As retailers attempt to find new ways to digitally engage consumers and provide a memorable customer experience, Augmented Reality (AR) features are becoming increasingly common in stores and on mobile apps. Both e-commerce and brick and mortar retailers have been experimenting with AR to solve problems such as high product return rates, declining in-store traffic, and customer loyalty. When used by employees, AR also has the potential to improve the retailers’ bottom line by delivering operational efficiency savings. These perceived benefits have led many to claim that AR will be a game-changer in the retail sector. This report assesses the extent to which this will be true by examining use cases, industry drivers, and the key players associated with AR in retail.