a central touchpoint for shoppers, but consumers continue to prioritize objectivity and transparency, compelling retailers to rethink their digital strategies to maintain relevance and trust. Responsible AI practices, particularly those emphasizing privacy and auditability, have been shown to boost adoption rates and satisfaction, as seen in Harvard Business Review (March 2025), while high satisfaction and operational gains are only realized when consumers perceive AI interactions as trustworthy and well-supervised, according to CB News (May 2025). The rapid integration of AI-driven shopping assistants, especially during peak periods like the 2025 holiday season, further underscores the need for brands to balance innovation with clear, authentic communication to maintain consumer confidence, as noted by The Economist (December 2025).

We need to talk about how we talk about 'AI'

What: The Visa report highlights how economic pressures and shifting consumer sentiment are driving changes in retail spending, with spending growth increasingly reliant on wealthier shoppers.

Why it is important: The report’s insights align with recent analyses showing that demographic divides and economic pressures are forcing retailers to adapt strategies to maintain resilience.

Visa’s latest report details a retail landscape shaped by declining consumer confidence, job loss concerns, and persistent economic uncertainty. Despite these headwinds, overall retail spending remains robust, largely due to the continued strength of affluent consumers. The report underscores that while many shoppers are curbing discretionary purchases, wealthier segments are sustaining growth, particularly in luxury and value-driven categories. Demographic divides are increasingly evident, with Gen Z and millennials showing more caution in their spending, while older consumers and the mass affluent maintain or even increase their expenditures. Retailers are responding by refining inventory strategies, focusing on operational efficiency, and prioritizing value and well-being in their customer offerings. The interplay between perceived well-being and spending is highlighted as a critical factor, suggesting that retailers must address broader lifestyle concerns to retain consumer loyalty. As economic pressures persist, the sector’s reliance on affluent shoppers introduces new risks, making adaptability and targeted engagement essential for continued resilience.

IADS Notes: The latest Visa report’s findings are strongly echoed by recent industry analyses, which consistently highlight a disconnect between consumer sentiment and actual retail spending. Throughout 2025, sources such as The Economist and Inside Retail documented how US retail sales remained resilient, with holiday sales surpassing $1 trillion despite consumer confidence hitting a three-year low and inflation expectations rising to 6%. This paradox is further explained by the ongoing strength of affluent consumers, who have continued to drive both luxury and value segments, as noted by BoF and The Economist in November and December 2025. At the same time, demographic divides have become more pronounced, with Gen Z cutting back sharply while older generations maintain or increase their spending, as reported by PwC and the Financial Times. Economic pressures, including weak job growth, rising inflation, and policy uncertainty, have forced retailers to adopt leaner inventory strategies and focus on operational resilience, as detailed by Forbes and Alix Partners. Finally, the growing importance of wellbeing and perceived control in shaping consumer outlooks has prompted retailers to prioritize supportive, value-driven experiences, as highlighted by Euromonitor and BCG in early 2026.

Visa report: In the US, employment and affordability pressures could peak

What: Peaks in new product purchases during sales periods directly fuel the expansion of the second-hand and refurbished goods sector.

Why it is important: Understanding this relationship helps retailers and brands optimize both new and second-hand sales channels, aligning with trends identified in the past year.

The second-hand market’s growth is intricately linked to cycles of overconsumption and sales events, such as Black Friday and seasonal promotions. These periods of heightened purchasing, especially in electronics, result in a significant influx of functional devices into the second-hand ecosystem, as consumers replace old products with new ones. This dynamic is particularly relevant in a context of strained purchasing power and inflation, where sales events become crucial for budget-conscious households seeking access to technology. Rather than viewing overconsumption and sustainability as opposing forces, the article argues for a balanced approach, where responsible management of sales and take-back schemes can transform consumption peaks into opportunities for circularity. Retailers, brands, and public authorities are encouraged to collaborate, integrating buyback and refurbishment programs to ensure a steady supply of quality second-hand goods. Ultimately, the challenge is not to reduce production indiscriminately, but to extend the lifecycle of products, making sales events a lever for a more sustainable retail economy. 

IADS Notes: The article’s analysis aligns with recent industry findings, such as Forbes (Dec 2025), which highlights resale as a key growth engine for retail, and WWD (Sep 2025), which notes that economic pressures are accelerating the shift to second-hand platforms. The Retail Bulletin (Mar 2025) emphasizes the necessity of circular economy strategies, while BCG (Jun 2025) and Journal du Net (Oct 2025) underscore the importance of balancing value, sustainability, and authenticity in today’s retail landscape.

Sales frenzy and overconsumption: fuel of the second-hand

What: Managers today must navigate the complexities of leading multigenerational teams with differing expectations, communication styles, and career aspirations.

Why it is important: Addressing generational divides and supporting managers is critical for organizations to adapt to workforce changes and prevent costly disengagement.

