Shoppers continue to spend, though they have become more selective about where and how they make purchases. New research from ICSC, presented by chief operating officer Whitney Livingston at an industry conference, highlights these changing habits.
AI prepares consumers before they enter stores
ICSC data shows 77% of consumers still shop in physical stores. The process leading to those visits has evolved. Two-thirds have used AI tools in recent months to compare products, read reviews, and narrow choices before leaving home.
Livingston noted that the most noticeable change occurs before the store visit. Consumers now complete much of the decision-making process in advance. The physical trip serves as a final check—an opportunity to touch a product, test its fit, and confirm whether the brand meets expectations.
Retailers face increased pressure to justify in-person visits. If AI has already handled the research, stores must offer something beyond what a screen can provide. That may involve competitive pricing, compelling brand narratives, or experiences that cannot be replicated online.
Younger generations value stores for new reasons
The belief that younger shoppers avoid physical retail does not align with the data. Nearly half of all consumers split their purchases between online and in-store channels, and no generation relies exclusively on digital options. Gen Z, in particular, views stores as social environments—places to try on items, meet friends, or spend time in a way that feels more purposeful than scrolling.
Livingston emphasized that digital channels have not replaced physical locations. For retailers with both online and brick-and-mortar presence, the relationship between the two is clear: every dollar spent online with a brand that also operates stores generates an additional $1.25 in in-person sales. The key challenge lies in creating a seamless transition between channels—returns that do not frustrate, consistent inventory, and messaging that remains uniform regardless of where a purchase occurs.
Trust plays a central role. When a customer arrives at a store after AI has assisted with comparisons, the in-person experience must offer something algorithms cannot. That could mean a knowledgeable salesperson, a product demonstration, or the reassurance of seeing an item in person.
AI may influence $1 trillion in retail sales by 2030
Agentic commerce—AI systems capable of researching and completing purchases independently—is already emerging. Livingston pointed to projections that agentic commerce could represent as much as $1 trillion in retail revenue by 2030. This development does not render stores obsolete but instead raises expectations for what happens when a customer enters a physical location.
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Livingston explained that if AI helps consumers compare options, stores must help them validate those choices, experience products, and build trust in the brand. Retailers must decide whether their physical locations can meet these demands or risk becoming just another step in a process that could have concluded online.
The data still favors stores for now. That advantage will not last without adaptation. The in-person experience must feel valuable, whether by saving time, offering something unique, or adding a human touch.
Livingston summarized the new standard: “A store visit must either simplify life or make the time spent worthwhile.” This principle now guides decisions for retailers and property owners alike.
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