Customer Experience

Virtual try-on kiosks gain traction as retailers seek to reduce returns

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October 14, 2026

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Retailers are increasingly exploring artificial intelligence-powered virtual try-on kiosks to help shoppers make more informed clothing purchases and reduce costly merchandise returns. The technology allows customers to see digital representations of how garments might look on their bodies before buying them. Advances in AI-generated imagery are making virtual fitting systems more realistic, potentially addressing limitations that hindered earlier versions of the technology, according to an Us Weekly report.

The financial incentive is significant. The National Retail Federation estimates 19.3% of online purchases would be returned in 2025, creating expenses associated with shipping, processing and reselling merchandise. Technology companies are responding with more sophisticated virtual fitting systems. Startup Catches, for example, said its AI technology can produce highly realistic clothing previews. Meanwhile, a 2024 Grand View Research analysis projects the global virtual try-on market would grow from $18.1 billion in 2026 to $46.4 billion by 2030.

British supermarket chain Tesco is among the retailers testing the technology in physical stores. The company has introduced a virtual fitting kiosk at its Sandhurst location as part of an experimental F&F Clothing service hub. The installation allows shoppers to preview clothing digitally, with the results potentially informing future expansion. Although retailers see opportunities to improve purchasing decisions and protect profit margins, the extent to which virtual try-on kiosks actually reduce returns remains to be demonstrated.