The modern workforce is defined by the coexistence of five generations, each bringing distinct perspectives, values, and expectations to the workplace. This diversity creates both opportunities and challenges for managers, who must bridge perception gaps and align team members around shared goals. Younger employees, particularly Gen Z, are less interested in traditional management roles, often citing high stress and a desire for better work-life balance, while older generations may be more comfortable with established hierarchies. These differences can lead to misunderstandings, disengagement, and even burnout, especially among middle managers who are expected to translate organizational priorities across generational lines. Organizations are increasingly recognizing the need for clear communication, structured support, and value-driven practices to foster engagement and productivity. HR leaders play a pivotal role in reducing friction, ensuring that expectations are transparent, and providing managers with the tools they need to succeed. Ultimately, adapting to these generational dynamics is essential for maintaining a motivated, high-performing workforce in an evolving business landscape.

IADS Notes: Recent findings from December 2025 show Gen Z employees often experience criticism and lack of recognition, increasing stress and turnover risk (HR Dive, December 2025), while half of Gen Z professionals are turning away from middle management roles due to high stress and insufficient rewards (Financial Times, February 2025). Burnout among middle managers remains a significant concern, with nearly three-quarters feeling overwhelmed and in need of targeted support (Sifted, January 2025). Organizations are responding by prioritizing value-driven employment practices and aligning organizational values with employee expectations (The Retail Bulletin, May 2025). The ongoing mental health crisis, especially among younger employees, underscores the urgency of flexible work arrangements and robust support systems (Seramount, July 2025).

The manager challenge: five generations, one workforce

What: BCG predicts that AI and automation are transforming retail store operations, reshaping workforce roles and driving productivity gains.

Why it is important: BCG’s analysis shows these changes highlight the need for robust governance and upskilling to ensure sustainable growth, building on insights from recent industry analyses.

The retail sector is experiencing a profound transformation as AI and automation become central to store operations and workforce management. BCG’s 2026 predictions emphasize that automation is not simply about reducing labor costs but about fundamentally redesigning frontline roles, elevating the responsibilities of store associates, and introducing new advisory positions. This shift is driven by evolving consumer expectations and wage pressures, prompting retailers to focus on higher-skilled, customer-facing activities while automating repetitive tasks. The integration of AI-powered tools is enabling significant productivity gains, with leading retailers reporting annual improvements and a move toward value creation rather than mere cost-cutting. However, this evolution also requires robust governance frameworks and a commitment to upskilling employees to adapt to new technologies and workflows. The industry’s recent experience, as documented by BCG and supported by other sources, demonstrates that sustainable growth in retail hinges on balancing technological innovation with workforce development, ensuring that operational resilience and competitive advantage are maintained in a rapidly changing environment.
IADS Notes: The 2026 BCG predictions align with recent industry developments, such as the job cuts at Amazon and Target reported by Forbes in October 2025, which illustrate the acceleration of automation and the changing skill requirements in retail. Le Monde’s October 2025 coverage further highlights the sector’s focus on upskilling and productivity, while Forbes and BCG analyses from March 2025 and January 2025 confirm that AI integration is driving both efficiency and the need for robust governance. These sources collectively reinforce the importance of balancing innovation with workforce development to achieve sustainable growth.

BCG’s 2026 Retail Predicitions

What: Federal scrutiny of DEI initiatives intensifies under the EEOC, leading retailers like Walmart, Amazon, and Target to alter or scale back diversity and inclusion efforts.
Why it is important: The shift in federal enforcement highlights the operational and financial consequences for retailers, reinforcing trends observed in the past year regarding DEI program adjustments.

The EEOC’s new direction under Chair Andrea Lucas signals a fundamental change in how corporate DEI programs are evaluated and enforced, particularly for major retailers. With the agency now prioritizing a conservative interpretation of civil rights, companies that incorporate race, sex, or other protected characteristics into employment decisions face increased risk of enforcement actions or litigation. This has led to a wave of reassessment among leading retailers, including Walmart, Amazon, and Target, who have either rebranded, scaled back, or dissolved their DEI initiatives to avoid legal exposure. The consequences of these changes are significant: Target, for example, experienced a $10 billion valuation loss and faced a shareholder lawsuit after rolling back its DEI efforts. Despite the political and legal pressures, many retailers remain committed to inclusion, but are now more cautious, focusing on compliance and strategic messaging. The evolving landscape underscores the delicate balance between regulatory requirements, workforce morale, and consumer expectations, making the approach to DEI as important as the initiatives themselves.

IADS Notes: The EEOC’s intensified scrutiny in 2026 mirrors the profound shifts seen throughout the previous year. In February and March 2025, Walmart and Amazon rebranded their inclusion efforts to reduce legal risks, while Target’s rollback led to major financial and reputational fallout. A Littler survey in May 2025 confirmed that most retailers plan to maintain DEI programs but with greater caution. The emergence of the FAIR framework and the divide between mass-market and luxury retailers, as discussed in January and July 2025, illustrate an industry navigating compliance, morale, and shifting consumer expectations.

Corporate America faces DEI reckoning in 2026

What: Global trade is evolving into a multi-nodal patchwork, with new regional blocs and rising protectionism reshaping supply chains, costs, and growth strategies for international businesses.

Why it is important: Rising fragmentation and new trade dynamics demand that companies rethink their global strategies, as confirmed by recent analyses on cost pressures and geopolitical risk management.

