This study investigated the influence of the perceived characteristics of AR fashion retail technology on value co-creation and continued use intention. This study also examines the moderating role of technology readiness in the effects of the perceived characteristics of AR fashion retail technology on value co-creation. A total of 241 university students who had experience using AR fashion retail technology completed the questionnaire. The results were as follows. First, there were five factors in the perceived characteristics of AR fashion retail technology: presence, aesthetic attractiveness, ease of use, shopping usefulness, and perceived enjoyment. Second, aesthetic attractiveness, shopping usefulness, and perceived enjoyment had positive impacts on value co-creation. Third, value co-creation had a positive impact on continued use intention of AR retail technology. Fourth, there were significant differences in the effect of aesthetic attractiveness and shopping usefulness on value co-creation by the innovativeness dimension of technology readiness. Fifth, there was a significant difference in the effect of ease of use on value co-creation by the optimism dimension of technology readiness. The results of this study should provide guidance for marketers or retailers interested in the application of AR fashion retail technology in their stores.