It is absurd to imagine that 88% of the Fortune 500 companies that existed in 1955 have vanished. For instance, the Great Atlantic & Pacific Tea Company (A&P), once the largest grocery retailer in the United States, and F. W. Woolworth, a pioneer in department stores, have both disappeared, illustrating how even dominant enterprises can decline. Organisations must be more vigilant than ever in future-proofing their businesses and remaining innovative as corporate life expectancies decline.
Retailers face growing pressure to keep up with digitally adept consumers, particularly Millennials and Gen Z, who expect shopping to be interactive, immersive and personalised. Augmented Reality (AR) and Virtual Reality (VR) offer powerful ways to meet these demands. AR overlays digital information onto the real world, viewed in real-time through a device. AR enables concepts imagined in the digital realm to be integrated into the physical world; its primary objective is to achieve this fusion seamlessly. AR allows consumers to visualise products in their own environments, reducing uncertainty, boosting satisfaction and lowering return rates. Simultaneously, VR can simulate fully immersive store experiences from anywhere in the world. Brands such as IKEA, Sephora, Nike and Lensmart just to name a few, are already deploying these technologies to bridge the gap between digital and physical shopping. Yet in South Africa, socio-economic challenges such as unequal smartphone penetration, high data costs and infrastructure limitations continue to restrict adoption. Despite this, potential remains significant as the AR market alone is expected to grow from $99.2m in 2024 to $154.2m by 2029, while smartphone adoption is projected to climb steadily over the next five years.
For South African retailers, the challenge is to harness these technologies in ways that are accessible, affordable and locally relevant. Web based AR tools can deliver interactive product experiences without costly app development, while VR can be leveraged for high impact brand experiences in flagship stores or during major campaigns. Importantly, these technologies can also be used to educate customers, build trust in online shopping, and provide personalised experiences that reflect South Africa’s diverse consumer base. By adopting AR and VR thoughtfully, retailers can differentiate themselves in a competitive market, overcome barriers of trust and access, and ultimately redefine shopping as an engaging, confidence-building journey for the future. Some AR and VR techniques successfully applied in the South African retail space include the following:
Virtual try-on: From beauty to fashion
One of the most practical applications is virtual try-on, which boosts consumer confidence and reduces hesitation. AR allows consumers to try on products like cosmetics, clothing, and glasses digitally, eliminating the need for an in-person visit. Most individuals are more inclined to buy products they have personally tested. Woolworths pioneered this in South Africa, launching innovative digital beauty experiences in 2021. This extended its in-store quality online, providing a unique and differentiated customer experience.
Virtual fitting rooms
Fitting rooms are a source of frustration for numerous consumers, particularly during peak seasons. At times, customers may opt to purchase an item and attempt to use it at home, only to return it because it does not suit properly. A solution to this issue is possible using AR. Virtual mirrors are utilised in retail settings to enable customers see the appearance of clothing on their bodies without the need to physically put it on. Since not all fashion stores have access to this type of technology, AR also creates opportunities for strategic partnerships and collaborations. For example, KFC has implemented AR experiences in its concept store in Braamfontein, allowing customers to engage with interactive displays and virtually explore products in an entertaining and memorable way. This immersive technology not only enhances the in-store experience but also drives foot traffic and brand engagement. Leveraging this platform, fashion designers like Mzukisi Mbane of Imprint ZA can showcase their latest collections in collaboration with KFC, giving customers a unique opportunity to virtually try on or view fashion items while enjoying the restaurant environment. In this way, AR serves both as a marketing tool for KFC and as a creative retail channel for emerging designers, demonstrating the potential of cross-industry innovation.
KFC is a prime example of a brand that provides virtual fitting rooms, allowing customers to try on outfits from their collections without wearing them.
The future of South African retail is exciting, with technologies like AR and VR reshaping how customers shop, especially among Millennials and Generation Z consumers. Retailers who embrace these tools can create personalised, engaging experiences, stand out in a competitive market, and drive growth, heralding a new era of innovation and opportunity.