The report outlines a fundamental transformation in the global trade landscape, where the era of unified, rules-based commerce is giving way to a fragmented, multi-nodal system. Four main trade nodes—the US, China, the Plurilateralists, and BRICS+ (excluding China)—are emerging, each with distinct priorities and approaches to trade, regulation, and economic policy. This shift is driven by escalating protectionism, the proliferation of tariffs, and a focus on national security and self-sufficiency, particularly in critical sectors like technology and raw materials. Despite these headwinds, global trade is projected to remain resilient, growing slightly faster than global GDP, but with significant changes in trade routes and market access. Companies are urged to embed geopolitical scenario planning into their strategies, strengthen and diversify supply chains, and leverage technology to drive productivity and manage costs. The evolving landscape requires businesses to be agile, balancing resilience with growth, and to develop sophisticated approaches to risk management and operational efficiency in order to thrive amid ongoing uncertainty.

IADS Notes: The BCG analysis of a patchwork world order in global trade aligns closely with recent industry findings, which show that despite rising geopolitical fragmentation, global trade is expected to grow at 2.5% annually through 2034, driven by the emergence of new regional trade nodes and the increasing significance of the Global South (January 2026). Retailers are responding to these shifts by moving beyond traditional just-in-time models, investing in AI and diversified supply chains to balance resilience, cost, and sustainability (May 2025). The convergence of tariffs, inflation, and policy uncertainty has forced US retailers to prioritize scenario planning and operational agility, with many adopting AI-powered analytics and robust contingency strategies to navigate rising costs and shrinking discretionary spending (September 2025). This transformation is further underscored by the integration of advanced technologies, as leading retailers achieve notable gains in productivity and efficiency through AI-driven value creation (March 2025). To manage the complexity of evolving trade policies, companies are establishing cross-functional geopolitical nerve centers, leveraging data analytics for real-time supply chain optimization and strategic planning, ensuring resilience and competitive advantage in an unpredictable environment (April 2025).

Trade in transition: how to prepare for a patchwork world order - full report

Resilient global trade could grow 2.5% annually through 2034 despite rising geopolitical fragmentation - press release 

What: Sifted’s first 2026 podcast explores how retail leaders and experts are navigating rapid technological and consumer shifts.

Why it is important: By spotlighting both challenges and opportunities, this episode reinforces the importance of editorial leadership in guiding retail through change.

The inaugural Sifted podcast of 2026 brings together editorial voices and industry experts to discuss the profound changes shaping the retail sector. The conversation centers on how retailers are responding to the acceleration of technological innovation, particularly the integration of AI, agentic commerce, and advanced payment systems. These developments are not only transforming operational models but also redefining consumer expectations, with a growing demand for personalization and seamless omnichannel experiences. The podcast highlights the necessity for retail leaders to adopt agile strategies, invest in upskilling, and remain resilient in the face of ongoing uncertainty. Editorial perspectives play a crucial role in interpreting these shifts, offering guidance and thought leadership as brands navigate a landscape marked by both disruption and opportunity. The dialogue underscores that success in 2026 will depend on a retailer’s ability to balance digital transformation with authentic customer engagement, leveraging expert insights to anticipate and respond to evolving market dynamics.

IADS Notes: As the Sifted podcast launches into 2026, its exploration of retail’s transformation aligns closely with recent industry reports and expert commentary. The January 2026 MBS report highlights the acceleration of AI adoption and hyper-personalisation, while the Journal du Net and Forrester, also in January 2026, detail the rise of agentic commerce and the convergence of real-time payments. Insights from the October 2025 GDI International Retail Summit and the September 2025 Bain Innovation Report reinforce the importance of agile leadership and strategic risk-taking, echoing the podcast’s emphasis on expert perspectives. Meanwhile, the December 2025 Alix Partners outlook and the September 2025 PwC analysis both document a shift in consumer behavior toward value-driven, omnichannel experiences. Editorial voices, such as those in the October 2025 Fashion Network and January 2025 The Robin Report, further underscore the need for innovative, experience-led retail strategies. Collectively, these sources illustrate how editorial leadership and expert analysis are shaping the sector’s response to technological disruption and evolving consumer demands.

2026: The year the AI bubble bursts?

What: Nearly half of the women's consumer health market remains underserved, representing a $36 billion opportunity for brands that address women's specific needs.

Why it is important: Addressing this gap aligns with recent findings that brands prioritizing inclusivity and innovation in women's health can unlock substantial growth.

Women are central to the consumer health market, yet their specific needs are often unmet, leading to widespread dissatisfaction with current products. A BCG survey of nearly 4,000 US consumers found a $36 billion gap in unmet demand, especially in areas like weight management, skin, hair, nail health, and mental health. This gap stems from insufficient research, delayed inclusion of women in clinical trials, and marketing strategies that do not reflect how women seek health information or what they value in products. Women’s health concerns and preferences differ from men’s, and they rely more on trusted medical sources. Brands that focus on understanding these differences, developing evidence-based solutions, and communicating transparently through trusted channels are best positioned to capture this significant market and drive retail sector growth.

IADS Notes: The December 2025 BCG analysis and supporting 2025 reports confirm that addressing women’s unmet health needs, through inclusivity and targeted strategies, is essential for brands aiming for growth and competitive advantage in the consumer health market

Why women’s consumer health needs go unmet—and what to do about it

What: Nike’s removal of its annual wellness week has reignited debate about employee well-being, trust, and change management in the retail sector.

