The research focuses on how augmented reality (AR) and the Internet of Things (IoT) might work together to create a novel retail environment. This integrated system revolutionizes how customers engage with products by fusing the digital and real worlds. Smartphones and other devices with AR capabilities allow customers to virtually try on products before purchasing. Smart mirrors and sensor-enabled shelving are just two examples of the IoT-powered interactive displays available today. These fusions of AR and the IoT improve the retail experience and facilitate choice. Capturing data from the physical environment, sensors allow for customized experiences. The extensive product data stored by cloud services paves the way for rapid data processing. However, there are obstacles, such as ensuring data privacy and security and coordinating AR-IoT smoothly. Finding a happy medium between technological complexity and ease of use is essential for a satisfying buying experience. The combination of AR and the IoT broadens the retail experience and has the potential to revolutionize the way people purchase. © 2024 Elsevier B.V., All rights reserved.