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AR in retailing
Augmented reality in retailing: a
review of features, applications
and value
Federica Caboni 1125
Department of Economic and Business Science,
Received 6 December 2018
Universita degli Studi di Cagliari, Cagliari, Italy, and Revised 10 December 2018
Johan Hagberg 4 April 2019
6 June 2019
Department of Business Administration, Accepted 2 July 2019
University of Gothenburg, Gothenburg, Sweden

Abstract
Purpose – The purpose of this paper is to review augmented reality (AR) within retailing by identifying,
outlining and discussing definitions of AR, applications of AR that are relevant for retailers, and the value AR
provides for retailers and consumers.
Design/methodology/approach – The paper is based on a review of AR research within the business-
oriented literature and an overview of current AR applications within retailing.
Findings – Based on previous literature, the paper presents a synthesised definition of AR, its main elements
and how it differs from virtual reality. Furthermore, it reviews and provides examples of three major types of
AR applications in retailing: online web based, in-store and mobile app based. Finally, the paper identifies the
specific value that AR applications may provide for consumers and retailers.
Originality/value – The paper contributes an overview of a relatively recent but rapidly emerging theme
that has not yet been sufficiently reviewed. It outlines areas for further research and thus provides value for
both researchers and retail practitioners.
Keywords Retailing, Augmented reality, Literature review
Paper type Literature review

Introduction
Retail is an integral part of society. Today, technological changes and the widespread use of
digital technologies are transforming retailing and the shopping experience (Spears, 2014;
Hagberg et al., 2016) and are helping to keep retail stores alive (Berman, 2019). Interactive
technologies (Huang, 2019; Javornik, 2016a, b; Poushneh, 2018) and the increased use of the
internet and e-commerce (Barlow et al., 2004) have garnered attention from consumers and
retailers (Pantano and Laria, 2012) in the past few decades. These technologies have
significant implications for traditional forms of retail (Hagberg et al., 2017) and are
modifying the way consumers engage in the shopping process (Yadav and Pavlou, 2014).
Through high connectivity and interactivity (Huang, 2019; Berman, 2019; Yim and Park,
2019), these technologies can enhance the shopping experience ( Javornik, 2016a, b;
Poushneh, 2018) and store atmospherics by helping to create a buying context that increases
consumers’ willingness to buy (Poncin and Mimoun, 2014). Thus, the point of sale becomes a
new immersive place where digital technologies merge with traditional elements and
provide a highly personalised and interactive environment (Berman, 2019; Pantano et al.,
2018; Pantano and Laria, 2012; Pantano and Servidio, 2012; Pantano and Timmermans,
2014). Consumers can interact more profoundly with products. On the other hand, by
improving the in-store shopping experience, retailers can have a positive impression on
International Journal of Retail &
consumers and attract new categories of consumers. Distribution Management
Augmented reality (AR) is one of several digital technologies that could be considered Vol. 47 No. 11, 2019
pp. 1125-1140
useful in developing the new concept of retail stores where traditional and digital store © Emerald Publishing Limited
0959-0552
elements co-exist. Along with other interactive technologies, such as virtual reality (VR) and DOI 10.1108/IJRDM-12-2018-0263
IJRDM mixed reality, AR is shaping a new environment (space) where physical and augmented/
47,11 virtual objects/elements are integrated in different ways (Flavián et al., 2019).
Retailing is considered one of the sectors with the greatest possibilities to implement AR
(Cruz et al., 2018). As highlighted by Javornik (2016a, b), the AR industry is estimated to
reach $56.8bn globally by 2020, and in the retail market, it is expected to reach almost
$7.9bn globally by 2023 (MarketsandMarkets, 2018)[1]. These global data support the
1126 positive expectations of the future of this technology. AR has the potential to modify the
shopping experience (Watson et al., 2018). Increases in online shopping (Barlow et al., 2004),
smartphone use and the adoption of connected devices are major factors driving the growth
of AR in retail markets by encouraging retailers to adopt AR. Thus, retailers are
increasingly embracing AR applications as a tool for creating immersive customer
experiences (Flavián et al., 2019; Watson et al., 2018).
In the last few years, academics and practitioners have focussed on several possible
ways that the shopping experience can be enhanced and store environments can become
more attractive for consumers (Pantano, 2010). It is important to understand the role of
digital technologies, particularly AR, within the point of sale as an emerging opportunity for
physical stores that will contribute to defining the future of retailing (Grewal et al., 2017).
The early studies on AR were primarily conducted in the computer science and
engineering areas to define the main technological characteristics of AR (Azuma, 1997; Azuma
et al., 2001). However, over time, scholars’ attention has also turned to the retail sector, and we
are currently witnessing a growing number of studies within business in general and retailing
in particular (Kang, 2014; Jaekel, 2016; Yim et al., 2017; Pantano et al., 2017; Pantano and
Gandini, 2017, 2018; Scholz and Duffy, 2018). There is a need for a review of this emerging
literature. Thus, the purpose of this paper is to review AR in retailing within business-oriented
research. The paper addresses the following three research questions:
RQ1. What are the main features of AR?
RQ2. What AR applications are relevant for retailers?
RQ3. What kind of value may AR provide for consumers and retailers?
The paper is organised as follows. The next section will describe the method of the literature
review. This will be followed by three sections discussing previous research in relation to
each of the research questions focussing first on definitions of AR, second on applications of
AR in retail settings and third on AR’s value for retailers and consumers. Finally,
concluding observations will be provided, and opportunities for further research and
implications for scholars and practitioners will be identified.

