designed to serve as platforms for discovery, decision-making and connection. Here’s a closer look at where this mixed-media world is evolving and what best-in-class brands are doing right. Rethinking the fitting room: from utility to experience For all the innovation happening across the retail floor, the fitting room, arguably the most intimate part of the in-store journey, remains static in comparison with other areas. Long treated as a functional space for trying on clothing, it’s beginning to get some long overdue attention as a high-potential zone for personalization, emotional connection and, thus, higher conversion. In some forward-thinking retail environments, that shift is already under way. You see this in the fitting rooms of brands such as Victoria’s Secret, where Crave Retail’s radio frequency identification (RFID) responsive technology is increasing basket size. Another area in fitting rooms pushing the boundaries is mood-responsive technology. Lego continues to evolve its retail presence by integrating digital elements within its physical stores. A look at what’s working, what’s next Retailers are beginning to experiment with biometric sensors that can interpret facial expressions and body language to detect a shopper’s emotional state. The idea isn’t to intrude, but to intuit, subtly adjusting the room’s lighting, soundtrack and digital interface to better support how the customer is feeling. If someone seems uncertain in the fitting room, shopping might slow down. These ambient shifts aim to reduce decision fatigue and foster a more thoughtful, less transactional experience. Meanwhile, smart mirrors and holographic displays are slowly moving beyond gimmick status. These tools let customers browse different colorways, see how an outfit moves or preview alternative styling options, all without leaving the fitting room. Holograms can even simulate how a garment might look layered or accessorized, offering visual comparisons in real time. The goal is less guesswork and more clarity in decision-making. Tying it all together is AI-enabled personalization. Integrated digital assistants, often available through touchscreens or apps, tap into browsing history, purchase data and wish lists to make tailored suggestions. Rather than having to flag down an associate or step out to grab a different size, customers can get real-time recommendations for complementary items, alternative fits or even exclusive offers, all from within the fitting room. Some brands are already making this future real by partnering with companies like Bodd 3D, which provides biometric body scans that help match shoppers to precise sizing, minimizing the frustration and returns that come from inconsistent fits. H&M has introduced holographic mannequins and touchscreen-enabled fitting rooms in Barcelona and Seoul, letting customers order additional items or explore styling suggestions without leaving the space. Retail tech on the floor: Focus on enhancing service Retail’s digital transformation isn’t confined to apps and checkout kiosks, it’s playing out on the store floor in subtle but powerful and purposeful ways. Today’s most effective tech isn’t about novelty or convenience. It’s about streamlining operations, empowering staff and making every step of the customer journey more responsive and as relevant as possible. Consider the evolution of the store associate. What if frontline staff were better equipped with AI-powered tools in the palms of their hands, from smart tablets to voice-enabled assistants, that put real-time insights at their fingertips? With informed query prompts, an associate can access inventory, pull up a shopper’s past purchase or suggest a product based on recent browsing behavior. These tools allow employees to offer a level of personalized service beyond what any consumer walking through the door would expect. Visual merchandising is also ripe for an evolution. Smart mannequins and adaptive displays are bringing a new layer of responsiveness to the floor. Content can now shift automatically based on local weather, time of day, or even customer flow patterns. A window display might feature rain gear in the morning and beachwear in the afternoon, all without human intervention. These systems make store environments feel more timely and curated, while reducing the labor involved in manual updates. Another emerging layer is the digital twin, a virtual replica of a physical store. While still in early adoption, this technology allows customers to explore a store’s layout, promotions, or inventory before setting foot inside. For brands, it opens the door to deeper omnichannel integration, provides valuable usage analytics and serves as a testing ground for new layouts or in-store concepts. Some brands are already embracing these tools in impactful ways. German shoe retailer Zalando is piloting generative AI fashion assistants that offer mood-based outfit suggestions, showcasing a preview of how conversational AI might shape future store service. Meanwhile, London’s Vivobarefoot has integrated 3D scanning and real-time rendering software to deliver hyper-personalized footwear fittings, redefining ‘try before you buy.’ Also, Sports Direct has launched a 60,000-square-foot flagship in Cardiff, Wales, that uses interactive mannequins to adapt product advice to real-time weather and shopper inputs, transforming passive displays into active retail assistants. Designing for Gen Alpha Gen Alpha is beginning to shape the future of retail, and they’re bringing with them a set of expectations fundamentally different from previous generations. Born into a world where digital is ambient and interaction is second nature, these consumers, now entering their tween years, don’t think of the world in terms of ‘online vs. in-store.’ For them, everything is just connected. They expect participation, personalization and play in fluid motion. Retailers who want to build lasting relevance with this generation will need to rethink store design entirely, positioning stores not just as places to shop, but as spaces for creative interaction. In stores catering to Gen Alpha, gamified experiences resonate. Gaming mechanics, reward points, unlocking digital perks and co-designing products are keeping young visitors engaged and invested. These aren’t gimmicks; they’re tools for creating stickier connections with a generation raised on platforms like Roblox and Minecraft. Nike is a notable example. Its PLAYlab concept in London is part retail, part interactive gym. Here, kids can test sports gear in motion through AI-enabled activities and responsive play zones, blending movement and brand storytelling in a way that feels less like shopping and more like fun. It’s an environment where fitness, product exploration and digital gaming seamlessly merge. Augmented reality (AR) and mixed reality (MR) are becoming standard tools in the Gen Alpha retail playbook. Brands are using them to layer in digital elements that enhance physical spaces, think sneaker customization platforms, avatar-based fitting rooms or store-wide scavenger hunts that guide young customers through themed missions. Brands like Lego continue to evolve their retail presence by integrating AR into flagship stores, allowing kids to bring digital play sets to life and interact with physical products before purchasing. Similarly, toy store FAO Schwarz has begun testing in-store AR zones where children can digitally design play scenarios and simulate how toys will perform, bridging imagination and decision-making. Across all of these examples, one principle remains consistent: Successful phygital retail is solving problems, not just adding features. Whether it’s simplifying fit in the dressing room, enhancing floor service or creating immersive experiences for digital-native shoppers, the best innovations are the ones that make interactions smarter, environments more adaptive and the overall experience actually more human. This story first appeared in the June 2025 issue of Inside Retail US magazine.