2025 Augmented Reality in Retail & E-Commerce Research Report

Executive Summary

Augmented Reality (AR) has transitioned from a novelty to a necessity in the retail and e-commerce landscape as we approach 2025. Consumer adoption has reached a tipping point, prompting brands to rapidly integrate AR into shopping experiences to enhance engagement, confidence, and sales. This report offers a data-driven analysis of AR trends in U.S. retail and e-commerce, featuring Fortune 500 case studies and expert insights that illustrate AR’s increasing impact.

Key findings:

• AR adoption is mainstream in 2025, with nearly 60% of the U.S. population—and almost all users of social and messaging apps—expected to be frequent AR users by then. Over 90% of American shoppers already use AR or are open to using it for shopping, and 98% of those who have tried AR found it helpful in making purchase decisions. Younger consumers are leading the way: 92% of Gen Z say they want to use AR tools for e-commerce.
  
  
• Retailers are investing in AR at scale: Research from Gartner shows that 80% of retailers will deploy AR as part of their customer experience strategy by 2025. A 2023 survey found that over half of retailers planned new AR/VR investments within two years. This reflects AR’s proven ability to bridge online and offline shopping—a critical advantage, as brands offering AR shopping features attract 71% of consumers who prefer interactive, “try-before-you-buy” experiences.
  
  
• AR drives conversion and reduces returns: By allowing shoppers to visualize products realistically, AR boosts purchase confidence. Shopify’s data reveals that products featuring 3D/AR content see an average of 94% higher conversion rates than those without it. Retail studies indicate that consumers engaging with AR are significantly more likely to convert – in fact, one report noted a 90% lift in conversion rates among AR users compared to non-AR users. Additionally, AR assists shoppers in making the right choice the first time: brands employing AR for visualization have reported up to a 40% decrease in product return rates, potentially saving millions in reverse logistics costs.
  
  
• “Try-before-you-buy” goes virtual: AR virtual try-ons for products like apparel, footwear, cosmetics, and eyewear have become essential. Shoppers can see items on themselves or in their space through their phones, bridging the imagination gap. These experiences boost customer confidence and sales – for instance, Shopify merchants using AR try-ons also report fewer returns alongside sales increases. In physical stores, AR smart mirrors engage visitors by overlaying digital clothing or makeup, enhancing fitting room traffic and delighting customers. Early pilots of AR mirrors (e.g., at Tommy Hilfiger) increased the number of try-ons and in-store foot traffic by up to 60%, highlighting AR’s ability to revitalize brick-and-mortar retail.
  
  
• AR storefronts and AR murals drive foot traffic. Brands are transforming store windows and outdoor displays into interactive AR experiences. AR storefronts overlay digital content on physical store exteriors, turning passive glances from passerby into engaging moments that entice shoppers to come inside. Retailers utilizing AR storefront activations have reported substantially higher engagement (BrandXR notes up to 11× engagement vs. static displays) and increased store visits. Similarly, AR murals—digital overlays on outdoor art or billboards—create buzz and promote social sharing. Major brands like Honda, Tripadvisor, and Lego have used AR murals in high-traffic locations to capture attention, with research indicating that nearly 70% of consumers take action after seeing interactive AR outdoor ads.
  
  
• Social media AR is the new word-of-mouth: AR face filters and lens effects on platforms like Snapchat, Instagram, and TikTok have become viral marketing tools. Over 300 million Snapchat users engage with AR lenses daily, while shoppers increasingly utilize social AR to discover and virtually try on products. Notably, Snapchat’s AR try-on campaigns have driven significant revenue – e.g., an AR makeup catalog lens for Ulta Beauty generated 30 million product try-ons and $6 million in sales in just two weeks. Brands from Gucci to Nike are experiencing positive ROI from social AR: Gucci’s Snapchat AR shoe try-on lens reached over 18 million users and boosted product page views by 188%, with a 25% increase in purchase intent. These examples emphasize how AR can enhance reach and conversion through engaging, shareable content.
  
  
• WebAR lowers barriers to entry: The rise of WebAR (web-based AR) allows consumers to launch AR experiences with a simple QR code scan or link, eliminating the need for app downloads. This frictionless access has broadened AR’s reach through mobile browsers, facilitating easier integration of AR into e-commerce sites and advertising for brands. Consequently, WebAR campaigns are proliferating – from interactive packaging to car showroom experiences – enabling anyone with a smartphone to participate in AR. Industry forecasts indicate WebAR will drive substantial growth in AR marketing spending through 2025 as brands capitalize on its accessibility.
  
  

In summary, AR in retail and e-commerce provides immersive shopping experiences that enhance engagement, boost customer satisfaction, and directly drive sales. What was once a futuristic experiment is now a practical tool: AR assists retailers in reducing the cost of consumer attention, personalizing marketing at scale, and blurring the line between digital and physical shopping. The following sections detail the current technologies – from AR storefronts to social lenses – along with data, case studies, and actionable insights for marketing leaders aiming to capitalize on augmented reality in 2025.

AR in Retail 2025: Market Overview and Trends

AR has firmly established itself as a strategic priority for U.S. retailers heading into 2025. Several converging trends explain why AR is reaching an inflection point:

• Ubiquitous consumer adoption: Thanks to Snapchat filters, Pokémon Go, and built-in AR on platforms like iOS and Android, augmented reality is now familiar to mainstream consumers. By 2025, an estimated 35–40% of U.S. internet users (roughly 60% of the total population) will be regular AR users. This means tens of millions of Americans will routinely use AR features—whether to add fun effects to photos or to preview products. Critically, consumers are open to AR in shopping: in surveys, more than 90% of American shoppers say they currently use or would consider using AR to assist with purchases. Among those who have used AR while shopping, a resounding 98% found it made the experience easier or more enjoyable. Shoppers see value in AR’s ability to answer questions like “How will this look on me or in my home?” before buying. In short, consumer appetite for AR-enabled shopping is high.
  
  
• Post-pandemic digital expectations: The COVID-19 pandemic accelerated e-commerce and habituated consumers to richer digital experiences. Unable to see products in person, many tried AR try-outs for the first time in 2020–21. This fueled enduring demand for “remote try-before-you-buy” solutions. Even as stores reopened, shoppers came to expect online retailers to provide interactive previews. For example, 43% of U.S. smartphone shoppers in beauty and apparel now expect brands to offer AR try-on features. AR evolved from a novelty to an expected part of a seamless omnichannel journey.
  
