How Spatial Commerce is Revolutionizing Retail with AR, VR, and AI

With spatial commerce, you don't go online and check a virtual reality store. Instead, you are physically there as well. Now you can visit the furniture store, browse the furniture section, and get everything you need without leaving your house. This is the most advanced technology, an evolution of the retail space, and it is through virtual reality (VR), augmented reality (AR), spatial computing, and artificial intelligence (AI) that retailing has become significantly more interactive for buyers.

Spatial commerce has captured the attention of many in the retail industry because it has arrived at the right time, particularly amid the COVID-19 pandemic, which has led to a decline in in-store shopping. Some new features of this new commerce include browsing through a showroom without being physically present, receiving product recommendations based on their location, and other technologies that facilitate product discovery, price comparison, and even purchase.

Coming up next, I would like to delve into what is meant by spatial commerce, why it is a pressing issue, the latest improvements being made in this area, and what the shopping experience will be like in 2025, which is creating this significant shift.

Spatial commerce refers to a shopper-centered experience that takes place in a digital, 3D environment, which is interactive and driven by spatial computing augmented with immersive technologies. Instead of viewing 2D product images, customers can now interact with 3D versions of the products that look exactly like the real ones and feel lifelike. They can place them in their space, animate them, or interact with them using voice and motion without any restrictions whatsoever.

It marks the merging point of e-commerce, brick-and-mortar retail, and immersive technology. Thus, it provides the buyer with a seamless purchasing experience across all channels. Regardless of the device used, whether it's a phone, smart glasses, or VR glasses, spatial commerce provides customers with access to the store from anywhere.

To unpack how spatial commerce is achieved, we need to review the set of technological tools that have enabled it.

1. Spatial Computing
   

   It is about computers having the ability to see and interact with the physical universe. Sensors, GPS, and AI have made it possible for spatial computing that is now able to allow local devices to know the whereabouts and geographical surroundings of the devices. Think of devices like Apple's Vision Pro, Microsoft HoloLens, or Meta Quest that can 'see' the things nearby in 3D.

 
2. Augmented Reality (AR)
   

   AR is the technology that shifts computer-generated elements or scenes into the real world via camera or other display devices, thus resulting in the "Augmented Reality."

 
3. Virtual Reality (VR)
   

   VR is all computer-generated and in 3D. Customers can visit virtual stores, visit showrooms, attend product launches and events, and more, all without leaving their homes.

 
4. Artificial Intelligence (AI)
   

   AI is the brain behind the personalization and innovation of spatial commerce. It is responsible for providing real-time recommendations, virtual assistants, gesture recognition, and natural language processing.

 
5. Internet of Things (IoT)
   

   In the case of brick-and-mortar stores, the interaction of IoT with sensors, beacons, and smart devices is used to collect and convey contextual data. This also enables the creation of hyper-personalized, contextually-aware shopping environments.

Spatial commerce is not just a concept in the developmental phase; it is a reality. The largest retailers and tech companies are currently implementing it.

Walmart: Spatial Gaming Meets Shopping

In 2025, Walmart's customer experience underwent a complete transformation with the introduction of an astonishingly realistic 3D shopping experience. This virtual reality journey, which harnesses the power of storytelling, engaging gaming, and commerce, enables all participants to navigate a virtual city or theme park, identify products, redeem coupons, and ultimately make a purchase. All these are happening in a virtual gaming world. This gives a forecast of retail being propelled by metaverse-based virtual reality.

Lowe's Innovation Labs: Digital Twin of Your Home

The augmented reality technology, combined with LiDAR sensors used by Lowe's to create spatial commerce, makes it easier for customers to renovate their homes. The homeowner can, via AR, quickly create a digital twin of their room and place virtual appliances, tiles, or décor items with such precision that the decision-making process is significantly enhanced.

IKEA: Home Visualization with AR

A straightforward review of IKEA's app, for instance, would be the stage where the app enables users to simply use their smartphone's camera to place and replace furniture in their home. Additionally, advanced services were introduced in the 2025 edition of the app, allowing users to design and measure complete rooms automatically, and making purchases possible either directly from the AR view or from the company website.

Snap + Amazon: Social + Spatial Shopping

The social media giant and the world-famous online retailer have brought the physical and digital worlds closer together by developing AR lenses on Snapchat that allow users to virtually try on accessories, shoes, and makeup products, and make immediate purchases. This is an effortless combination of entertainment, social influence, and spatial retail.