Method and materials

The literature review was conducted in four steps: literature search, screening and initial
assessment, review and analysis of the literature and writing up and reporting of the results.
The first and second steps were conducted between November 2017 and December 2018
through an iterative process that included business/retail-oriented studies from 2001 to
2018. In the first step, literature in the Scopus database was searched. The use of the Scopus
database is justified by its indexing approximately 70 per cent more sources than other
databases, such as Web of Science (Brzezinski, 2015). This ensured more coverage of the
literature analysed (Harzing and Alakangas, 2016). The literature search was limited to
published articles and scientific book chapters edited in English within academic journals
(Green and Hall, 1984). The reason behind this choice is connected to the quality resulting
from the peer review process offered by academic journals and scientific books, whereas the
quality of books, conference papers and non-academic material is less ensured (Lucarelli
and Berg, 2011).
 The literature search was conducted by using the keyword “augmented reality” AR in retailing
combined with the disciplinary area of business management. This was followed by a
search for the keyword “augmented reality” combined with the keyword “retail*” to include
papers and book chapters that were within other disciplinary areas but related to the
empirical field of retailing in some way.
A second step consisted of a screening and initial assessment of the literature, which was
conducted by reading the abstracts and assessing their relevance for the topic at hand. This 1127
process was guided by the three research questions.
The third step consisted of a review of all selected papers and an analysis based on the
three research questions:
RQ1. What are the main features of AR?
RQ2. What AR applications are relevant for retailers?
RQ3. What kind of value may AR provide for consumers and retailers?
The review and analysis were conducted by using a table in which the papers were in the
rows, the three research questions were in the columns, and relevant information from each
paper was included in the matrix. After the table was filled in, analyses were conducted by
categorising the results based on different themes and topics that emerged from the
literature in relation to each research question. Additional relevant literature identified
through the reviewed papers was also included (e.g. Sutherland, 1968; Milgram et al., 1994;
Drascic and Milgram, 1996; Azuma, 1997; Caudell and Mizell, 1992). To complement the
material on practical applications found in the research papers, another review was
conducted. This review was performed considering industry reports (e.g. Goldman Sachs,
2016; Ericsson Consumerlab, 2017; MarketsandMarkets, 2018), company websites and
newspaper articles to identify the major types of AR applications and specific examples
from retail companies. This review was based on examples that we came across in our
monitoring of different examples through such sources. Thus, considering that AR
applications are continuously introduced within retailing, the intention of this review of
examples is not to be terminal or exhaustive but rather to illustrate the variety of
applications currently present in retailing.
The fourth step consisted of compiling and writing up the results of the review. The
findings are presented based on the three research questions to provide structure and clarity
for the reader. The three findings sections present and discuss the literature and are
followed by a concluding discussion.

What are the main features of AR?