  
• Retailer adoption and investment: With consumer interest and competitive advantages rising, retailers are quickly embracing AR. Gartner analysts project that 80% of retail brands will use AR for customer engagement by 2025. In practice, this includes 3D product visualization on websites and in-store AR displays. Major retailers such as Walmart, Amazon, Target, and IKEA have all invested in AR capabilities, ranging from furniture placement tools to AR makeup try-ons. A 2023 Gartner survey reported that 56% of retailers plan new AR/VR investments by 2025, indicating that even more companies are following suit. This wave of adoption is fueled by AR’s impact on key performance metrics: higher conversion rates, larger basket sizes, and lower return rates. As one AR industry CEO put it, “We believe brands could utilise AR technology now to implement new approaches… and gain credibility among the new generation of customers.” Brands not experimenting with AR risk falling behind more innovative competitors.
  
  
• Improved technology and accessibility: The AR experiences of 2025 are significantly more advanced than those of just a few years ago. Thanks to modern smartphones' powerful processors and sensors, AR visuals are more realistic and accurate (for instance, IKEA’s AR furniture app auto-scales items with 98% size accuracy). Markerless AR can place 3D objects in a space without needing special codes, and LiDAR on high-end phones allows for more precise room scanning. Meanwhile, the barrier to trying AR has decreased: many experiences operate in a mobile browser (WebAR), and others are just one click away within popular apps. This ease of access has boosted usage. A Snap Inc. study noted that using our cameras to assist with day-to-day shopping resonates at a fundamental human level because we are visual beings – roughly 30% of the brain’s cortex is devoted to vision. AR taps into this visual nature with technology that is finally convenient enough for anyone to use, anywhere.
  
  
• Measurable ROI and proven use cases: Early AR retail pilots have yielded compelling results, converting skeptics into believers. We now possess concrete data and case studies demonstrating AR’s return on investment. For example, Sephora’s Virtual Artist AR app recorded over 8.5 million try-ons in its first year, giving users the confidence to purchase cosmetics online. Macy’s discovered that using VR/AR for furniture visualization in-store led to a 60% larger average basket and 25% fewer returns in pilot stores. Shopify reports that 3D/AR product media can lower returns by 40% by aligning customer expectations with reality. These achievements in reducing costly returns and increasing conversions create a strong business case for AR. Retail executives are increasingly referencing such figures in board meetings, making AR a budgeted initiative rather than merely an experiment.
  
  

In summary, consumer demand, retailer influence, and technological advancement have combined to make augmented reality a cornerstone of modern retail strategy. As we explore specific AR applications – from interactive storefronts to social media lenses – the overarching theme is that AR enhances the shopping journey at every stage. It combines the tactile reassurance of in-store shopping with the convenience of e-commerce, effectively humanizing digital commerce. The following sections delve into the major AR formats that are redefining retail and e-commerce in 2025, with a focus on the U.S. market.

AR Storefronts and Murals: Bridging Digital and Physical Retail

Retailers are reinventing window shopping through AR storefronts—interactive digital overlays on store windows and building façades—and AR murals, which transform outdoor ads and art into dynamic brand experiences. These technologies aim to attract foot traffic by providing passersby with a novel, share-worthy encounter with the brand before they even step inside a store.

AR Storefronts: An AR storefront transforms a physical store’s exterior into a digital stage. Using a smartphone or tablet, customers can point their camera at a storefront and unlock content like virtual products, characters, or showroom environments hovering right in the store window. This concept brings the engagement of online shopping to the sidewalk. For example, a sportswear store could display a virtual athlete performing in the window, or a fashion retailer might project a life-sized avatar modeling outfits behind the glass—all visible only through AR. These experiences pique curiosity and invite people to interact. Stores leveraging AR storefront displays report significant increases in engagement and visits. According to BrandXR (an AR platform provider), brands using AR storefronts have seen up to 11× higher customer engagement compared to static two-dimensional window displays. The interactive visuals not only stop people in their tracks but often compel them to enter the store to continue the experience or find the featured product. AR storefronts effectively blur the line between window shopping and screen shopping, providing an entry point that connects to in-store exploration.

Beyond engagement, AR storefronts create social media buzz. Shoppers who come across a cool AR window often record it or take selfies with it, sharing those on Instagram or TikTok and boosting the store’s visibility. The shareability of AR acts as a force multiplier – one clever AR storefront can go viral, transforming into free advertising. Many AR storefront setups feature prominent QR codes or prompts like “Scan to experience” on the window; Honda’s recent AR mural campaign, for example, used QR codes to easily onboard users into the AR view. This reduces friction and encourages participation. Notably, experiential-led retail initiatives have shown tangible success: in pilot projects, immersive AR window displays and in-store experiences have increased overall try-ons and foot traffic by up to 60% by particularly appealing to younger, tech-savvy consumers. In a time when brick-and-mortar stores seek traffic, AR has emerged as a powerful footfall magnet.

AR Murals and Interactive Billboards: Similar to storefronts, AR is being applied to outdoor advertising and murals to create “living” posters. An AR mural is essentially a static mural or billboard that comes to life through augmented reality. Consumers walking by can scan the mural with their phones and see 2D art transform into 3D animations, videos, or interactive elements popping out of the wall. Brands are using AR murals in high-traffic urban areas to engage modern audiences who might otherwise overlook traditional ads. For example, in late 2023, Honda launched “Wall of Dreams,” a series of AR murals at outdoor malls in California to promote its new electric vehicles. Shoppers who scanned these murals saw a virtual Honda eVTOL aircraft appear and fly across the real sky while watching eco-themed animations tied to Honda’s story. By blending into real environments (even syncing with the actual sky via sky segmentation tech), these AR activations captivated onlookers in ways that a static poster never could.

Crucially, AR murals don’t just entertain; they also influence behavior. Nearly 70% of consumers take action after seeing a digital out-of-home ad, according to research cited in Honda’s campaign. Those actions include searching for the brand, visiting a website, or entering a nearby store. In Honda’s case, the AR murals aligned with the holiday shopping rush, aiming to direct intrigued shoppers to their nearby auto displays. Other brands have experienced similar success: Tripadvisor deployed AR-enhanced street murals in NYC, Chicago, and LA (users could scan travel-themed murals to see interactive city scenes and get trip info), while fast-food chain Shake Shack utilized an AR billboard that allowed users to engage with a virtual burger-building game. These campaigns also generate earned media and word-of-mouth, as people love sharing these “hidden” AR surprises with their friends. Companies like Lego have similarly employed AR in outdoor ads to let kids animate Lego characters on posters. The strategy is clear: use AR to transform momentary impressions into deeper, memorable engagements.

From a strategic perspective, AR storefronts and murals are valuable because they connect online and offline audiences. They can be seen as physical-world click-throughs. A passerby scanning an AR storefront may visit the store’s e-commerce site or social media page for more information (many AR experiences include clickable links or calls-to-action). Conversely, a customer who first discovers a brand online might feel encouraged to visit the store to experience an AR installation in person. This synergy enhances omnichannel marketing efforts. Retailers implementing AR installations often align them with broader campaigns – for example, a new product launch may be simultaneously promoted through AR murals in cities and AR filters online, creating multiple touchpoints.

