The Internet of Things is an entity of connected devices and objects connected to the network. Its potential has been observed in many different areas. Due to the strong competition in the retail sector, IoT-innovations become slowly more common and change the purchase transaction radically. The existing literature on these technologies has focused in particular on their technical characteristics, while the business facet, especially customer experience, has been neglected. This literature review discusses the Internet of Things in the retail industry from the customer point of view, by introducing the most essential applications and their impact on customer experience. The results present the impacts, both opportunities and challenges of the Internet of Things on customer experience, and further on user experience, shopping experience and service experience. The sources of this thesis are peer-reviewed scientific articles and books, which have been retrieved from Google Scholar, Scopus and JYKDOK databases. In addition, there have been used a few online sources related to the topic.