The primary application of augmented reality (AR) in retail is enhancing the shopping experience by overlaying digital information onto the physical environment. AR allows customers to visualize products in their own space, try on virtual clothing, or preview how furniture looks in their home before purchasing. This immersive experience fosters engagement, reduces uncertainty, and can lead to higher sales conversion rates. Retailers utilize AR to create unique marketing experiences, build brand loyalty, and differentiate themselves in a crowded market, ultimately transforming consumer interactions with products.