Key benefits and results: Retailers experimenting with AR storefronts and murals have reported several benefits:

• Higher foot traffic and store entries: AR visuals capture attention; even those who don’t activate the AR still notice the display. Those who do engage often enter, intrigued and ready to explore. As noted, pilot AR experiences have resulted in up to 60% more store visitors in some cases.
  
  
• Enhanced brand image: Offering AR positions a brand as innovative and engaging. In fact, nearly half of smartphone shoppers say brands with AR experiences are “more innovative” than those without. AR signals a future-forward approach for traditional retailers seeking to modernize their image.
  
  
• Social media amplification: One study found that AR experiences generate double the engagement of non-AR campaigns and have 300% higher sharing rates on social media. An interactive mural can therefore trigger a surge of organic social posts, extending reach far beyond the physical location.
  
  
• Customer dwell time: AR encourages customers to linger longer at the storefront or within the store environment, which correlates with a higher likelihood of purchase. For example, the average interaction time with an AR ad is about 75 seconds—far above the 2-3 second glance at a static sign. This deeper engagement can lead to more time spent browsing products.
  
  

Moving forward, we can expect to see more AR storefronts and OOH (out-of-home) campaigns in 2025. As AR creation tools (like no-code platforms) become more accessible, even mid-sized retailers can implement seasonal AR window displays or collaborate with artists to produce AR murals. The cost is often comparable to traditional print signage plus some 3D development—a worthwhile investment if it drives significantly more traffic. For marketers, the takeaway is that the physical retail canvas can be digitally augmented to surprise and delight consumers, creating that all-important bridge from “just looking” to actively shopping.

Virtual Try-Ons: AR “Try Before You Buy” Goes Mainstream

One of the most revolutionary uses of AR in retail is virtual try-on technology. This advancement allows shoppers to simulate products on themselves or in their surroundings using a smartphone camera—effectively bringing fitting rooms and product demonstrations directly into the customer’s home. By 2025, virtual try-ons have become standard in fields like fashion, beauty, and furniture, significantly enhancing online shopping confidence.

AR in Fashion & Apparel: Buying clothes or shoes online has always involved uncertainty about fit and style. AR addresses this by allowing customers to virtually try on items. Using either a retailer’s app or social media filters, shoppers can point their phone at themselves and see a dress, shirt, or pair of sneakers overlaid on their live image. Advances in AR body-tracking mean these virtual garments move with the person in a realistic manner. Major footwear and apparel brands have embraced this: Nike introduced AR try-on for sneakers in its app and saw notable engagement along with a measurable sales boost (Nike reported an 11% increase in sales from AR-driven product try-ons in one early campaign). Luxury retailer Gucci partnered with Snapchat to let users virtually try on Gucci shoes via an AR Lens – a first-of-its-kind global AR shoe try-on that reached millions. The Gucci AR Lens was hugely successful, garnering over 18 million engagements, and it didn’t just entertain users – it generated real interest in the products, boosting Gucci’s product page views by 188% and raising purchase intent by 25% among those who tried the AR shoes. Such results demonstrate that virtual try-ons can shift customers from browsing to buying by allowing them to “experience” the product personally.

In the broader market, try-on capabilities are becoming essential for certain products. For instance, eyeglasses and sunglasses retailers (Warby Parker, Zenni, etc.) have integrated AR try-on into their mobile sites, allowing customers to visualize frames on their faces. The cosmetics sector has also been transformed by AR, enabling users to sample different makeup looks virtually. Sephora’s Virtual Artist app, which features AR makeup try-on, recorded over 200 million shades of eyeshadow and lipstick tried by users within a few years, leading to higher online makeup sales and fewer returns (customers were less likely to purchase the wrong shade). L’Oréal, having acquired the AR beauty tech company ModiFace, has implemented AR try-on for its brands across various platforms—from Maybelline’s website to Amazon’s beauty section. A key metric: L’Oréal’s AR experiences drove a 70% increase in app downloads for some of its brands and significantly boosted product sales by encouraging users to playfully try new looks.

Home Goods and Furniture Visualization: It’s not just wearable items—AR try-before-you-buy is equally impactful for home products. Furniture and home décor retailers now routinely offer 3D AR visualization, allowing customers to place true-to-scale 3D models of sofas, tables, or appliances into their living spaces via their phone cameras. Pioneered by IKEA’s Place app in 2017 (which has been downloaded over 8 million times, reflecting consumer interest), this approach has been adopted by Home Depot, Wayfair, Amazon, and others. Shoppers can stand in their living rooms and see exactly how a new couch would look and fit, even walking around it as if it were really there. This solves a major purchase barrier—uncertainty about size and style matching. The payoff for retailers is substantial: in early trials, customers who used AR to visualize furniture were much more likely to convert and far less likely to return items. Macy’s, for example, used VR/AR for furniture in select stores and reported that return rates on those items dropped to under 2%, compared to ~5–7% normally. Separately, Shopify noted that merchants using AR for product visualization saw 40% fewer returns. Fewer returns not only indicate happier customers whose expectations matched reality, but also translate to significant cost savings in shipping and restocking.

Confidence and Conversion Boost: The primary benefit of AR try-ons is enhanced purchase confidence. When consumers can see an item on themselves or in context, they are less hesitant to buy. This directly leads to higher conversion rates online. Multiple studies support this: one survey found that 71% of shoppers would shop more frequently if AR were available, as it makes the experience more realistic. We also have solid sales data – as mentioned earlier, Shopify’s analysis across its e-commerce platform showed an impressive 94% higher conversion rate for products with AR/3D content views. In other words, nearly double the buyers when AR visualization is utilized. Retailers also report larger average order values; shoppers tend to purchase more when they feel confident in their selections. The cosmetics brand Charlotte Tilbury, for instance, installed AR magic mirrors in its flagship store to allow patrons to virtually sample makeup, contributing to double-digit growth in try-before-you-buy sales and cross-selling more items per customer. AR try-ons can even boost sales in physical stores – customers use the AR feature online to narrow down choices and then come in-store to finalize their purchase, or vice versa.

Case in point: U.S. apparel retailer American Eagle added an AR virtual try-on for its holiday campaign outfits on Snapchat. The AR experience not only received millions of views but also drove significant traffic to their website’s product pages (Snapchat reports AR-driven referrals that convert to purchases, and American Eagle saw strong click-through from the AR Lens to their e-commerce catalog). Such cross-channel success demonstrates AR’s versatility in the shopper journey: it can serve as both a top-of-funnel engagement tool and a bottom-of-funnel conversion tool simultaneously.

