What: Research validates AR's effectiveness in retail strategy by examining Egyptian Gen Z consumers' responses to digital-physical shopping integration.

Why it is important: The findings offer a blueprint for AR implementation in emerging markets, demonstrating how retailers can balance technology innovation with varying levels of consumer readiness to drive engagement and sales.

This comprehensive study examines the integration of augmented reality (AR) into retail mix strategy from Generation Z's perspective in Egypt. The research investigates how AR influences customer behavioural intentions through enhanced interaction and engagement, considering both perceived informativeness and playfulness. Through structural equation modelling analysis of 400 respondents, the study reveals that AR significantly impacts consumer responses by providing detailed product information and creating enjoyable shopping experiences. The findings demonstrate that individuals' comfort with technology plays a crucial role in shaping their behavioural intentions when interacting with AR applications. The research validates that AR enhances customer experience through improved product visualization and interaction, leading to more informed purchase decisions. Notably, the study shows that retailers must consider varying levels of technology readiness among consumers when implementing AR solutions, as this significantly affects adoption and engagement rates. These insights provide valuable guidance for retailers seeking to implement AR technology in markets where digital transformation meets traditional shopping cultures.

IADS Notes: The research findings on AR implementation in Egyptian retail reflect significant global developments in 2024-2025. The Mall Group's AR navigation system, which boosted customer engagement by 31% , validates the study's conclusions about AR's positive impact on consumer behavior. The focus on Generation Z proves timely, with this demographic wielding USD 360 billion in spending power and actively seeking tech-enabled experiences . The study's emphasis on informativeness and playfulness aligns with successful implementations like Dubai Mall's House of Hype , where immersive technology effectively combines information delivery with entertainment. These market developments, alongside Future Stores' adaptable AR implementations , confirm the research's insights into technology readiness and its influence on purchase intentions.

Adopting augmented reality into retailing mix strategy: Generation Z’s perspective in Egypt