Report AI generated image of the shopping mall of the future Credits: FashionUnited Artificial intelligence (AI) is not only changing how we shop online, but it's also transforming physical retail. While stores are still viewed as essential “anchors” for commerce in 2030, AI, together with shifting consumer behaviours, continues to reshape the purpose of physical retail. A new study released by ICSC and McKinsey & Company, titled "Shopping in the Age of AI: Redefining Stores for a New Era," draws on a survey of more than 3,000 US consumers and in-depth interviews with retail and real estate leaders, to identify the three main forces changing the physical retail landscape: the accelerating use of AI in the shopping journey, rising consumer expectations for transparency and convenience, and a generational shift in consumer spending power toward millennials and Gen Z. In order to remain relevant, as well as competitive, retailers and developers are encouraged to rethink their retail strategy and ensure they deliver what their customers want on all fronts. “AI isn’t eliminating the store—it’s raising the bar for what it needs to deliver,” said Colleen Baum, senior partner at McKinsey & Company, in a statement. “As more of the shopping journey moves upstream, the stores that win will be those with a clearly defined role—whether enabling speed and certainty or creating experiences worth the trip.” Here, we delve into three actionable steps retailers can take to ensure they continue meeting their customers where they are at. Store visits will become less…