Why it is important: This development reflects ongoing challenges where employee well-being and trust are critical for retention and operational success, as confirmed by recent industry reports.

Nike’s recent decision to discontinue its annual wellness week has sparked renewed discussion about the balance between organizational productivity and employee well-being. This move comes at a time when burnout, mental health concerns, and change fatigue remain pressing issues for employees and HR leaders alike. The reaction to Nike’s policy shift is emblematic of a broader trend across industries, where the manner in which changes are communicated and implemented often has a greater impact on employee trust and morale than the changes themselves. Trust is easily eroded when employees feel excluded from decisions affecting their daily lives, and early warning signs of disengagement are frequently overlooked. As organizations accelerate productivity initiatives and technology adoption, the environment becomes increasingly fragile, with employees carrying heavier workloads and heightened uncertainty. The article emphasizes that effective listening and early employee involvement are essential for successful change management, helping to prevent backlash and foster alignment. Ultimately, the way companies navigate these moments will shape their ability to retain talent and maintain a resilient, engaged workforce.

IADS Notes: Nike’s decision and the ensuing debate mirror findings from July 2025 (Seramount, Times of India, Sifted), which reveal that workplace stress and burnout are driving high turnover and significant costs. The importance of transparent, inclusive change management is reinforced by examples from Macy’s and Saks (BCG, July 2025), while trust and psychological safety remain fragile, as highlighted by ERE Media and Harvard Business Review (April and October 2025). As technology adoption and labor market shifts continue, systematic upskilling and robust listening tools are increasingly vital for aligning organizational values with employee expectations (BCG, Journal du Net, The Retail Bulletin, September–July 2025).

Nike sparked a conversation. Here’s what HR should hear in it.

What: Modernising ERP systems with AI integration is becoming essential for retailers to achieve operational efficiency and scale value across their enterprises.

Why it is important: The integration of AI and ERP is critical for unlocking productivity and profitability, as seen in recent industry benchmarks.

Retailers are increasingly recognising the necessity of modernising their ERP systems to fully leverage the potential of AI, as this integration is pivotal for achieving operational efficiency and unlocking value at scale. The convergence of AI agents and ERP platforms enables faster implementation, reduces manual workloads, and accelerates digital transformation, but the benefits are only realized when these technologies are embedded into core business processes. Despite significant investment, many retailers still struggle to scale AI-driven solutions due to outdated systems and insufficient change management. Only a small proportion of companies have managed to overcome these hurdles, with leadership and workforce engagement proving to be decisive factors in successful adoption. As intelligent operations and data-driven decision-making become industry standards, those retailers who prioritise both technological innovation and organisational transformation are setting new benchmarks for productivity and profitability. The evolving landscape underscores the importance of foundational modernisation and strategic leadership in driving sustainable growth and maintaining competitiveness in the retail sector.

IADS Notes: As noted in the April 2025 BCG report, generative AI is enabling retailers to implement ERP systems up to five times faster, reducing manual effort and accelerating digital transformation, especially as cloud migration becomes urgent. The October 2025 Zebra report confirms that intelligent operations powered by AI and workflow optimisation have led to measurable profitability and revenue growth, though only a minority of retailers have managed to scale these solutions due to persistent inefficiencies. The September 2025 BCG article highlights how GenAI is transforming supplier negotiations and operational processes, but emphasises that only 10% of companies have scaled these innovations. The March 2025 Forbes analysis underscores that leading retailers are achieving notable productivity growth by integrating AI, while the April 2025 BCG article stresses that CEO leadership and employee engagement are critical for successful AI adoption, with cultural transformation and upskilling being essential for overcoming adoption barriers.

Bridging the great AI agent and ERP divide to unlock value at scale

What: GenAI adoption for shopping surged in 2025, prompting retailers to overhaul strategies for AI-driven consumer engagement.

Why it is important: The rapid rise of GenAI in retail is transforming how brands compete for visibility and consumer trust, as seen in recent market analyses.

Generative AI is fundamentally reshaping the retail landscape, with a dramatic 35% increase in shopping-related GenAI use from February to November 2025. Consumers now rely on GenAI not only for major purchases like electronics but also for everyday items such as groceries, valuing its objectivity, transparency, and personalized guidance. This widespread adoption has made GenAI a decisive and trusted touchpoint, often surpassing traditional marketing channels in influence. Retailers are responding by rethinking their digital strategies, focusing on answer engine optimization and generative engine optimization to ensure their brands remain visible and relevant in AI-driven environments. As AI platforms become the new retail gatekeepers, brands must deliver consistent, authoritative, and machine-readable content across all touchpoints. The ability of GenAI to instill confidence and guide consumers through complex decisions is shifting competitive dynamics, making it essential for retailers to adapt quickly or risk losing direct relationships with customers. The future of retail will be defined by those who can successfully integrate AI into every stage of the consumer journey.

IADS Notes: Throughout 2025, retailers saw an 830% surge in AI-driven traffic, with Forbes (November 2025) reporting significantly higher conversion rates among these shoppers. Adventures in Consumer Tech (November 2025) emphasized the need for machine-readable, authoritative content, while Retail Dive (September 2025) highlighted Target’s focus on generative engine optimization and agent-to-agent commerce. Inside Retail (November 2025) detailed new tactics for AI agent visibility, and the Financial Times (November 2025) warned that brands failing to engage with AI platforms risk losing customer relationships and market relevance.