Origin and development
The term AR dates back in the literature to the 1940s, but the term only became widespread in
the 1980s, when engineer Thomas Caudell used it to describe a new technology useful for
assembling and installing electronic cables in aeroplanes (Caudell and Mizell, 1992). The first
applications of this technology were applied in the military, industrial and medical sectors
(Hwangbo et al., 2017). In particular, in a brief historical excursus, the first AR system
appeared in the 1950s, a product of Morton Heilig. In 1962, this cinematographer created and
patented a simulator called Sensorama, with visuals, sounds, vibrations and smells. Then, in
1968, Ivan Sutherland created an AR system using an optical see-through head mounted
display (Daponte et al., 2014). In the mid-1970s, Myron Krueger introduced the interaction
between a user and a virtual object (Levin, 2006). Following these events, Caudell and Mizell
(1992) coined the term AR in relation to the development of an AR system that helped workers
assemble wires and cables for an aircraft. With AR, users could have an experience in which
real and virtual elements coexisted in the same place. Thus, AR combines the real and virtual
IJRDM by permitting an interaction in real time and displaying elements in three dimensions (3D)
47,11 (Azuma, 1997; Azuma et al., 2001; Reinwald et al., 2014). Integrating real-world and virtual
elements enhances a specific reality (Poushneh and Vasquez-Parraga, 2017) and, in a store
environment increases the customer experience (Flavián et al., 2019).
In the new millennium, the growth of AR has been rapid thanks to several applications
inside mobile devices (e.g. smartphones, tablets and glasses) with sensors. Additionally, the
1128 number of fields of application has been growing rapidly. If AR was originally developed for
military, industrial and medical applications, its use later expanded into other areas such as
commerce, retailing and games (Hwangbo et al., 2017). AR developers’ increasing attention
to users’ needs and desires has also increased the quality of AR applications (Poushneh and
Vasquez-Parraga, 2017). An important goal regarding the evolution of AR applications has
been to define and create platforms that are able to merge both physical and virtual worlds
into one and to permit users to overlay and interact with virtual objects in their real-life
contexts (Ramadan and Farah, 2017; Carmignani and Furht, 2011).

Definitions of AR
Azuma (1997) proposed the first definition of AR by identifying the three main elements that
characterise it: the combination of real and virtual elements, real-time interaction and the
reproduction of content/elements in 3D. Building on Azuma’ definition of AR and its three
features, over time, several other authors attempted to define AR. The main contributions
from the business management area are displayed in Table I to identify the main features
underlined by these authors.
The above definitions are all linked by the same features identified by Azuma (1997).
Some of these definitions emphasise the technoogical aspects of AR, such as those by
Carmignani and Furht (2011), Sood (2012), Ukwuani and Bashir (2017), Olsson et al. (2013),
Hwanlgbo et al. (2017), Pantano et al. (2017), Lee and Leonas (2018) and Watson et al. (2018).
Several authors emphasise the enhancement of the user experience, such as Scholz and
Smith (2016), Javornik (2016a, b), Grewal et al. (2017), Poushneh and Vasquez-Parraga (2017),
Rese et al. (2017), Yim et al. (2017), Brengman et al. (2018), Poushneh (2018) and Watson et al.
(2018). Overall, these definitions convey that the natural environment is the main feature of
AR, which, in combination with sensory digital/virtual contents (e.g. information, video,
graphics and images), generates an augmented real environment (ARE). An ARE could be
defined as a new interactive and smart place where people can enhance their relationships,
interactions and living through an augmented experience (AE). An AE is the main result of
the application of AR during the shopping process in retail settings.
Combining this plethora of definitions and the main features identified in Table I, our
definition of AR is as follows: AR is technology-enabled augmented content that combines
with the real environment to develop an ARE where people can have an AE.
Based on these definitions, to identify the components of AR, three main elements are
considered in, as shown in Table II.