While virtual try-on technology isn’t perfect— for example, clothing drape simulation is still evolving and works best for accessories or fitted items— the ongoing advancements in AR realism are closing the gap between the virtual world and reality. In 2025, we are witnessing more sophisticated avatar-based try-ons, where shoppers can input their body measurements or scan themselves to create a 3D avatar, and then try clothes on that avatar. This is emerging on some fashion e-commerce sites and could further personalize the shopping experience.

For marketers and CMOs, virtual try-ons offer tangible benefits:

• Higher conversion and sales: As noted, increasing online conversions by double digits and generating incremental sales from “trial” behavior (customers often try on multiple items and may end up buying more than one).
  
  
• Lower returns and higher satisfaction: customers receive what they expect, minimizing disappointment. This enhances customer lifetime value and loyalty.
  
  
• Rich data and engagement: AR try-on apps provide data on which products are tried on most and how long users engage, offering insights into consumer preferences. Engagement times are impressive—users may spend several minutes experimenting with different looks, resulting in far more interaction than a standard product page.
  
  
• Competitive differentiation: offering a seamless AR feature can set a brand apart. For example, if two retailers both sell similar sunglasses, the one with the instant AR try-on has an advantage with today’s tech-savvy shoppers. It’s noteworthy that 60% of Gen Z say AR makes shopping feel more personal – a key to winning younger cohorts.
  
  

In summary, AR virtual try-ons have transitioned from experimental to essential in retail. They enhance the online shopping experience by reintroducing a sense of tangibility and personalization that was previously lacking. As the technology continues to evolve (with improved physics, additional categories like AR for jewelry, and integration into standard web browsers), we can anticipate that virtual try-before-you-buy will become as commonplace as customer reviews in e-commerce. Brands that invest in this area are effectively future-proofing their shopping experience for a generation that demands “show me, don’t tell me” before they buy.

AR Mirrors and In-Store Experiences: The Digital Fitting Room

While virtual try-ons bring the fitting room to the customer, AR mirrors (often called “magic mirrors”) introduce digital innovation into the physical fitting room. These mirror-like displays use augmented reality to allow shoppers in a store to virtually try on outfits, accessories, or makeup without physically changing clothes. In 2025, AR mirrors and similar in-store AR experiences are emerging in forward-thinking retail stores, creating immersive omnichannel showroom environments.

An AR smart mirror typically resembles a full-length mirror or vanity mirror with a built-in screen and camera. As a customer stands in front of it, the mirror’s AR system can overlay selected products onto the customer’s reflection in real time. For example, in a clothing store, a shopper can cycle through different jacket styles and see each one appear on their body in the mirror without having to undress or grab each piece. The mirror uses body tracking to adjust the garment to the person’s movements. It’s essentially the in-store counterpart to smartphone AR try-ons, but with the advantage of a life-sized view and often higher fidelity rendering.

Driving engagement and efficiency: AR mirrors enhance the try-on process, making it more engaging and saving customers time. A major pain point in apparel retail – the hassle of undressing and trying on multiple items – is alleviated, encouraging shoppers to explore more options. One notable case study in luxury fashion is Tommy Hilfiger’s AR mirror installation for a special collection launch. Positioned in flagship stores, the AR mirror allows shoppers to virtually wear pieces from the new collection, including some digital-only designs with special effects. The outcome: younger shoppers flocked to it, and Tommy Hilfiger experienced a significant increase in both time spent in store and items tried. According to Tommy, experiential retail tech like this led to a 60% increase in the number of try-ons and store foot traffic during their tests. For store operators, AR mirrors can also alleviate pressure on fitting rooms and inventory – fewer physical garments are handled, and there’s less need to stock every size on the floor for trial when a digital version can be previewed. Some stores even enable customers to instantly order items in different sizes or colors from the mirror interface, merging online inventory with the in-store experience.

Beauty and accessories AR kiosks: AR mirror technology isn’t limited to clothing. Beauty retailers have embraced AR “mirror” kiosks where customers can sit and virtually test numerous makeup shades or styles of lashes, hair colors, and more. Ulta Beauty and Sephora have both introduced such experiences, allowing customers to try various lipstick shades on their lips via the screen, compare before/after looks, and then apply their favorites in real life. This drives product discovery and cross-selling, as shoppers often purchase items they wouldn’t have normally tried. It’s noteworthy that when Sephora launched its digital Artist kiosks in select stores, those locations saw increased conversion rates for cosmetics and longer engagement times, as people treated it almost like an enjoyable consultation. Jewelry stores are also exploring AR displays that let customers see a watch or necklace “on” them without touching the merchandise, which is particularly useful for high-end items.

Blending physical and digital catalogs: Some apparel retailers use large AR displays that show shoppers and allow them to insert any item from the online catalog. This effectively provides infinite “inventory” to try on in-store. It serves as a bridge between e-commerce and physical retail – if something isn’t in stock at that location, you can still visualize it on yourself and then have it shipped. Nike’s innovative NYC flagship featured an AR-assisted experience where pointing an app at displays would reveal additional styles on a screen, along with in-store AR gamification (finding hidden AR content to unlock limited-edition shoes). All of these efforts aim to enrich the in-store journey so it competes with the richness of online data and selection.

Beyond mirrors, retailers are also using in-store AR through shoppers’ own phones. For example, Target’s app has an AR feature for store aisles—just point your phone at a shelf and see digital information or reviews appear above products. Home improvement stores like Home Depot have implemented AR overlays in the aisles for how-to guides or to view a power tool’s specifications when pointing at it. These types of informational AR enhance the shopping experience by delivering content in context.

The impact of in-store AR on sales can be significant, although it is sometimes indirect. It may not always result in an immediate sale through the device, but it improves customer satisfaction and the likelihood of purchase. A study by Capgemini found that 75% of consumers who used AR or VR in shopping reported higher satisfaction with the experience. Happier customers often translate to increased spending and loyalty. Additionally, AR mirrors and displays frequently collect analytics (e.g., which items were virtually tried on the most), providing retailers with data to enhance merchandising and marketing.

Challenges and Future Outlook: AR mirrors still incur costs (hardware, setup) and have limitations (they require space and staff to assist customers when needed). However, costs are decreasing, and many retailers view them as worthwhile experiential investments—the type of thing that makes visiting a store exciting (something e-commerce can’t fully replicate). As AR glasses eventually achieve mainstream adoption in the coming years, we might see even more seamless in-store AR (imagine seeing yourself wearing an outfit through smart glasses instead of a fixed mirror). For now, AR mirrors remain a standout attraction in pilot stores and are likely to expand if the ROI continues to show positive signs.

