The rapid evolution of immersive technologies has transformed the landscape of digital commerce, with augmented reality (AR) emerging as a powerful tool for enhancing consumer engagement and decision-making in retail environments. AR enables interactive overlays of digital content on the physical world, providing consumers with personalized and spatially aware experiences. From virtual try-ons and 3D product visualizations to interactive in-store navigation and gamified promotions, AR shopping applications are redefining how customers perceive and interact with brands. This paper conducts a comprehensive literature review of AR-enabled shopping experiences, focusing on the technological mechanisms, customer engagement strategies, and behavioral outcomes associated with immersive retail environments. It explores how AR affects key retail metrics such as purchase intention, customer satisfaction, and brand loyalty, while also addressing challenges related to usability, technological readiness, and privacy concerns. A conceptual framework is proposed to organize the interplay between AR technology, consumer psychology, and retail outcomes. The study also identifies current gaps in research and practice, particularly in the areas of emotional engagement, social shopping, and cross-platform consistency. The findings contribute theoretical clarity and practical guidance for retailers, marketers, and technology designers seeking to harness AR for next-generation customer experience strategies.