U.S. Retailers Remain Optimistic but Cautious Amid Inflation and Macroeconomic Volatility
Event summary
- Toast's 2026 Voice of the Retail Industry Survey polled 340 U.S. retail operators with fewer than 16 locations.
- 94% of operators rated their business health as good or excellent, despite persistent inflation and macroeconomic volatility.
- 66% of operators are likely to open a new location in the next year, with 31% prioritizing operational simplification.
- 90% of operators are experimenting with AI to enhance their operations.
- Inventory management emerged as the top pain point, up 6 percentage points year-over-year.
The big picture
The survey highlights a resilient yet cautious retail sector, with operators balancing growth ambitions with cost management and technological adoption. The emphasis on AI and operational simplification reflects broader industry trends toward efficiency and digital transformation. The data suggests that while retailers remain confident, they are acutely aware of the need to navigate an uncertain economic landscape.
What we're watching
- AI Adoption
- How the pace of AI experimentation will translate into tangible operational efficiencies and cost savings for retailers.
- Operational Simplification
- Whether the focus on simplifying operations will lead to measurable improvements in profitability and employee productivity.
- Macroeconomic Resilience
- The extent to which retailers can sustain growth plans amid persistent inflation and macroeconomic volatility.