AR vs VR
The use of AR is principally based on the reproduction of 3D images of virtual objects. It is
similar to VR, but it is important to underline their main differences. AR is principally
characterised by the superposition of virtual elements generated by a computer on users’
real and physical environment (Cho and Schwarz, 2010; Drascic and Milgram, 1996), but
even if the purposes of AR and VR are similar (i.e. to enhance the consumer experience), they
address these aims in different ways. AR consists of reproducing virtual objects in the real
environment, while in VR, the reproduction of the object is developed by devices that users
have to wear, such as smart glasses (Milgram et al., 1994). More specifically, VR is defined as
a realistic 3D environment developed by a computer (Burdea and Coiffet, 2003) and
Authors Definition of AR Prevalent elements
AR in retailing
Carmignani and AR is defined as a real-time direct or indirect view of a Real time
Furht (2011) physical environment that has been augmented by adding Physical environment
virtual computer-generated information Virtual information
Sood (2012) AR converges the physical world with virtual objects, Physical world
augmenting the view of the physical world with streams of Virtual objects
information from the Web 1129
Ukwuani and Bashir AR is aimed at improving and enhancing the way we perceive Enhanced surroundings
(2017) our surroundings by combining technologies such as Combined technology
computing, sensing and display technologies
Olsson et al. (2013) AR is a technique that combines real and computer-generated Combination of real and
digital information into the user’s view of the physical real digital information
world in such a way that they appear as one environment Physical world
Real world
Scholz and Smith AR seems to be an ideal technology for forging deeper Ideal technology
(2016) relationships, as it fuses and entangles branded content with Forging relationships
consumers’ own environments and bodies
Javornik (2016a, b) AR is an interactive technology that modifies physical Interactive technology
surroundings with superimposed virtual elements. The user Physical surroundings
can add textual information, images, videos or other virtual Virtual elements
items to the person’s viewing of the physical environment
Grewal et al. (2017) AR is one of the emerging applications that will define the Emerging application
future of retailing Future of retailing
Hwangbo et al. (2017) AR refers to the computer graphic technology that visualizes Computer graphic
things that exist in the natural environment by combining technology
computer-generated sensory inputs such as sound, video, Natural environment
graphics, or GPS data from the physical, real world Sensory input
environment
Pantano et al. (2017) AR is a real-time view of the physical world augmented with Real time view of the
virtual computer-generated information physical world
Virtual information
Poushneh and AR is a series of technologies that integrate real world and Real world
Vasquez-Parraga virtual information, enhancing a specific reality Virtual information
(2017)
Rese et al. (2017) AR integrates computer-generated objects with the real Real environment
environment and allows real-time interactions Real time interactions
Yim et al. (2017) AR is defined as the superposition of virtual objects on the Virtual objects
real environment of the user Real environment
Brengman et al. AR allows for the digital overlay of content to the user’s real Digital content
(2018) environment Real environment
Lee and Leonas It brings virtual and artificial objects into a real environment Virtual and artificial
(2018) objects
Real environment
Poushneh (2018) AR is an interactive technology that generates three-dimensional Interactive technology
virtual content and then maps it onto the user’s reality Virtual content
Watson et al. (2018) AR layers virtual elements over physical environments, and Virtual elements
blends virtual worlds with reality. AR is a system to have Physical environment
these properties: combines real and virtual objects in a real Interactivity
environment; runs interactively and in real time; registers Real time
(aligns) real and virtual objects with each other Table I.
Source: Authors’ data elaboration Definitions of AR

composed only of virtual elements (Milgram et al., 1994). The main differences and
similarities between AR and VR are underlined in Table III, where similarities are indicated
with the letter S and differences with the letter D.
Considering the differences between AR and VR, the positive effects generated by AR are
more appropriate for brick-and-mortar stores because through AR, consumers have the
IJRDM Elements of AR Description
47,11
Technology Augmented content This component is constituted by technology-enabled content
(AC) reproduced in three-dimension (3D) such as pictures, objects, video,
information, text
Context Augmented real This component is related to the real environment where users are
environment (ARE) immersed and in which the content is integrated
1130 User Augmented experience This component is related to the possibility of enabling users to enrich
experience (AE) their experience by interacting with a virtual element in real time and
Table II. physical space by enhancing their perception
Elements of AR Source: Authors’ data elaboration

Elements of AR Differences and similarities AR VR

Technology Reproduction in 3D D Objects Environment

Superposition D Virtual elements in real Virtual element in virtual
environment environment
Need for electronic tool D No need to see Yes need to see
Computer based S Yes Yes
Context Kind of reality D Natural reality Synthetic reality
User Goal S To enhance consumer To enhance consumer
Table III. experience experience experience
AR vs VR Source: Authors’ data elaboration

opportunity, for example, to test several products/clothes without physically trying them
(Verhagen et al., 2014; Yim et al., 2017). In this context, AR is more realistic than VR for
different reasons. AR permits the overlap of virtual elements in the real and physical worlds in
which a user is immersed (Hwangbo et al., 2017), whereas with VR, the user is completely
immersed in a virtual world with virtual objects. In this way, VR presents a stark difference to
AR because in VR, a synthetic reality is generated by a computer (Pantano et al., 2017; Burdea
and Coiffet, 2003) and is composed only of virtual objects (Milgram et al., 1994). However, it is
interesting to note that techniques used to develop AR applications come from techniques
used in developing VR (Rese et al., 2017; Azuma, 1997). Moreover, AR is considered similar to
VR in supporting the goal of enriching users’ experience (Yim et al., 2017).

