Augmented Reality in the Retail Outlet: Shaping the Retail Shopping Experience—A Cross‐Cultural Study

ABSTRACT Brick‐and‐mortar stores in the e‐commerce era with declining revenues emphasize augmented reality (AR) to foster brand loyalty. This study examines how AR technological and cultural factors impact experiential values (EV) (playfulness and aesthetics), which subsequently influence brand loyalty in the UK and UAE, mediated by satisfaction. Whereas AR psychological engagement moderates the satisfaction‐brand‐loyalty link. Using the Stimulus–Organism–Response (SOR) theory, data were collected via questionnaires from 500 women, with an 84% response rate. Analysis reveals AR technological and cultural factors significantly impact EVs. Meanwhile, satisfaction mediates the relationship between EV and brand loyalty. However, the magnitude of these effects differs between the UK and UAE. AR's psychological engagement as a moderator is insignificant. The study offers unique insights by framing cultural factors as contextual stimuli within the SOR framework, enriching AR research by shaping EV. The study contributes novelty by examining the impact of EV on brand loyalty via satisfaction in the beauty industry with innovative technology AR magic mirror in the UK. Additionally, pioneering AR research in the underrepresented UAE beauty industry. The study offers substantive insights for researchers and practitioners alike, recommending culturally adaptive AR solutions, personalized and playful features, and sleek interfaces for the UK and UAE markets, respectively.