For marketing executives, the key takeaway is that in-store AR experiences can distinguish your physical locations and create the wow factor that gets people talking. They embody the concept of experience per square foot—utilizing technology to extract more value from the retail space. When planning AR mirrors or similar installations, it’s crucial to integrate them with your omnichannel strategy (e.g., allowing login or wishlisting so users can save their AR try-ons and purchase online later). When executed properly, AR mirrors not only drive immediate sales but also generate content and insights that enrich the wider marketing ecosystem (customers might share a snapshot of themselves in the AR mirror look, effectively promoting the brand). As 2025 approaches, anticipate more stores transforming their fitting rooms and showrooms into interactive playgrounds with AR, maintaining retail's advantage over purely online shopping.

WebAR: Frictionless Augmented Experiences via the Browser

One of the catalysts for AR’s rapid growth in retail is the emergence of WebAR—augmented reality experiences that run directly in mobile web browsers, without requiring a dedicated app. WebAR has significantly lowered the barrier for consumers to engage with AR activations, which in turn has encouraged more brands to incorporate AR into their campaigns and websites. By 2025, WebAR is set to become a practical marketing and e-commerce tool.

Traditionally, high-quality AR experiences required users to download specific apps, such as a retailer’s app or platforms like Snapchat. This posed a challenge, as many consumers were unlikely to install an app just to access a single AR feature. WebAR eliminates this barrier by utilizing standard web technologies, such as AR-enabled JavaScript APIs, allowing users to launch AR with a simple tap on a link or by scanning a QR code. The camera feed and 3D content operate within the browser you already have, whether it’s Safari, Chrome, or another option.

For retailers and brands, WebAR offers instant reach—any customer with a smartphone can access AR content within seconds. We witnessed this during the pandemic with innovations like QR code menus in restaurants; now the same convenience is applied to shopping and advertising. For instance, a product QR code on packaging might invite the customer to “See this product in AR.” Scanning it opens the phone’s browser and, using WebAR, displays the product virtually in the customer’s space. No apps, no fuss. This technique has been applied to everything from LEGO toy boxes (showing the completed toy in AR) to large appliances (view a 3D fridge in your kitchen before purchase).

Marketing campaigns leveraging WebAR are on the rise. A prime example is Coca-Cola’s 2022 holiday WebAR campaign, in which Coke printed QR codes on its cans that launched an AR experience of a singing, animated Santa Claus when viewed through the browser—a fun addition that encouraged social sharing. Automotive brands are also significant adopters of this technology: an ad might feature a prompt to “See the car in your driveway.” Users tap it, and suddenly an AR version of, say, a new electric SUV appears parked in front of them (through their camera view), allowing them to walk around and even look inside. This WebAR approach was utilized by Toyota and Audi for new model launches and attracted tens of thousands of users, many engaging for over a minute—far exceeding the interaction levels of a standard banner ad. Honda’s AR murals mentioned earlier also employed WebAR delivery (via QR code scan) so that any mall-goer could instantly engage without having to download a Honda app.

WebAR in e-commerce sites: Retailers are increasingly embedding AR viewers into their standard websites. For example, the furniture retailer Wayfair uses WebAR to provide 3D viewer links on product pages – by clicking “View in Your Room,” the site can directly prompt an AR view in your browser. This streamlines the user journey (no separate app needed) and thus enhances the use of the AR feature. The technology has improved to support high-quality 3D models and even interactive features (like choosing different colors or options on the fly). One notable stat: some AR platform providers have reported that WebAR experiences can reach 2-3× more users than equivalent experiences requiring an app, simply due to convenience. Higher reach amplifies AR’s impact on awareness and sales.

From a business perspective, WebAR provides a more budget-friendly and agile method for deploying AR content. Brands no longer need to invest heavily in app development or concern themselves with user acquisition; they can host AR experiences on the web and update them as necessary. There are now specialized WebAR platforms (8th Wall, Zappar, Adobe Aero, etc.) that agencies and brands utilize to create and publish AR content compatible with various browsers. The result is a surge of creative applications: AR treasure hunts that direct users to stores (via the web), AR instructional manuals (scan a product to view AR instructions in a browser), and AR product customizers (e.g., point your camera at your car and virtually test new rims or paint jobs through a car brand’s mobile site).

Impact on customer experience: The beauty of WebAR lies in how seamlessly it integrates into existing customer touchpoints. For instance, print materials and mailers can now incorporate an AR component: a home décor catalog could feature an image of a lamp alongside a QR code that says “See it in your room.” The user scans it and instantly sees a life-sized lamp in AR exactly where they intend to place it. This bridges the gap between inspiration and purchase. Metrics from such initiatives are encouraging – AR firm Vertebrae (now part of Snapchat) noted that providing AR visualization for products led to shoppers being 19% more likely to make a purchase in their studies. WebAR enhances this by making the experience just one click away.

Retailers are also utilizing WebAR in physical stores through signage. For instance, signage in an aisle might say, “Learn more about this product – scan to view in AR.” Especially for bulky items or products not on display, WebAR can showcase the item in full 3D. Best Buy experimented with this to display big-screen TVs in proper scale on your wall via an in-aisle QR code. The flexibility of WebAR allows the same AR content to meet omnichannel needs (in-store info and online tryout).

Challenges: While WebAR is advancing, it still has some limitations. Highly complex 3D models or very interactive scenes can be demanding for a browser and might not perform as smoothly as in a native app. There are also variations across browsers (Apple’s Safari vs. others) in how AR is managed, which developers must optimize for. However, with each browser update, capabilities and performance improve. By 2025, WebAR can effectively handle most retail use cases, and it will only continue to improve.

For marketers, adopting WebAR means viewing AR as an integral part of campaigns – just like you would consider video or social media. It requires 3D content creation, which presents a new skill set for many marketing teams, but several agencies and platforms are available to assist with model creation and AR deployment. The ROI can be measured directly through WebAR analytics: you can track scans, time spent, interactions (such as which product variant customers looked at in AR), and even link to conversions. If a user views a couch in AR and then adds it to their cart, that can be attributed.

In short, WebAR is democratizing AR. It ensures that AR isn’t limited to big companies with popular apps; any brand can introduce an AR experience into the consumer’s path with minimal friction. This development has sparked a creative surge in AR marketing and will continue to do so. We foresee WebAR being used extensively in retail marketing come 2025: from interactive AR store windows that require only a scan, to on-package experiences that deepen storytelling (as with 19 Crimes wine’s AR – now possible via web). The implication for retail executives is clear: enabling quick AR access via the web can significantly broaden the audience for your AR content, thereby amplifying the technology’s benefits across awareness, engagement, and conversion.

Social AR Filters: From Viral Engagement to Social Commerce

No discussion of AR in retail would be complete without examining social media AR filters and lenses, which have become a cultural phenomenon and a potent marketing tool. Platforms like Snapchat, Instagram, Facebook, and TikTok feature AR capabilities that allow users to overlay digital effects on themselves and their surroundings – from face filters and avatar effects to full product try-ons. For brands, social AR provides a way to engage millions with interactive branded experiences and even drive direct sales through social commerce features.