Consumers trust AI to better. brands need to move quickly

What: Retailers are transforming logistics into a competitive advantage by leveraging technology, seamless returns, and secondhand market integration.

Why it is important: Integrating technology and circular models in logistics aligns with the growing demand for sustainability and operational excellence identified in the past year.

Retailers are fundamentally reimagining logistics, elevating it from a back-end function to a strategic pillar that drives competitiveness and customer satisfaction. The sector’s transformation is propelled by the integration of artificial intelligence, predictive analytics, and agile supply chain models, enabling brands to anticipate consumer needs and optimize inventory across all channels. Seamless returns management has become essential, particularly in fashion and e-commerce, where rapid processing directly impacts resale value and customer loyalty. The explosive growth of the secondhand market is pushing retailers to adopt circular logistics models, focusing on repair, refurbishment, and reintegration to capture new value and meet sustainability expectations. Click & collect is rapidly gaining ground, projected to account for nearly a fifth of e-commerce sales by 2027, underscoring the necessity for omnichannel solutions that offer both speed and flexibility. Ultimately, the future of retail hinges on the ability to transform logistics into a strategic lever, delivering a seamless customer experience while advancing environmental responsibility.

IADS Notes: The reinvention of retail logistics is validated by Bain & Company (May 2025), which highlights the shift toward AI-driven, resilient supply chains, and by Zebra (October 2025), which documents measurable gains from intelligent operations. Retail Week (October 2025, January 2026) reports on the strategic importance of returns management, while Forbes (December 2025) and Inside Retail (January 2026) emphasize the secondhand market’s role in driving circularity. Ecommerce Europe (October 2025) and Journal du Net (November 2025) further confirm the rise of click & collect and omnichannel strategies as critical to customer loyalty and operational excellence.

Reinventing retail through logistics

What: Sweden’s ReTuna mall proves that government-backed, curated second-hand retail can transform waste into value and reshape consumer perceptions.

Why it is important: The model’s success highlights the critical role of infrastructure and policy support in mainstreaming circular retail.

ReTuna’s pioneering approach as the world’s first second-hand mall has redefined what sustainable retail can achieve, blending municipal vision with commercial viability. By situating the mall alongside a recycling center and integrating a structured process for upcycling donated goods, ReTuna turns potential landfill into desirable products, creating a continuous material loop. Its curated, aspirational retail environment challenges outdated notions of second-hand shopping, making sustainability accessible and attractive to a broad audience. The mall’s economic impact is significant, generating millions in sales and creating local jobs, while also serving as a catalyst for broader shifts in consumer attitudes and industry practices. ReTuna’s success is not solely the result of consumer enthusiasm; it relies on robust government support and public funding, demonstrating that circular retail models require institutional commitment to thrive. As cities worldwide look for scalable solutions to waste and sustainability challenges, ReTuna offers a compelling blueprint for integrating circularity into urban retail infrastructure.

IADS Notes: As reported by The Retail Bulletin in March 2025, circular economy strategies have become essential for the retail sector, driven by regulatory changes and increasing consumer demand for sustainable options. Inside Retail highlighted in February 2025 the rapid expansion of Australia’s second-hand retail market, reflecting a broader shift toward sustainable consumption. The Robin Report’s coverage in January 2025 of Peek & Cloppenburg’s Berlin store demonstrated the commercial viability of large-scale, sustainable retail concepts. Journal du Net in October 2025 discussed how brands are leveraging technology and community engagement to transform second-hand retail into a trusted and profitable channel. Finally, Inside Retail in April 2025 showcased how the reinvention of shopping malls through sustainability initiatives and experiential retail is reshaping the industry toward integrated, community-driven environments.

The world’s first second‑hand mall is still leading the circular revolution

What: The collapse of age-based retail segmentation is reshaping demand, with cross-generational consumption and kidult spending forcing brands to rethink their strategies.

Why it is important: The rise of cross-generational shopping and kidult spending demonstrates how rigid segmentation can limit growth and relevance.

Traditional age-based segmentation in retail is rapidly losing its effectiveness as demographic shifts and evolving consumer behaviours blur the boundaries between categories. Adults are increasingly driving growth in sectors once reserved for children, such as toys and collectibles, while tweens and teens are accelerating their entry into beauty and fashion markets, often outspending previous generations. The luxury children’s market is booming, fueled by affluent families, even as mass-market children’s retailers struggle or restructure. Social media and digital platforms have further accelerated this trend, exposing younger consumers to adult routines and aesthetics, while adults embrace nostalgia and accessible indulgences. Retailers that continue to rely on rigid age-based targeting risk missing out on new growth opportunities and becoming irrelevant to both emerging and established consumer segments. The industry is now challenged to develop strategies that prioritise intent, lifestyle, and engagement over traditional demographic boundaries, ensuring relevance in a structurally split and increasingly complex marketplace.