What AR applications are relevant for retailers?

In the last few years, a high number of retailers (principally in the beauty and apparel
sectors) have introduced different kinds of AR applications in order to enhance the customer
shopping experience (Flavián et al., 2019). Through an analysis based on company reports,
company website information and documents elaborated by a consulting research company
(e.g. Goldman Sachs, 2016; Ericsson Consumerlab, 2017; MarketsandMarkets, 2018), three
major AR applications used by companies were identified: online web based, in-store and
mobile app, as shown in Table IV. These examples are more permanent features of AR
applications and primarily concern beauty and apparel sectors but also other retail sector
like toys (LEGO), furniture (IKEA and Wayfair), interior decoration (Dulux) and grocery
retailing (Yihaodian and Coop Italia).

Online web-based applications

Online web-based applications permit customers to have an immersive shopping
experience while comfortably seated in front of their computer. Via webcam, this kind of
Type of application Brand Short description
AR in retailing
Online web based Benefit Cosmetics Brow Try-on
CoverGirl Try it: Virtual Makeover Tool
DeBeers Forvermark Fitting
Estee Lauder Facebook Messenger Chatbox
Ray-Ban Ray-Ban Virtual Mirror
Yihaodian Virtual Store 1131
In-store Adidas Smart Fitting Room
Burberry AR Mirror
Burberry Beauty Burberry Beauty Box
Coop Italia Augmented Label
GAP Smart Fitting room
Lego AR Kiosk
L’Oréal AR Mirror
Mac Cosmetics Virtual Mirror
Nike AR Display
Rebecca Minkoff AR Mirror
Sephora AR Mirror
Shiseido Makeup Mirror “TeleBeauty”
Topshop AR Fitting Room
Uniqlo Smart AR Mirror
Zara AR Dispaly
Mobile app BMW BMW i Visualiser
Converse The Sampler
Dulux Dulux Visualizer
IKEA IKEA Place
L’Oreal L’Oréal ModiFace
Lego Lego AR Studio
Rimmel Rimmel Get the Look
Sephora Sephora Virtual Artist
Swarovski AR Smartphone Filters Table IV.
Wayfair Wayfair Reality App Types of AR
Zara Zara AR Studio Collection applications and
Source: Authors’ data elaboration based on industry reports, company websites and newspaper articles examples

AR scans and tracks customers’ bodies and movements to allow customers to try on
various virtual clothes as they would in a real fitting room (Kang, 2014). The computer
screen becomes an AR mirror through which customers can immediately see how clothes
look in real time and adjust the size and colour of clothing items just by using hand
gestures. AR permits consumers to better visualise their appearance (Berman, 2019). For
example, the Ray-Ban Virtual Mirror is one of the first online web-based AR applications
developed in the retail setting, and it is accessible through the company’s’ international
website. Potential customers can try on several kinds of sunglasses and find the most
suitable ones for their face (Pantano et al., 2017). Thanks to the computer camera, which
becomes a virtual mirror, several beauty companies (e.g. Benefit Cosmetics, CoverGirl,
Estee Lauder) offer their customers a new makeup experience, enabling customers to
become almost like real makeup artists.

In-store applications
Recently, retailers have been increasingly interested in using various AR applications in the
shopping process to bring life to the point of sale by personalising the in-store experience
through AR (Berman, 2019). Sometimes a monitor and video could be sufficient to engage
people and enhance the shopping experience in a more digitalised retail store.
IJRDM AR in-store applications are based on projection-based AR interfaces that are able to offer
47,11 consumers an enhanced and more immersive and interactive experience (Huang, 2019; Yim and
Park, 2019). Several big companies, such as L’Oréal and Sephora, have introduced AR mirrors
in their stores to enable customers to experience virtual facial makeup (Berman, 2019; Yim
et al., 2017; Jaekel, 2016). Other companies, such as Nike and Adidas, have used AR applications
to enrich the experience of their customers during the shopping process (Yim et al., 2017).
1132 Several AR in-store applications are principally based on a dressing room, which allows
users to try on clothes virtually in front of an “augmented mirror” by reducing the time in
which a user has to decide whether the clothing fits. In this way, customers are able to try on
more clothes in less time (Erra and Colonnese, 2015). Furthermore, virtual mirrors allow
customers to take a picture of their clothes from any angle and compare them with other
clothes or share their impressions with other people through the social application (Berman,
2019; Pantano and Gandini, 2017, 2018) installed inside the virtual mirror. These
applications give customers a new and interactive way to try on clothes without removing
any items they are wearing. The applications also enable customers to create outfits by
mixing and matching a broad range of clothing from retailers’ inventory (Kim et al., 2017;
Poushneh, 2018; Fretwell, 2011) and enhance users’ perception of the real world in real time
(Lee and Leonas, 2018; Yuen et al., 2013; Yaoyuneyong et al., 2014). This type of in-store
application also allows customers to check the size and colour of the clothes they are
wearing before purchasing (Hwangbo et al., 2017). In this way, customers can obtain
information about their body shape in relation to the clothes they want to buy. This AR in-
store application has the power to offer many of the same benefits that only traditional
retailing provided in the past (Lee and Leonas, 2018).