Scale of social AR usage: Social networks have effectively brought AR to the masses. Snapchat is a pioneer – as of 2024, more than 300 million Snapchat users engage with AR every day on average, comprising over two-thirds of its daily active users. The company has consistently claimed that over 70% of Snapchatters use AR features on the first day they download the app. Instagram and Facebook (via Meta’s Spark AR platform) also offer an extensive library of AR effects, and TikTok is swiftly expanding its AR offerings (branded effects on TikTok have achieved significant viral moments). This means there is a ready audience of hundreds of millions comfortable with AR – a goldmine for marketers looking to reach especially younger demographics. Gen Z, in particular, expects interactivity: over 60% of Gen Z say AR ads are more personal and attention-grabbing. In fact, Gen Z is more inclined to purchase a product if they experience it through AR first, and 92% of Gen Z consumers expressed a desire to use AR for shopping experiences. These statistics underscore why brands are eager to appear in the AR feeds of young shoppers.

Brand-sponsored AR lenses: Many brands have developed their own AR filters to allow users to “try on” branded looks or simply enjoy brand-themed effects. These often go viral when executed creatively.

For example, Snapchat Lens campaigns:

• Gucci’s AR shoe try-on was launched as a sponsored global Snap Lens. Users could virtually try on Gucci sneakers, share videos featuring the shoes, and click to buy. This lens not only attracted millions of engagements but also directly resulted in sales and a positive Return on Ad Spend (ROAS), according to Snapchat’s case study.
  
  
• MAC Cosmetics launched a Snapchat AR campaign for a new lip color line, allowing users to virtually test shades. The campaign reached 1.3 million users in the target market, and MAC reported an increase in online lipstick sales during this period, attributing the growth to AR engagement that helped reduce hesitancy.
  
  
• Nike and Jordan Brand have released limited-edition sneakers by using Snap Lenses for scavenger hunts (e.g., pointing the Snap camera at specific locations to unlock an AR model of the new sneakers and a purchase link). These highly gamified AR drops have sold out within minutes, demonstrating AR’s power to engage and convert.
  
  

On Instagram, AR filters (which users find in the app’s Effects gallery or via a brand’s profile) have similarly fueled campaigns. The democratization of effects means that even smaller brands can create filters, and if they’re fun, users will share them. A notable example is Disney’s Instagram AR filter for Star Wars, which displayed a rotating selection of Star Wars characters’ holograms on the user’s hand. Millions used it and indirectly promoted the franchise ahead of a movie release. While not selling a product directly, it kept the brand top-of-mind and drove fan engagement.

Social AR for direct commerce: Social platforms are increasingly integrating AR with shopping features:

• Snapchat’s Lens can include a “Shop Now” button or even a catalog carousel. For example, a user playing with a handbag try-on Lens can tap to see details and purchase that bag without leaving the app. This transforms AR engagement directly into a point-of-sale. Snapchat reports that its AR ads often outperform traditional ad formats—one internal figure suggests that AR Lens ads can lead to a 19% higher purchase intent compared to standard ads.
  
  
• Instagram enables product tagging in AR effects. A beauty brand’s AR filter may allow you to try on a virtual eyeshadow, then link to the product page on Instagram Shopping for purchase.
  
  

TikTok is also testing AR commerce; they piloted a “try-on” ad format where, for example, a makeup brand’s TikTok ad used AR to allow viewers to see the makeup on their own faces and then click to buy. Given TikTok’s influence on buying trends (the “TikTok made me buy it” phenomenon), AR presents a natural extension to make those trends even more compelling through personal experience.

Viral challenges and user-generated content: A significant strength of social AR is its virality. Brands frequently launch AR effects as part of a challenge or trend. For instance, a fashion brand might initiate a #AROutfitChallenge, encouraging users to post videos using a branded AR outfit filter. If the concept gains traction, thousands of users will create content that essentially serves as advertising for the brand. This user-generated content can greatly amplify reach at a fraction of the cost of paid media. It effectively transforms the audience into marketers through interactive content.

Measuring success: Social platforms provide metrics for AR campaigns—impressions, shares, average playtime, etc. The engagement time is particularly revealing: a good AR lens might capture a user’s attention for 20-30 seconds or more, which is significant compared to typical ads. For instance, Snap revealed that the average playtime with their AR Lenses is around 15 seconds, and top-performing branded lenses often exceed 60-90 seconds of engagement per user. That’s an eternity in advertising terms—and it reflects users genuinely enjoying the interaction. Furthermore, social AR can drive traffic: the Ulta Beauty case cited earlier, where a Snap Catalog Lens led to 30 million try-ons and $6M in sales in two weeks, is evidence that AR can directly fuel conversion, not just upper-funnel metrics.

Best practices: What we see in 2025 is that the most effective social AR campaigns:

• Align with the brand identity: The AR experience should reinforce what the brand represents or highlight the product in a relevant manner. For example, a car brand might use AR to allow users to place a life-size car next to them (reinforcing the product), while a snack brand might implement a fun AR game featuring its mascot (reinforcing brand personality).
  
  
• Encourage sharing: Include interactive or humorous elements that users will want to show their friends. Many filters modify users' appearances (like the famous Snapchat dog ears or beauty filters). A retail example: Home Depot created a Halloween AR experience on Facebook where users could project animated Halloween decorations onto their houses to see how they’d look – people shared their spooky AR-decorated homes, inadvertently promoting Home Depot’s Halloween collection.
  
  
• Keep it simple and smooth: Users will skip an AR lens if it’s too complicated or doesn’t work flawlessly. Technology has improved so that good face tracking and environmental tracking are standard—marketers should leverage these to ensure the AR content feels high quality (nothing breaks immersion faster than a glitchy AR asset). Successful try-on filters get the proportions right and accommodate various skin tones, which require testing and calibration during development.
  
  

For retailers and marketing strategists, social AR provides an incredibly engaging channel to integrate into campaigns. It is particularly effective for brand awareness, product launches, and targeting younger consumers on their home turf (social apps). It also offers a wealth of content as people share their AR experiences. One strategic approach is to coordinate social AR with other AR channels: for instance, a makeup brand might have an AR try-on on its website (WebAR or app) and simultaneously release a fun filter on Instagram featuring the same products. The former targets serious purchase intenders, while the latter aims for general engagement – together, they reinforce each other and broaden the funnel.

In conclusion, AR filters on social media have transformed passive scrolling into active trial and play. They embody the fusion of entertainment and shopping – sometimes coined “shoppertainment.” As social platforms continue to refine AR commerce features, we’re likely moving toward a world where a significant portion of online shopping, especially in fashion and beauty, occurs through social AR. Marketing leaders should therefore view social AR not merely as a gimmick, but as a strategic touchpoint that can drive awareness, enhance brand loyalty (through interactivity), and even close sales in innovative ways.