IADS Notes: Inside Retail in January 2026 reported the decline of age-based segmentation and the rise of kidult spending, while December 2025 coverage highlighted the shift toward authentic, experience-focused engagement. BCG and WWD in October 2025 noted Gen Z and Gen Alpha’s influence on fashion, and Le Monde in December 2025 documented adult-driven growth in the toy market. BCG in May 2025 confirmed the transformation of the beauty sector by US teens, underscoring the need for retailers to adapt to cross-generational consumption.

Why age-based retail segmentation no longer works

What: Four major consumer behavioural shifts for 2026 are set to reshape retail strategies and customer engagement.

Why it is important: The focus on wellbeing and mental health aligns with growing consumer expectations for supportive and trustworthy retail experiences.

The Euromonitor 2026 Consumer Trends report outlines four significant shifts in consumer behavior that are poised to redefine the retail landscape. As consumers increasingly seek comfort, control, and reassurance, retailers are urged to prioritise wellbeing and simplicity in their offerings. The report highlights a marked rise in consumer stress, with a growing demand for products and services that support mental health and stress reduction. This evolving landscape compels brands to respond to ongoing societal and economic volatility by delivering value-driven and balanced experiences, rather than relying solely on traditional discounting strategies. Additionally, the report underscores the importance of recognising regional differences in stress levels and consumer needs, suggesting that retailers must tailor their approaches to resonate with diverse markets. By aligning strategies with these emerging expectations, retailers can foster deeper trust and loyalty, ensuring relevance and resilience in a rapidly changing environment

IADS Notes: The Euromonitor report’s findings are reinforced by recent industry analyses. In December 2025, Alix Partners highlighted the need for agility and balancing digital with physical channels, while in January 2026, MBS emphasised resilience and regional adaptation in retail. November 2025 research from BCG in Canada revealed a consumer shift toward value and trust over discounts. Sifted’s July 2025 data underscored the business imperative of supporting mental health in retail workplaces, and McKinsey’s January 2025 insights from Asia-Pacific stressed the importance of tailoring strategies to regional consumer sentiment and omnichannel trends.

Top global consumer trends 2026

What: Science-based influence strategies are reshaping how organizations approach DEI, leadership, and talent management.

Why it is important: Emphasizing data-driven influence strategies helps organizations achieve tangible improvements in DEI and employee engagement, building on insights from the past year.

Organizations are increasingly turning to science-based influence strategies to drive meaningful progress in diversity, equity, and inclusion (DEI), leadership, and talent management. By integrating structured frameworks and leveraging data-driven insights, companies are able to measure the impact of their DEI initiatives and adapt their approaches for greater effectiveness. This shift is evident in the adoption of practical toolkits and case studies, which provide actionable guidance for addressing workforce engagement and operational challenges. Leadership collaboration, particularly through roles such as Chief Diversity Officers, is fostering innovation and resilience, while employee voice mechanisms are strengthening organizational culture and trust. As organizations prioritize measurable outcomes, they are not only enhancing employee engagement but also building more inclusive and adaptive workplaces. These developments underscore a broader trend toward evidence-based management, where data and influence science play a central role in shaping sustainable business success.

IADS Notes: As highlighted by Retail Dive, ESG Dive, and HR Dive in early and mid-2025, companies like Walmart and Amazon have adjusted their DEI strategies to balance inclusion with performance, while abrupt policy shifts have led to setbacks for others. The Retail Bulletin and ERE Media emphasize the importance of employee voice and transparent leadership in building trust and retention. Retail Week, Drapers, and LEADNetwork showcase the role of inclusive leadership in driving innovation, while Seramount, MAD, and BCG provide practical frameworks and case studies for talent management. Finally, Seramount, BCG, and Retail Detail illustrate how science-based influence and data-driven marketing are delivering measurable business outcomes across organizations.

The science of influence framework

What: Organizations face a critical leadership pipeline crisis as Baby Boomers retire and younger generations show declining interest in traditional management roles.

Why it is important: Addressing this leadership gap is essential for maintaining business continuity and adapting to evolving workforce expectations, as seen in recent industry analyses. 

Organizations are confronting an unprecedented leadership transition as millions of Baby Boomers approach retirement, creating a significant drain on institutional knowledge and management capacity. At the same time, younger generations are increasingly reluctant to pursue traditional leadership roles, citing preferences for autonomy, well-being, and purpose over hierarchical advancement. This dual challenge is destabilizing established succession models and making leadership continuity more difficult to sustain. Human Resources leaders are now tasked with not only identifying where vulnerabilities exist in the talent pipeline but also redesigning roles and career paths to attract and develop future leaders. The unpredictability of retirement timelines further complicates workforce planning, while the need for mentorship, modernized development programs, and flexible leadership structures becomes more urgent. As organizations adapt to these shifts, they must prioritize inclusive, value-driven leadership models that resonate with evolving employee expectations, ensuring that leadership roles remain motivating, sustainable, and aligned with long-term business goals.

IADS Notes: The urgency to rethink leadership pipelines and succession strategies is echoed in recent analyses, with January 2026 highlighting the impact of technological change and evolving talent strategies, while December 2025 sources point to the redefinition of leadership roles and the importance of inclusive, skills-focused development. May and April 2025 further emphasize the need for value-driven practices and flexible, empathy-driven management to meet the expectations of a changing workforce.

Who will lead next? Rethinking the leadership pipeline

What: Hybrid work models, transparent metrics, and inclusive leadership are transforming productivity and talent retention across industries.