Mobile applications
Mobile augmented reality (MAR) applications are a relatively recent phenomenon in the
research literature but are increasingly common applications within retailing (Scholz and
Duffy, 2018). Through a handheld device (e.g. smartphone, camera and tablet), MAR
applications permit users to explore the surrounding area (Dacko, 2017). Leading
companies, such as IKEA, Wayfair and Sephora, have introduced specific mobile AR apps
to permit consumers to try products on their bodies or in specific spaces in the home or
elsewhere (Scholz and Duffy, 2018). By using a smartphone camera, users can integrate
physical and augmented elements, interact with digital content and find and evaluate
products in novel ways.
One of the most significant applications developed in recent years is the IKEA mobile
app that permits users to see a specific room (e.g. living room, kitchen and bedroom) and to
add virtual content from IKEA. Users can then evaluate the content relative to where in the
home it is expected to be placed (Lee and Leonas, 2018; Rese et al., 2014). Other companies,
such as Ray-Ban and Sephora (Scholz and Duffy, 2018), have introduced self-augmentation
applications to increase user interaction with the brand and increase customer satisfaction
through more information, interaction and utility (Poushneh and Vasquez-Parraga, 2017).

What kind of value may AR provide for consumers and retailers?

AR can contribute to enriching the retail setting both online and in and physical stores by
generating different value for consumers and retailers (e.g. Pantano et al., 2017; Scholz and
Duffy, 2018).

Value for consumers

AR enables consumers and potential users to interact with products and touch them in an
augmented way (Brengman et al., 2018) by increasing product tangibility (Vonkeman et al., 2017)
and purchase confidence (Pantano, 2014, 2016). AR helps customers see how products fit them AR in retailing
personally (Rese et al., 2014; Lu and Smith, 2007; Olsson et al., 2013) by adding different degrees
of information (e.g. digital and interactive images, videos). When they touch an object,
customers’ intention to buy the object increases, as do their willingness to pay a higher price and
their general willingness to buy. Customers’ interaction and full immersion in the retail context
is facilitated by more information (Yaoyuneyong et al., 2014). Examples range from information
on product assembly, product content and how the product works to more general 1133
entertainment elements. AR enables customers to become co-designers of what they want to
buy. Through AE, it is possible to create a deeper level of customer satisfaction and engagement
( Javornik, 2016a, b) and modify customer decision making. AR creates a “space of fantasy”, as
highlighted by Scholz and Duffy (2018), where customers interact with others. The shopping
experience becomes more intuitive and sensitive when customer satisfaction is enhanced
(Dacko, 2017). AR applications offer more dynamic 3D animation during the online shopping
process compared to traditional e-commerce (Pantano et al., 2017; Li et al., 2013; Lee and Park,
2014). Overall, several benefits and types of value for consumers can be achieved through AR in
the retail environment, as highlighted in Table V.