AR Product Packaging: Interactive Storytelling at Point of Sale

Another avenue where augmented reality is making waves is in product packaging. By adding AR components to labels, boxes, or in-store displays, brands can transform packaging into a digital content platform, enhancing storytelling, providing product information, or creating an enjoyable customer experience after purchase. In 2025, more brands are experimenting with AR on packaging to set their products apart on the shelf and deepen engagement with customers after purchase.

A hallmark example is the wildly successful 19 Crimes wine campaign. 19 Crimes, a wine brand, printed its bottles with images of historical convicts (the brand theme) and developed an AR app that brings those images to life. When viewed through the Living Wine Labels AR app, each bottle’s character (like an old mugshot photo) animates and tells their story – effectively making the wine label talk to you. This innovative packaging experience, launched a few years ago, became a viral sensation among customers and in the industry. The results were impressive: the 19 Crimes AR app was downloaded over 5.5 million times, and the AR campaign contributed to a 40% increase in the wine sales volume for the brand. By winning multiple marketing awards, 19 Crimes demonstrated that AR can breathe new life into a mature product category (wine bottles aren’t typically recognized for digital innovation) and create a deep emotional connection with consumers through storytelling. Shoppers bought the wine not just for the taste, but for the experience of unlocking a story with AR – and many showcased it to friends at dinner parties, essentially becoming brand ambassadors.

Following that success, other beverage and CPG (consumer packaged goods) brands dipped into AR:

• Beer and spirits brands have utilized AR labels for both entertainment and education. For instance, Jack Daniel’s developed an AR experience that, when scanning the bottle, revealed a virtual distillery tour and trivia regarding the whiskey’s history. This type of content enhances value for the customer and reinforces brand heritage.
  
  
• Food packaging with AR includes items like cereal boxes that trigger AR games for kids or candy bar wrappers that, when scanned, display an animated character or enter you into a contest.
  
  
• Cosmetics packaging: Some high-end makeup brands utilize AR in their product packaging or in-store displays. Scanning a product box may reveal a quick tutorial video via AR or demonstrate how the color appears on a model’s face, right next to the physical product.
  
  
• Electronics and appliances: AR codes on boxes enable users to visualize the product assembled or in use. IKEA’s flat-pack furniture boxes, for example, could feature a code to display the fully built furniture in your room, tying into their Place app functionality but at the point of sale in-store.
  
  

What AR packaging achieves is extended customer engagement beyond the initial purchase. It can transform a one-way packaging design into a two-way interaction. Brands appreciate this because it provides a chance to convey much more information (or emotion) than a label typically can. Want to list detailed instructions, recipes, or origin stories? AR can accomplish that without cluttering the physical packaging. During the COVID era, even QR codes for menus taught people to use their phones on packaging more frequently, so consumer comfort with scanning codes is at an all-time high.

From a marketing perspective, AR packaging often helps in brand building and loyalty:

• It offers a unique experience that can delight customers (and hopefully encourage them to share it on social media, generating buzz).
  
  
• It can effectively reinforce brand values or messaging. For instance, a sustainable products brand might utilize AR to illustrate the eco-friendly journey of their product from raw materials to the shelf, thus strengthening the customer’s connection to the brand’s mission.
  
  
• It can also serve as a cross-selling or upselling channel. Imagine scanning a snack package and receiving an AR coupon for another product in the line, or viewing an AR demonstration of complementary accessories for an electronics item you purchased. This is all feasible with packaging AR and has the potential to drive incremental sales.
  
  

Additionally, data collection offers significant benefits: with AR apps or WebAR scans, brands can gather data on how frequently packages are scanned, at what locations, etc. (with user consent). They can also prompt users to sign up for newsletters or loyalty programs through the AR experience. In-store, if someone scans a product before purchasing, that serves as a strong intent signal that can be measured.

A key development making AR packaging easier is WebAR (as discussed earlier). Initially, 19 Crimes required a separate app download. Today, a brand can achieve a similar AR label through a simple web link or QR code scan, reducing friction for users. This likely means we’ll see more widespread adoption because it’s easier to convince a customer to “scan to see something cool” than to have them download an app for each product.

Challenges: AR packaging must be implemented thoughtfully. Without awareness or instruction, consumers may not realize a package has an AR feature. Therefore, clear calls-to-action (e.g., a small icon or text like “Scan with your phone to unlock an experience”) are crucial. There is also a content cost – someone must create those AR animations or stories, which can be complex. Brands should ensure the AR content justifies the effort (if it’s underwhelming or gimmicky, customers won’t engage again). However, when executed properly, as 19 Crimes demonstrated, it can deliver substantial ROI in terms of both sales and brand differentiation.

ROI evidence: Beyond 19 Crimes, consider the broader trend: an industry survey found that nearly half of consumers say AR content on packaging would make them more loyal to the brand, and 61% reported they prefer retailers who offer AR experiences. These attitudes suggest that companies embracing interactive packaging could gain a competitive edge in customer perception. Moreover, AR packaging can enhance word-of-mouth – people naturally discuss a cool AR can or box they encountered, as it’s still novel enough to spark conversations.

In conclusion, AR-infused packaging transforms products into platforms. It presents an opportunity for storytelling and engagement right at the point of use. For CMOs and brand managers, it’s worthwhile to evaluate how your product packaging could be enhanced to delight customers and reinforce your brand story. Whether it’s adding an AR tutorial, a game, a collectible digital surprise, or a narrative, the technology enables creativity to flourish on what was once static print. As early pioneers have shown, this can lead not just to one-off engagement but also to tangible sales growth and brand loyalty. In a crowded marketplace, AR on packaging might be the differentiator that convinces a customer to choose your product off the shelf over a competitor’s.

Actionable Insights and Recommendations for Marketers

Augmented reality’s growing role in retail and e-commerce presents a compelling opportunity for marketing leaders. To utilize AR effectively, consider the following actionable insights and best practices derived from the 2025 trends and case studies:

• Integrate AR into the Customer Journey: Treat AR not as a gimmick but as a seamless part of how customers discover, evaluate, and purchase products. Examine your buyer journey for points of uncertainty or low engagement—these are ideal candidates for AR solutions (e.g., virtual try-on for products that have style/fit concerns, AR demos for complex products, AR signage for wayfinding in stores). Ensure AR experiences link to next steps (like adding to cart or finding a store). For example, Ulta Beauty’s AR lens led users directly to product pages, merging fun interaction with conversion.
  
