Forrester Urges Retailers to Prioritize Retention and Content in 2027
Retail marketers should prepare for constrained budgets, cautious shoppers and fewer promotional levers in 2027, according to Forrester Research. The firm expects real U.S. retail sales growth to be near zero, with nominal gains likely falling short of inflation. In that environment, it advises retailers to put more emphasis on keeping customers, clarifying their value and producing useful content than on increasing ad spending.
Consumers are expected to remain under pressure from higher living costs and to become more price-conscious. Forrester reports that 65% of U.S. online adults are buying more private-label products than they were a year ago. The firm recommends that retailers strengthen retention efforts, including email and text marketing, and focus on activating their existing customer base rather than relying on a steady stream of promotions.
Compete on a distinct proposition
Forrester advises retailers to define a defensible value proposition in a narrower arena instead of trying to match large competitors across every feature. Amazon, Walmart and Costco are expected to have combined annual gross merchandise value of nearly $2 trillion in 2027, according to the firm. Forrester predicts that continued demand for low prices will help the three mass merchants gain share.
For other retailers, differentiation may come from distinctive products, services or merchandising. The strategic point is to give shoppers a reason to choose the brand beyond price and breadth of assortment. A retailer that tries to compete with the largest merchants feature for feature risks committing resources to an unwinnable contest, Forrester argues.
Value-seeking behavior may also support demand for secondhand goods. Forrester points to consumers’ growing concern about wasteful consumption, alongside agentic platforms’ ability to scale the product information needed to list individual items. One-quarter of U.S. online adults say they regularly buy secondhand goods, the firm reports, and it predicts eBay will double its growth as these forces develop.
Forrester recommends that retailers consider ways to extend product lifespans, such as branded resale marketplaces or repair services. Patagonia operates a resale platform, while Levi’s and LVMH offer product repair, according to the report. These approaches can provide another way to serve cost-conscious shoppers while building on existing products and customer relationships.
Agentic commerce brings opportunity and trust concerns
In its “Predictions 2027: Digital Commerce” report, Forrester forecasts that 5% of consumers in the U.S. and U.K. will leave traditional shopping journeys in favor of conversations with AI agents. Early adopters, including many Gen Z consumers, may shift commodity purchases to agents that seek favorable prices and timing. Retailers with substantial Gen Z or technology-adopter audiences should assess whether automated shopping and purchasing capabilities suit their customers.
Adoption is not assured. Forrester says 75% of U.S. and U.K. consumers are uncomfortable with AI agents making purchases, citing concerns about errors, data security and privacy. The firm also predicts that one in three commerce service providers will build an agentic commerce platform with protocols and safeguards for payments and security. Retailers evaluating vendors should consider whether their systems fit the business and can support consumer trust.
Forrester notes that agents face practical limitations in completing purchases when retailers do not provide real-time information about prices, inventory, loyalty programs and sales tax. The complexity was underscored when OpenAI discontinued ChatGPT’s Instant Checkout feature in March 2026. Forrester expects agentic chat platforms to shift from product discovery toward finding the best price, and predicts Google will acquire or integrate a deal-finding product, initially for commodity goods such as groceries.
Content may be a more defensible investment than answer-engine ads
A stronger emphasis on price comparison could intensify competition for commodity products. Forrester recommends that marketers in those categories look for product or packaging innovation rather than depend solely on price. The firm also advises brands to be cautious about buying ads within answer engines: neither the platforms nor many advertisers have established a clear return on investment, it says.
Instead, Forrester recommends investing in content, monitoring reputation beyond reviews on a brand’s own site, using social listening and refreshing material frequently. The firm reports that ChatGPT sends 30% of its referral traffic to just 10 sites, with Amazon the only commerce destination in that group. For marketing teams managing budgets and content operations, the recommendations point toward targeted material tailored to audiences and regularly updated to remain useful as shopping behavior changes.