Value for retailers

Meanwhile, AR gives retailers possibilities to achieve several goals in their advertising and
marketing strategy and to stimulate customers to come to their shopping space (online and/or
offline), increase brand awareness and customer loyalty, and create an AE in an immersive
experiential environment. In particular, AR applications enable retailers to reshape or redesign
retail space by promoting a different mode of customer perceptions and sense making and by
using several elements related to the five senses. Retailers can use AR to provide customers
with virtual try-on opportunities to help them find the most suitable products for their needs
(Brengman et al., 2018). AR has become an excellent opportunity for promoting retail stores
and increasing customer attendance. Its advantages for retailers are related to increased speed
for obtaining information about consumer behaviour and consequently improvement in
service at the point of sale with positive influences on the consumer shopping experience
(Flavián et al., 2019; Dacko, 2017; Pantano and Naccarato, 2010). Through AR, retailers have
possibilities to increase sales volumes with mobile, web-based and in-store applications by
offering a personalised pre-purchase evaluation (Dacko, 2017). As underlined by Scholz and
Smith (2016), AR is important for retailers as a means of generating a memorable customer
experience and creating consumer engagement (Bonetti et al., 2018). Table VI shows the main
benefits retailers can obtain from using AR in their retail strategy.

Concluding discussion
The purpose of this paper was to conduct a review of AR in retailing within
business-oriented research. It has reviewed and discussed the features of AR through

Values for consumer

Interaction More interaction with products and brand

Experience Augmented shopping experience, intuitive and sensitive
Engagement Involvement in creating personal products
Information Get more kind of information regarding products, instruction for use
and about companies
Entertainment and creativity Create personal products or personalise them Table V.
Satisfaction High level of satisfaction AR value for
Source: Authors’ data elaborations consumers
IJRDM Value for retailers
47,11
Advertising Creative and interactive advertising
Experience Experiential environment
Attracting Customers online and offline
Sales Increase sale volume
Environment (online and offline) Smart and easy to use
1134 Brand awareness and customer loyalty Increase BA and CL
Table VI. Information Get more information regarding customers behaviour
AR value for retailers Source: Authors’ data elaborations

analysing its origins and development, definitions and elements as well as how it differs
from VR (Table VII). It has described and discussed different types of AR applications
relevant for retailers with specific examples in three major areas: online-based, in-store
and mobile apps (Table VII). It has also described and discussed the value of AR for
consumers and retailers (Table VII).
From this review, it is clear that AR may provide retailers with several opportunities to
enhance the store experience for consumers and potential users to interact with products
and touch them in an augmented way (Brengman et al., 2018), to increase consumer
engagement ( Javornik, 2016a, b), to enhance product tangibility (Vonkeman et al., 2017) and
to increase willingness to buy. Thus, increased interest in AR in retailing among researchers
and practitioners is most likely to continue. However, AR is still in the budding stages for
retailers and business-oriented research, and there is a great scope for further development.