  
• Leverage Data and Start Small: Begin AR initiatives with clear KPIs in mind (engagement time, conversion rate lift, foot traffic increase, etc.) and measure the results. Use A/B tests where possible. For instance, show half of the users the AR feature and half the standard experience to quantify the impact on sales or dwell time. Early data can help build the internal business case for scaling AR. If you’re new to AR, start with a pilot project on a single product line or a seasonal campaign to learn what resonates with your audience. The investment in 3D models or AR development for one project can often be repurposed across channels (e.g., the same 3D model for an AR try-on can be used in WebAR on your site and in a Snapchat filter).
  
  
• Collaborate with AR Platforms and Experts: There’s a growing ecosystem of AR solution providers, from AR commerce platforms (like Snap’s shopping lenses or Shopify’s 3D model pipeline) to creative agencies specializing in AR marketing. Partnering with experienced teams can accelerate your AR deployment and ensure technical quality. Platforms frequently share best practices – for example, Snapchat or Instagram reps can guide you on designing an AR filter that users will love and share. Similarly, consider leveraging no-code AR platforms (like BrandXR, ZapWorks, etc.) that allow your marketing team to create AR content without extensive development, speeding up time-to-market.
  
  
• Focus on Content Quality and Relevance: The novelty of AR is no longer enough; consumers will judge the experience like any other content. Invest in high-quality 3D assets and seamless AR interactions. Blurry or unrealistic AR will damage your brand’s reputation. Ensure the AR experience provides genuine value—whether it’s solving a problem (e.g., “Will this fit in my room?”), entertaining the user, or offering useful information. Always ask, “Would I find this AR experience cool or helpful?” If not, refine the concept. Additionally, design for accessibility—not everyone has the latest phone, so optimize AR for a variety of devices to reach a broader audience.
  
  
• Promote the AR Feature: “If you build it, they won’t necessarily come” – you must let consumers know AR is available and entice them to use it. Clearly label AR functionalities on your app or website (“View in AR” buttons, AR icons on product images). In stores, use signage or staff to inform shoppers about AR experiences (“See our window come alive with AR – scan this code”). Incorporate prompts in your marketing materials: emails, social posts, and ads can include short videos or GIFs of the AR in action to pique interest. When Burberry launched an AR shopping tool, they promoted it via social media demonstrating how to use it, which drove traffic. Educating users is essential, as some still aren’t aware of AR capabilities or how to access them.
  
  
• Cross-Pollinate AR and Social Media: Enhance AR campaigns by integrating them into social media challenges or influencer partnerships. When you launch a branded AR lens, collaborate with influencers to use it and share their experiences, motivating fans to follow suit. User-generated content from AR (selfies, videos) can be reshared (with permission) to create a promotional feedback loop. Keep an eye on social sentiment and feedback regarding AR features—comments can offer insight into what people loved or found confusing, aiding in future improvements.
  
  
• Ensure Seamless Omnichannel Transitions: AR should enhance omnichannel retail, not operate in isolation. If a customer tries a product in AR on their phone, allow them to save it and access it later on a desktop or in-store. Integrate AR try-on data with customer profiles (with consent)—for example, knowing which styles a user tried virtually could inform personalized recommendations later. Also consider linking AR experiences to loyalty programs (e.g., awarding points or a special reward for engaging with an AR experience, which can boost adoption). The goal is to make AR an interconnected part of your sales funnel.
  
  
• Stay Current but Pragmatic: AR technology and consumer behaviors are evolving rapidly. Monitor emerging AR trends – for instance, the growth of AR in wearables (smart glasses) or advancements in AR advertising networks. However, remain practical and user-centric. Embrace technologies that have matured enough to reliably serve your customers. Many companies are enthusiastic about the metaverse and the AR glasses on the horizon, but for 2025, the smartphone remains the AR device of choice for mass consumers. Concentrate on excelling there while planning for future platforms as they gain traction.
  
  
• Compliance and Permissions: Lastly, as you deploy AR, maintain respect for user privacy and comfort. Seek permission for AR features that use sensitive data (such as scanning a person’s room or facial geometry) and explain how it benefits the user. Be mindful of not overwhelming users or causing “AR fatigue” – quality over quantity is better. A few well-placed AR experiences in your customer journey can be more effective than dozens of mediocre ones.
  
  

By adopting these practices, Fortune 1000 marketing teams can leverage AR technology to create unforgettable shopping experiences and concrete business outcomes. Augmented reality has demonstrated its value in retail – now it’s about expanding these successes broadly and creatively. As we’ve observed, brands that lead the way in offering engaging AR experiences are enjoying significant benefits in customer engagement, brand perception, and revenue. In 2025 and beyond, incorporating AR is poised to become as essential to retail strategy as e-commerce or social media has been in previous years. Marketing leaders should view AR as a new canvas for innovation – one that adds digital depth to the real-world shopping experiences we’ve always known, captivating consumers in the process.

Conclusion

Augmented reality is no longer an experimental sideline for retail and e-commerce; it has become a central pillar of experiential commerce strategy in 2025. This research report highlights how AR technologies like storefront overlays, virtual try-ons, smart mirrors, WebAR, social filters, and interactive packaging are converging to redefine the shopping experience. The data points and case studies speak clearly: AR delivers measurable advantages, including higher conversion rates, larger baskets, increased foot traffic, and enhanced brand loyalty. Companies at the forefront of AR adoption – such as Amazon, IKEA, Gucci, and 19 Crimes – demonstrate that immersive tech can delight customers and drive growth at the same time.

For Fortune 1000 CMOs, VPs of Marketing, and agency leaders, the mandate is clear: embrace AR now, with an emphasis on strategic value. The competitive landscape is changing, encouraging consumers to gravitate toward retailers that provide the rich, informative, and enjoyable experiences that AR enables. In the U.S. market, characterized by its high development and fierce competitiveness, AR serves as a differentiator that aligns seamlessly with evolving consumer expectations for personalization and engagement.

The year 2025 is set to be a transformative moment as AR transitions from the realm of early adopters to a mainstream expectation in shopping. Retailers who effectively implement AR will not only capture the attention of today’s digitally native shoppers but also establish the infrastructure and expertise for more advanced platforms (like AR glasses) on the horizon. By investing in content, technology, and collaboration to introduce meaningful AR experiences, brands can create an innovation halo while also achieving core KPIs in marketing and sales.

In summary, augmented reality provides a new perspective for consumers to experience retail – one that adds depth, context, and confidence to every interaction. Retailers and e-commerce players that leverage this perspective stand to gain real-world benefits such as higher engagement, satisfaction, and revenue. As this report has demonstrated through evidence and examples, AR in retail is not science fiction; it’s here, now, delivering value. The question for industry leaders is no longer “Should we explore AR?” but “How can we best deploy AR to delight our customers and drive our growth?”. The brands that discover compelling answers to that question will lead the next era of retail innovation.