Omnichannel Retail Innovation through Augmented Reality: Enhancing Personalisation and Customer Satisfaction

Abstract

Digital commerce has evolved quickly, forcing organisations to become multi-channel and ensure a smooth transition between online and offline experiences. Augmented reality (AR) is one of the most important technologies emerging in the field of retailing that will help drive personalisation, immersive customer engagement, and customer satisfaction in an omnichannel retail setting. This article explores the impact of augmented reality in retail, focusing on the enhancement of customer experiences through interactive product visualisation, real-time customisation, and personalised shopping journeys across different retail channels. The paper examines the potential of AR to connect digital and physical retail spaces from the perspectives of omnichannel retail theory, experiential marketing frameworks, and technology acceptance. This study examines literature from the last seven years (2020-2026) to identify mechanisms through which AR can facilitate consumer trust, purchase confidence, decision efficiency, and long-term satisfaction. The results indicate that AR can greatly enhance the omnichannel performance by minimising purchase uncertainty, engaging customers, and providing a hyper-personalised retail experience. Moreover, AI-powered personalisation and predictive analytics further enhance the effectiveness of AR by optimising recommendations and consumer experiences. This study makes a contribution to the literature on retail innovation by positioning AR as a strategic asset that will be pivotal in next-generation omnichannel experiences. The practical implications highlight the need for retailers to combine AR technologies with personalisation strategies to remain competitive, boost customer loyalty, and maximise satisfaction in an increasingly technology-driven consumer market.