Augmented reality presents numerous opportunities and challenges for marketers to enrich the retail shopping experience. Although the technology is well established, practical marketing applications are rare, and the existing literature is unstructured. We conduct a systematic literature review with the goal of synthesizing the latest developments in the field and developing research propositions. We analyze 91 papers and identify four major enablers of AR in retail marketing: enhancement of the consumer experience, improvement of the customer-brand relationship, support of marketing activities, and promotion of marketing competitiveness. The challenges of AR adoption in marketing include technical limitations, consumer-oriented challenges, technological immaturity, and organizational challenges.