Enabling spatial commerce certainly has clear benefits for both brands and consumers.

1. Enhanced Product Visualization
   

   Life-size and super-realistic product models are available for customers to interact with and imagine how they would look in their setting. It's much better than just looking at an image on screen, isn't it? They can walk around it, pick it up, open it, and step back to position it in their room virtually.

 
2. Reduced Product Returns
   

   Shipping is a highly effective method for deceiving customers about the actual appearance of products, particularly in the fashion, home décor, and electronics sectors. Spatial commerce alone can do a great job in returning the share of unsuitable articles that haven't been appropriately marked. Who said try before you buy is impossible?

 
3. Higher Engagement and Conversion Rates
   

   Immersive media increases the time users spend engaged with a brand, thereby improving the likelihood of conversion. As users like the brand, they will follow the homepage immediately, which increases clicks and ultimately leads to sales conversions.

 
4. Personalized and Context-Aware Experiences
   

   Not only do the AI systems provide the system with knowledge of location, but they also ensure the delivery of great solutions tailored to specific settings and propose the most suitable products and services.

 
5. Competitive Brand Differentiation
   

   Being the first to introduce new and highly advanced technology into the market positions your brand uniquely ahead of the competition, and that itself can be a factor in increasing the brand's customer base.

Spatial commerce is passing through a phase of profound prosperity.

It is announced with great certainty that by 2027 the spatial commerce market will skyrocket in value, surpassing a 120 billion figure, and in addition be boosted by the vigorous hardware and AI-based innovations (85% dedicated to VR/AR) market.

More than 70% of Gen Z and Millennials report a preference for brands that offer interactive shopping experiences. The acceleration of the immersive shopping environment to the consumer's side is due to the heavy involvement of AR (Apple's VR set) and VR, and customer satisfaction gained through experience rather than actual product analysis.

The digital and physical worlds are becoming overlapping entities. As businesses build new digital twin stores, add voice-controlled shopping, and introduce 3D product catalogs, the gap between digital and physical commerce becomes even smaller. Spatial commerce is now a must.

If AI is a symbol of spatial commerce to some extent, this is the most secret symbol, the symbol of commerce.

Computer Vision: These systems can recognize people, objects, and their surroundings, thereby enabling them to do so.

Natural Language Processing: It provides the power for the invention of voice-activated shopping assistants, making the shopping experience more accessible and convenient for buyers.

Behavioral Prediction: AI analyzes the user's shopping behavior to understand their intent and recommends products, content, and even augmented reality (AR) experiences accordingly.

If we integrate spatial data with AI, rather than relying on a robotic scenario, we would create the most intimate and, at the same time, the most desirable future for commerce. By combining spatial data, this results in an incredibly personal and intuitive shopping experience.

Over the next five years, spatial commerce will not only transition from a niche to a mainstream phenomenon but also become a ubiquitous presence. The following aspects are expected:

Through virtual reality, whole shopping centers, festivals, and temporary shops will transform into the metaverse. Brands will develop not just virtual but also permanent spaces that will govern how customers can shop, engage, and mingle in these areas.

Thanks to GPS and AI, spatial commerce will serve you content tailored to your location. For example, when you walk by a shop, you may be presented with live offers. Also, when you sit down at a restaurant, an AR menu will appear.

Many companies may opt to sell products with digital-first strategies—utilizing global and, therefore, modern-styled stores or showrooms — and use physical objects as a medium to offer experiences.

The less waste, overstock, and shipping returns borrows the benefits of spatial commerce, hence resulting in a sustainability win due to virtual try-ons and previews.

It's no longer a matter of "if" spatial commerce will come and go, but more a question of "when" it reaches a tipping point, at which point CNC will become the norm. Through the advancement of technology, significant increases in network speed, and the unrelenting demands of consumers, immersive, intelligent retail will dominate the market.

For companies, this presents an opportunity to transform the entire customer journey. The journey from discovering the brand to exploring the product, to finalizing the service at checkout, and beyond can be designed in a more interactive, memorable, and experiential way.

If you belong to a tech-industry pioneer, a brand that leads with a new mindset, or a strategic marketer in content, spatial commerce will be the means of your staying engaged with your audience in the future. Content Elightwalk Technology for a clearer vision to update your online business with new technology!