Why it is important: This shift reflects a broader movement toward outcome-based management and employee-centric cultures, as confirmed by recent industry analyses.

Organizations are at a pivotal juncture as they redefine productivity and talent management for the hybrid era. With nearly half of CEOs prioritizing productivity, many have implemented return-to-office policies, yet research reveals that flexibility now outweighs compensation as the top factor in job selection and retention. Employees are willing to accept pay cuts for greater flexibility, and well-designed hybrid models have been shown to enhance engagement, retention, and well-being—key drivers of organizational performance. Studies indicate that hybrid work improves job satisfaction and retention rates without sacrificing productivity, challenging the traditional reliance on visibility and outdated metrics. The new productivity playbook emphasizes outcome-based frameworks, transparent communication, and continuous feedback, while also highlighting the critical roles of intentional management, AI integration, and employee well-being. Inclusive leadership and structured listening further ensure that evolving work models remain adaptive and trusted. Ultimately, organizations that prioritize transparency, trust, and shared purpose are best positioned to sustain high performance and attract top talent in a rapidly changing environment.

IADS Notes: The priorities outlined in the new productivity playbook are echoed by recent industry sources. Forbes (March 2025) and ERE Media (June 2025) highlight how reimagined workplace culture and AI integration have driven measurable productivity gains. Flexible, hybrid models have reduced turnover risk and underscored the importance of well-being and inclusion, as seen in the Times of India (July 2025). The pivotal role of psychological safety and trust for managers is confirmed by Harvard Business Review (October 2025) and The Retail Bulletin (May 2025). The most successful AI and automation strategies are those that prioritize engagement and learning, according to Journal du Net (July 2025) and Inside Retail (September 2025). Finally, the financial and operational benefits of inclusive leadership and value-driven practices are widely recognized, as demonstrated by LEADNetwork (February 2025), The Retail Bulletin (May 2025), and Seramount (June 2025).

The new productivity playbook: Five priorities for a hybrid era

What: Companies are recalibrating DEI programs, emphasizing transparency and broader inclusion to maintain trust and resilience amid a changing environment.

Why it is important: Emphasizing transparency and broader inclusion helps organizations retain talent and maintain resilience, consistent with developments reported in the past year.

In 2025, organizations faced unprecedented challenges to their inclusion strategies, driven by executive orders, legal scrutiny, and shifting public expectations. Many companies responded by rebranding or renaming their DEI functions, recognizing that outcomes mattered more than labels. Silence around inclusion efforts proved detrimental, eroding employee trust and leaving room for external narratives to shape perceptions. Transparent communication, even when external messaging was cautious, emerged as essential for maintaining loyalty and clarity. The year also highlighted the importance of making inclusion initiatives accessible to all employees, broadening the scope to address shared experiences and fostering a sense of belonging across diverse groups. As organizations look to 2026, the focus is on connecting inclusion efforts directly to business priorities and measuring impact through defensible, experience-based metrics. The lessons of 2025 underscore the need for clarity, consistency, and outcome-driven approaches, ensuring that inclusion remains credible and resilient in the face of ongoing societal and regulatory changes.

IADS Notes: The challenges and recalibrations in DEI strategies described for 2025 are mirrored in recent retail industry developments, where heightened legal scrutiny and shifting societal expectations have forced major retailers to rethink their approach. As federal enforcement intensified in January 2026, companies like Walmart, Amazon, and Target either rebranded or scaled back their DEI initiatives to mitigate legal risks, with Target’s rollback resulting in a $10 billion valuation loss and shareholder lawsuit (Reuters, Jan 2026). Throughout late 2025, the adoption of the FAIR framework—prioritizing fairness, access, inclusion, and representation—emerged as a pragmatic response, allowing retailers to maintain authentic inclusion commitments while navigating political and market pressures (HR Dive, Oct–Nov 2025; Retail Dive, Feb 2025). This nuanced shift from explicit DEI language to broader inclusion and belonging has proven effective for talent retention and business resilience, as seen in Walmart’s strong market performance (From Day One, Jan–Feb 2025). Meanwhile, the industry’s split response, with some brands doubling down on inclusion and others retreating, underscores the importance of balancing compliance, stakeholder trust, and workplace culture (Forbes, Feb–Apr 2025). These trends confirm that while terminology and structures may evolve, the imperative for equitable and inclusive workplaces remains central to retail’s future.

What 2025 taught us about Inclusion—and what leaders must do next

What: DEI is evolving from performative initiatives to a core leadership strategy focused on belonging, equity, and measurable business outcomes.

Why it is important: The move from performative DEI to systemic inclusion supports stronger workplace cultures and measurable improvements in engagement and turnover.

The article argues that DEI is not fading away but maturing into a more strategic and impactful force within organizations. Rather than relying on superficial gestures or one-off events, companies are now embedding DEI into the very fabric of leadership and decision-making. This evolution is driven by a younger, more diverse workforce and customer base that demands authenticity and meaningful change. Leaders are shifting their focus from optics to outcomes, using inclusive leadership to foster environments where all employees feel valued and empowered to contribute. The text dismantles common myths about DEI, emphasizing that true inclusion extends beyond race and gender to encompass a broad spectrum of identities and experiences. By making belonging, equity, and leadership core priorities, organizations are seeing tangible benefits such as increased engagement, reduced turnover, and greater innovation. This transformation signals that DEI, when genuinely integrated, is essential for building resilient, high-performing retail businesses.

