Quick Buzz Feed
Retailers are significantly increasing their investments in technology and artificial intelligence, alongside expanding omnichannel services, to meet evolving consumer expectations, according to the latest Levin Management Corp. mid-year survey. This strategic focus aims to enhance customer experience and operational efficiency amidst a dynamic market.
The Levin Management Corp. (LMC) 2026 Mid-Year Retail Sentiment Survey highlights a robust and sustained commitment to technology adoption within the retail sector. A substantial 47.8% of surveyed store managers and business operators reported making new technology investments this year. This figure represents a continuation of an upward trajectory observed over the past three years, with 38% reporting investments in 2024 and 44% in 2025. This consistent growth underscores retailers' strategic imperative to leverage technological advancements for competitive advantage and to better cater to the rapidly changing demands of modern consumers.
Artificial intelligence is rapidly transitioning from a nascent concept to a practical, integral tool across various retail operations. The survey reveals that a significant two-thirds (66.4%) of retailers are either actively using, testing, or exploring AI within their businesses. Notably, over one-quarter (25.6%) of these retailers are already actively implementing AI solutions, indicating a maturing phase of AI integration. The applications of AI are diverse, with marketing and content creation leading the way at 53.2%, followed closely by data analysis and reporting at 49.4%. Other key areas include customer service and chatbots (41.8%) and inventory forecasting (27.8%), showcasing how AI is being strategically deployed to improve efficiency, personalize customer interactions, and enhance decision-making processes across the retail value chain.
Retailers are actively expanding and diversifying their omnichannel fulfillment capabilities to provide greater convenience and choice for customers. "Buy Online, Pick Up In-Store" (BOPIS) remains the most popular option, offered by 50.3% of respondents. Curbside pickup experienced the most significant year-over-year increase, growing substantially from 22.2% in 2025 to 37.8% in 2026. Local delivery services also saw a notable rise, from 32.5% to 39.9%. This expansion of fulfillment channels reflects a proactive response by retailers to evolving consumer shopping habits, ensuring a seamless and flexible purchasing experience, whether online or in-store.
The survey indicates a stable, albeit not explosively growing, retail landscape. Approximately 61.6% of retailers reported year-to-date sales that were either consistent with or higher than the previous year, a positive sign of market stability. Similarly, 63.9% experienced stable or increased customer traffic. Retailers pinpointed customer traffic (29.9%) and customer spending (23.4%) as the primary determinants of their sales performance. Despite this stability, significant operational challenges persist, primarily concerning cost pressures. Cost of goods and supply chain expenses were cited by 46.9% of retailers as a major concern, while labor and staffing costs were a top challenge for 45.5%, indicating a complex operational environment where efficiency gains are paramount.
Looking forward, retailers generally maintain a positive and optimistic outlook for the second half of 2026, with more than 71% expecting sales to remain stable or improve. This forward-looking sentiment is largely contingent upon broader economic indicators, particularly consumer confidence and overall economic conditions. The collective findings of the LMC survey paint a picture of a resilient retail industry that is strategically adapting to market shifts by prioritizing and implementing technological innovations, integrating AI, and enhancing customer convenience, all while maintaining a crucial focus on optimizing the physical in-store shopping experience.