Research limitations and future research

While this paper contributes an overview of a relatively recent but rapidly emerging theme
that has so far not been sufficiently reviewed, the limitations should also be acknowledged. As
an overview, the paper does not provide an in-depth understanding of various aspects of AR
and its applications within retailing that empirical research would provide; the paper provides
more of a snapshot of AR’s present state rather than a thorough understanding of its
development over time or a more systematic literature review using quantitative methods.
However, despite these limitations, the paper raises important issues for future research. First,
based on our identified elements of AR, which consist of technology, context and the user
experience, it was found that given AR’s origin and initial development, much progress has
occurred in technological aspects among practitioners and in the research literature. Less is
known about user experiences and the contexts in which AR is used. These are fruitful arenas
to further explore empirically for retailers and consumer- and business-oriented retail
research. Specifically, we think that such research should address the implications of AR in
terms of its effects on retailing, its integration within retailing and the value it provides (cf.
Hagberg et al., 2017). Second, we think that further empirical research should combine in-
depth case studies of AR applications within retailing with cross-case analyses that are able to
compare different types of retailers and situations in order to understand the conditions under
which AR is more or less suited to the context of retailing and to what extent the potential
values of AR are also realized in practice. Third and finally, we believe that such comparisons
should be complemented with longitudinal studies that are able to provide insight into the
development of AR over time. Like any other technology-related phenomena in retailing, there
may be major differences over time depending on the maturity of the technology and its
usage, which among other things means that the value provided by such technologies are
different when they are introduced and if/when they become part of everyday life. Overall, we
believe that AR will call for and provide several opportunities for retailing research in the
AR Key points Relevant literatures
AR in retailing
Features Origin and Azuma (1997), Azuma et al. (2001), Carmignani and Furht (2011), Caudell and
development Mizell (1992), Daponte et al. (2014), Flavián et al. (2019), Levin (2006), Hwangbo
et al. (2017), Poushneh and Vasquez-Parraga (2017), Ramadan and Farah (2017)
and Reinwald et al. (2014)
Definitions Emphasis on technological Emphasis on user experience
and elements aspects 1135
Carmignani and Furht (2011), Brengman et al. (2018), Grewal et al. (2017),
Hwangbo et al. (2017), Lee and Javornik (2016a, b), Poushneh and
Leonas (2018), Olsson et al. Vasquez-Parraga (2017), Poushneh (2018),
(2013), Pantano et al. (2017), Sood Scholz and Smith (2016), Watson et al. (2018)
(2012), Ukwuani and Bashir and Yim et al. (2017)
(2017) and Watson et al. (2018)
Technology Context User experience
Azuma (1997), Poushneh and Scholz and Dacko (2017), Daponte
Vasquez-Parraga (2017), and Smith (2016) and et al. (2014), Rese et al.
Yim et al. (2017) Ukwuani and (2017) and Schmalstieg
Bashir (2017) and Hollerer (2016)
AR vs VR Azuma (1997), Burdea and Coiffet (2003), Cho and Schwarz (2010), Drascic and
Milgram (1996), Hwangbo et al. (2017), Milgram et al. (1994), Rese et al. (2017),
Verhagen et al. (2014) and Yim et al. (2017)
Applications Online based Berman (2019), Kang (2014), Li et al. (2015) and Pantano et al. (2017)
In-store Berman (2019), Chung et al. (2016), Erra and Colonnese (2015), Fretwell (2011),
Hwangbo et al. (2017), Huang (2019), Jaekel (2016), Kim et al. (2017), Lee and
Leonas (2018), Yuen et al. (2013), Pantano and Gandini (2017, 2018), Poushneh
(2018), Yaoyuneyong et al. (2014), Yim et al. (2017) and Yim and Park (2019)
Mobile app Cruz et al. (2018), Dacko (2017), Lee and Leonas (2018), Poushneh and Vasquez-
Parraga (2017), Rese et al. (2014, 2017), Scholz and Duffy (2018) and Yim et al. (2017)
Values For Brengman et al. (2018), Hilken et al. (2017), Javornik (2016a, b), Lee and Park
consumers (2014), Li et al. (2013), Lu and Smith (2007), Olsson et al. (2013), Pantano et al.
(2017), Pantano (2014, 2016), Rese et al. (2014), Scholz and Duffy (2018), Dacko
(2017), Vonkeman et al. (2017) and Yaoyuneyong et al. (2014) Table VII.
Summary of AR
For retailers Bonetti et al. (2018), Brengman et al. (2018), Dacko (2017), Flavián et al. (2019), features, applications,
Pantano and Naccarato (2010) and Scholz and Smith (2016) values and the
Source: Authors’ data elaborations relevant literature

coming years and will require different approaches and combinations of approaches including
qualitative and quantitative empirical studies as well as additional reviews that may
summarise and synthesise the results of these studies.

Practical implications
Several practical implications can be drawn from this review. First, one main feature that
distinguishes AR from VR is that it combines virtual and physical elements. Thus, AR is
particularly suitable for the ongoing hybridisation within retailing that is blurring the
digital and physical domains rather than treating them as separate (Hagberg et al., 2016;
Grewal et al., 2017); thus, it constitutes an opportunity for retailers in such an emerging
landscape. Second, AR may provide opportunities for multiple applications that could be
used and combined in different types of settings, including physical stores, consumers’
homes or other places in which consumers are on the move. Third, the review outlined a
variety of values that may be adjusted to specific situations suitable for different retailers.
Rather than a “one size fits all” solution, AR provide opportunities for a variety and
IJRDM multiplicity of applications of value and thus for many forms of differentiation in an
47,11 increasingly competitive retail landscape.

Note
1. MarketsandMarkets™ is a private research company that offers B2B research on 30,000 high-
growth emerging opportunities and threats that will impact 70 to 80 per cent of companies’
1136 revenues worldwide. The “Knowledgestore” platform developed by MarketsandMarkets™ is an
intelligence market research platform that connects over 200,000 markets, and it is useful for better
understanding issues such as market sizing and forecasts of niche markets.

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Further reading
Li, H., Daugherty, T. and Biocca, F. (2001), “Characteristics of virtual experience in electronic
commerce: a protocol analysis”, Journal of Interactive Marketing, Vol. 15 No. 3, pp. 13-30.

Corresponding author
Federica Caboni can be contacted at: [email protected]

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