IADS Notes: The evolution of DEI in retail closely follows the trajectory outlined by Dr. Kiki Ramsey, as leading companies transition from performative actions to embedding inclusion and belonging into leadership strategies. In October 2025, HR Dive reported that major retailers like Walmart and Amazon adopted the FAIR framework, focusing on fairness, access, inclusion, and representation to enhance talent retention and business resilience. Similarly, Retail Dive in February 2025 highlighted how these companies rebranded their DEI initiatives to balance inclusive practices with business performance, while Target faced significant financial and legal repercussions for missteps. ESG Dive in September 2025 noted that although explicit DEI roles are declining, the integration of inclusion into core business functions continues to yield positive outcomes, such as improved employee satisfaction and workplace culture. HR Dive in December 2025 emphasized the importance of inclusive leadership for Gen Z employees, who seek recognition and involvement in decision-making, prompting retailers to adapt their leadership approaches. Finally, The Wall Street Journal in November 2025 discussed the shift toward cognitive diversity as a key driver of innovation and performance, with retailers adopting new frameworks to foster authentic workplace cultures and diverse perspectives. This collective transformation demonstrates that DEI is not vanishing but evolving into a foundational element of retail leadership and competitiveness.

DEI isn’t dying. It’s finally growing up. 

What: Disney responded to DEI controversy by reframing its commitments, removing divisive terminology while sustaining substantive inclusion policies.

Why it is important: The shift demonstrates how leading brands can uphold core values and workplace culture despite external controversies, aligning with recent industry patterns.

In 2025, Disney faced intense scrutiny as the corporate landscape in America grew increasingly hostile toward diversity, equity, and inclusion (DEI) initiatives. While many major companies, including Mattel, Target, and Walmart, retreated from public DEI commitments and erased related language from their communications, Disney charted a different course. Initially criticized for its lack of response to Florida’s Parental Rights in Education Act, Disney reversed its stance following employee protests, publicly opposing the legislation and pausing political donations. Despite severe political retaliation and a protracted legal battle, Disney did not abandon its values. Instead, it strategically shifted its language, removing explicit DEI references from reports and adopting terms like “belonging” and “inclusion.” This reframing allowed Disney to maintain its internal policies and culture, as evidenced by initiatives like Global Belonging Week and continued high scores in workplace equality indices. By focusing on substance over semantics, Disney demonstrated resilience, balancing stakeholder demands and public pressures while reinforcing its commitment to an inclusive workplace.

IADS Notes: Disney’s approach in 2025 reflects a broader trend among major retailers, such as Walmart and Amazon, who have shifted away from explicit DEI language in favor of inclusion and belonging, improving market performance and stakeholder relations (Oct–Nov 2025). This reframing aligns with industry-wide strategies to maintain substantive workplace policies while navigating political and legal pressures (Jan–Feb 2025; Feb 2025). The contrasting outcomes for companies like Walmart and Target underscore the importance of thoughtful adaptation and stakeholder management (Jan 2025), with successful brands focusing on measurable inclusion outcomes to ensure resilience and long-term success (Feb–Apr 2025).

How Disney navigated DEI backlash

What: The evolution of e-commerce in 2026 centres on agentic trade, B2B growth, seamless customer journeys, advanced logistics, and regulatory-driven data management.

Why it is important: These shifts reflect the convergence of technological innovation and regulatory demands, confirming trends identified in recent industry analyses.

E-commerce in 2026 is undergoing a fundamental transformation, driven by the rise of agentic trade where AI agents not only assist but also automate purchasing decisions. This shift requires retailers to structure product data for algorithmic selection, moving beyond traditional SEO to AI optimisation. Simultaneously, B2B e-commerce is rapidly expanding, with business buyers demanding the same seamless experiences found in B2C, while retaining complex pricing and approval workflows. The traditional e-commerce site is losing its central role as consumers interact with brands across distributed channels, making unified, real-time orchestration of inventory, pricing, and content essential. Logistics and data management have become strategic priorities, as delivery speed, returns, and product availability now directly influence loyalty and sales. Companies must balance operational efficiency with sustainability, leveraging advanced orchestration engines. Data sovereignty and compliance with evolving regulations are now critical for innovation and competitiveness, as retailers seek to control and leverage their data in a landscape shaped by privacy and security requirements.

IADS Notes: The transformation described aligns with findings from Journal du Net and McKinsey in September and November 2025, which emphasise the impact of agentic commerce and AI on retail infrastructure. E-commerce Europe, BCG, and McKinsey in October, June, and January 2025 highlight the surge in B2B e-commerce and the importance of digitalisation. Omnichannel strategies and seamless customer experiences are underscored by Journal du Net, Fashion Network, and ET Retail in November, October, and August 2025. Advances in logistics and intelligent operations are detailed by Journal du Net and Zebra in February and October 2025, while the growing importance of data sovereignty and compliance is supported by GDI, Bain & Company, and The Retail Bulletin in October, September, and August 2025.

5 e-commerce trends in 2026 and their impact on online sales infrastructure