Shoptalk Spring 2026: Your holiday retail questions answered

The themes at Shoptalk Spring 2026 made the urgency clear. Holiday 2026 will reward preparation. The merchants best positioned for a strong season aren't doing everything differently; they're making a handful of smart decisions earlier than their competitors. 

Here's what matters before the code freeze and how to get ahead this holiday retail season.

Shoppers are increasingly starting their product research on AI tools rather than Google. Brands that don't surface in popular LLMs are losing customers before they ever arrive at a product page. 

Research cited at Shoptalk found that 72% of consumers say AI recommendations heavily influence their ultimate brand choice.¹ But there's a catch: 80% of those same consumers say they don't fully trust AI.² They worry about bad information, fake products, and manipulation. So 60% follow up AI recommendations by doing their own research: checking Reddit, watching YouTube, texting a friend, or asking a store associate.²

Your brand and product content need to surface accurately in AI results, and what consumers find when they go looking on their own needs to hold up.

With 68% of consumers already using AI answer engines for discovery, product page optimization is no longer optional.³ AI-optimized PDPs ensure merchant visibility, while on-page conversion tools (express checkout, payment widgets, exit intent, etc.) help convert high-intent shoppers once they arrive.

Search your brand (and direct competitors) in an AI tool today. What shows up is your North Star for product page optimization.

Consumer caution isn't a short-term blip. Research presented at Shoptalk found that 27% of consumers are actively cutting back, and 61% are making fewer shopping trips.² Brand loyalty is at historic lows, with shoppers switching brands more frequently than ever before.

The categories hit hardest:

Apparel (-70%)

Beauty (-35%)

Personal care (-38%)²

That said, 20–30% of shoppers are actively choosing to trade up, but only when the value is obvious.² Those cutting back aren't just being cautious. They're making a conscious decision that the brand didn't earn their dollar.

For merchants, the strategic response is twofold: 

1. Make the value clear

2. Make it easy to say yes

While making the value clear depends on the product in question, there’s a near universal way to make it easy to say yes.  Flexible payments have been shown to drive up to a 44% lift in conversion rates and a 27% increase in average order value.⁴ A shopper who might hesitate to purchase due to timing can say yes by spreading that cost over time. That single decision impacts conversion rates, average order value, and the likelihood of repeat purchases.

The retailers thriving in physical retail aren't just stocking shelves. They're prioritizing experiences and community to drive transactions and loyalty.

Target plans to run Saturday events at every one of its 2,000 stores.

Glossier removes mirrors from the sales floor to spark conversations between customers.

Tecovas gives 20% of floor space to an open bar and live music.

Experience is the differentiator. And the payment opportunity is increasingly in-store. Shoppers expect a seamless experience whether they're buying online, in-store, or in-app — and payment is one of the last remaining friction points in the physical retail journey.

Removing that friction shouldn't require a major implementation project. Zip's virtual card lets eligible shoppers use flexible payments anywhere Visa is accepted,⁵ with no changes to existing POS systems, no IT lift, and no disruption to your current tech stack. For teams already eyeing the holiday code freeze, that's one less thing to worry about.

Whether online, in-store, or in-app, BNPL works the same way for merchants: you're paid in full upfront, with Zip carrying the repayment risk. In fact, Zip’s repayment rate is greater than 98%⁶

For marketing leaders, the retention signal matters just as much: 96% of Zip customers transact again after their first purchase.⁷ In an environment where trust is hard to earn and brand loyalty is declining, that's an actionable number.

A true omnichannel payment experience means a shopper can browse online, buy in-store, and manage their purchase through an app—all within a single, consistent system. Yet 65% of retailers say their current tech can't deliver that.⁸ For marketing leaders, that's a customer experience problem. For finance and operations leaders, it's a reconciliation and reporting headache that compounds every quarter.

Zip is designed to work across every channel without adding complexity to your stack.

1. Optimize your content for AI visibility

If your product pages and brand content aren't surfacing accurately in AI tools, you're losing customers at the very top of the funnel.

2. Invest in the in-store experience

Decide how your brand shows up physically—not just what you stock, but what you do.

3. Remove friction at checkout

Online and in-store. Flexible payments give hesitant shoppers a reason to say yes without sacrificing merchant margin.

4. Choose payments partners that make things simple

With a code freeze looming, ask every new vendor: does this make things simpler, or does it add another layer to manage?

If you're thinking about how flexible payments can help remove friction at checkpoint and fit into your holiday strategy—driving conversion online, enabling a smoother in-store experience, or giving cautious shoppers a more manageable way to purchase—let's talk.

_{Loans through Zip are originated by WebBank. Eligibility criteria apply. Payment terms and fees vary by product and merchant. Testimonials and survey results reflect individual experiences and may not be representative of all users.}

_{¹Wingo, S. (2026, March 24). Debate: AI Agents Will - Will Not Transform Retail. [Conference Session]. Shoptalk Spring, Las Vegas, NV. https://spring.shoptalk.com/agendas/2026-agenda/debate-ai-agents-will-not-transform-reta}

_{²Lusk, C. (2026, March 25). Insights: New Research on Consumer Attitudes and Behaviors. [Conference Session]. Shoptalk Spring, Las Vegas, NV. https://spring.shoptalk.com/agendas/2026-agenda/insights-new-research-on-consumer}

_{³Adams, C., Allredge, K., & Kilroy, T. (2026, March 2). An update on US consumer sentiment: Embracing AI-supported shopping. McKinsey & Company. https://mckinsey.com/industries/consumer-packaged-goods/our-insights/the-state-of-the-us-consumer}

_{⁴Internal data analysis of transactions from July 2024 - March 2025}

_{⁵VISA is a trademark owned by Visa International Service Association and used under license. Zip can only be used for US purchases. Certain merchant, product, goods, and service restrictions apply.}

_{⁶1H FY26 results released to the ASX}

⁷_{Zip transaction data for 12 months ending in Dec 2024}

⁸_{commercetools. (2026). The unified commerce playbook for retail leaders. [White paper]. https://commercetools.com/resources/whitepaper/the-unified-commerce-playbook-for-retail-leaders}