Retail Outlook 2026: Data, Loyalty and ESG Trends

The holiday season might be over, but that doesn’t mean the pressure to deliver is off retailers across Latin America. While the post-holiday period does provide an opportunity to reset, it’s not the time for business leaders to rest on their laurels or take their feet off the gas. 

Maintaining momentum and keeping up with changing trends as the calendar turns is a critical endeavor, helping retailers set the stage for success in the months ahead. 

Here’s how Latin American retailers have fared this holiday season, and what the results hint are in store for the coming year:

Brick-and-Mortar Still on Solid Ground

Across the region, preference for in-store purchasing remained strong. Last year marked an important milestone for omnichannel operations, with more than 52% of Latin American households using seven or more channels within the calendar year. However, data shows that this shift isn’t leading to dwindling store visits; rather, shoppers are adding additional channels without abandoning old ones. 

Retailers have an opportunity to capitalize on satisfying seasonal shopping experiences in 2026. Recent Sensormatic Solutions research shows that 77% of retailers who outperform their categories’ traffic averages during the holiday season continue that momentum in the first half of the following year. Retailers who continue to nurture relationships with satisfied holiday shoppers will find themselves better positioned to meet their goals in 2026. 

Sustainability Sells

Responsibly-sourced and environmentally friendly products were big sellers throughout the holiday season, especially with younger shoppers. Gen Z consumers, whose spending power is growing exponentially, continue to show allegiance to values rather than brands and are willing to branch out to support businesses that prioritize ethics, humor, and authenticity. This is likely to continue to impact retail strategies in the upcoming year, as retailers recognize that surface-level commitments to “sustainable” practices are no longer enough. 

Today’s consumers are no longer fooled by spin related to eco-friendly programs, they expect retailers to put their money where their mouths are and integrate responsible practices into larger environmental, social, and governance (ESG) initiatives. Paired with the region’s strengthened commitment to leading the fight for climate protection, this will usher in a new era of holistic sustainability practices.

With access to detailed operational data, retailers will be more prepared to answer the call than ever before. Many will find that this approach is not only more successful at mitigating impact but at protecting bottom lines, too. 

Loyalty Looks Different, and That’s a Good Thing

Recent Deloitte research found that shopper perception of “value” is changing fast, with 40% of surveyed consumers noting price is not the only factor they consider when comparing brands. The quality of a brand’s loyalty program and perks is quickly rising in importance as shoppers make these assessments. 

Holiday performance echoes these sentiments, and subscription loyalty programs proved to be a bright spot for many retailers. Subscriptions make revenue streams more reliable through recurring payments in exchange for valuable data about shopper behaviors that inform more successful retail media network (RMN) operations, loss prevention and merchandising. 

Brick-and-mortar-first who have not yet explored these models may benefit from doing so now, as the subscription options available to shoppers are poised to explode in the new year. Shoppers’ increasing desire to participate in these kinds of programs and the growing importance of RMNs as revenue drivers will lead to a market flooded with options. With the average consumer in Latin America already participating in two subscription loyalty programs, retailers that do not roll out similar options soon may lose their chance to reap the benefits.

Shrink Visibility Provides New Understanding

Though the holiday season provided the traffic and sales boom the region’s retailers wanted, the busy end-of-year season tends to be accompanied by an uptick in shrink and loss. However, there may be a silver lining for leaders as they reflect on the end of 2025. 

Data ecosystems designed to track and analyze theft captured much of this activity, shedding new light on how, when and where shrink happens in retail locations. This data — paired with general industry trends — can help loss prevention teams benchmark their shrink and loss performance relative to their peers to get a sense of what’s working and what’s not. 

Not only will this help strengthen practices and harden targets in the new year, but it will help contextualize the challenge at hand for each enterprise, enabling a more nuanced understanding of total retail losses and more precise controls. As the year continues, this insight will shift how retailers in the region and around the world think about total retail loss, opening doors for novel tools that address the issue at its roots.

Looking to the Year Ahead 

Holiday performance can provide valuable insight into the trends, preferences and patterns likely to guide the industry in the new year. Paired with larger economic and market pressures, this can provide a rich portrait of what’s coming, helping retailers to enter the new year on strong footing. 

While it might be tempting to step back after a busy holiday season, now’s not the time to stop moving forward. Keeping close to the data, an eye on emerging trends, and perspective around the challenges to come will help ensure that leaders are prepared to take advantage of the opportunities that 2026 will offer.