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LONDON (February 2026) – Global consulting firm, AlixPartners, today published new data from its 2026 Disruption Index, which surveys 320 retail CEOs and senior executives across 11 countries. The data reveals that retail is one of the top two most disrupted industries globally (the Index covers ten industries in total), with a Disruption Index score of 73, ranking just behind automotive at 74.
Within retail, 'sporting goods, hobbies and electronics' stand out as the most disrupted sub sector, scoring a Disruption Index score of 85 points. Other highly disrupted areas include 'home improvement and furnishing retailers' and 'wholesale retailers', which both score 79 points.
The Index identifies 'protectionism and tariffs' as the single largest disruptor (32%), closely followed by 'inflation or price increases' (31%) and 'geopolitical conflict' (30%). These factors have already triggered significant operational shifts, with 86% of retail leaders saying they have adjusted their supply chains to rely on different partners or vendors due to tariff changes or geopolitical instability.
There is near-universal agreement across the retail sector that meaningful change is essential. Only 8% of retailers expect little to no change to their business model in the next 12 months, underscoring a widespread recognition that traditional approaches are insufficient in today's environment.
Two thirds (66%) of retail executives identify AI and machine learning as the biggest opportunity for the industry. The strongest perceived areas for AI investment include:
- Supply chain operations or procurement (87%)
- Marketing, pricing, sales (86%)
- Operations and production (85%).
Commenting on these findings, Paul Martin, Global Retail Growth Leader at AlixPartners, commented:
"Retail's status quo is no longer sustainable. With sales volumes plateauing, the pressure on retailers to deliver like for like growth is intensifying and leading the industry into a new phase of reinvention.
"Our data shows that retailers now view AI and automation as the sector's biggest opportunity, capable of unlocking unprecedented precision, optimisation opportunities and speed. Yet the widening gap between long term technological ambition and near term profitability underscores how exposed the industry remains.
"In a market defined by volatile supply chains, shifting consumer expectations, rapid innovation and reduced consumer spending, retailers are under real pressure to keep innovating while protecting already thin margins. Those who crack that balance will define the next decade of retail."
