AI Is Reshaping Shopping But Stores Still Close The Deal

Consumers are leaning into AI to do much of the heavy lifting before they ever set foot in a store, but the trip to a physical location remains a decisive moment in the shopping journey, according to Whitney Livingston, chief operating officer of ICSC, speaking on the "Shopping in the Age of AI: How Retail is Transforming the CRE Landscape" panel at GlobeSt.'s Women of Influence Conference. Drawing on research that surveyed more than 3,000 consumers and included interviews with retail and retail real estate leaders, Livingston said shoppers have not pulled back from spending; rather, they are more deliberate about where and how they spend their money.

"The 2026 consumer has not stopped spending," Livingston said, noting that ICSC data shows 77% of consumers still shop in physical stores. Instead of walking away from brick-and-mortar, she said, consumers are demanding better value, clearer brand storytelling and in-person experiences that justify the effort of making a trip.

AI is already changing that calculus. Livingston said 68% of consumers have used at least one AI tool in recent months, often to compare products, research purchases and narrow options before deciding whether to visit a store. "The most immediate impact is what happens before the store visit," she said. "Consumers are doing more of the work before they arrive". As a result, store visits are becoming more purposeful, with the physical environment increasingly responsible for validating decisions, delivering tactile product experiences and building brand trust.

Omnichannel Economics Still Favor Bricks And Mortar

The data presented by Livingston also pushes back against the idea that younger shoppers are abandoning stores in favor of digital-only channels. Nearly half of consumers—48%—shop both online and in stores, and no generation shops primarily through digital channels alone, according to the ICSC research she cited. Gen Z, in particular, continues to value stores for social and experiential reasons, seeking places to interact with products and enjoy experiences that cannot be replicated online, she said. "The store isn't being replaced by digital channels," Livingston said.

For retailers that operate both physical and digital footprints, the economics of an integrated omnichannel strategy are compelling. According to Livingston, for every dollar consumers spend online with a retailer that also has physical stores, those locations generate an additional $1.25 in sales. She emphasized that reducing friction between online and in-store experiences—through seamless returns, easy transitions between channels and consistent brand messaging—has become a priority for retailers.

Agentic commerce, or AI systems capable of independently researching and facilitating purchases, is another emerging layer that could reshape how revenue flows through the retail ecosystem. Livingston pointed to projections that agentic commerce could represent as much as $1 trillion in retail revenue by 2030, noting that while AI may simplify product discovery, it also raises the stakes for physical stores that must close the loop on those decisions. "If AI helps me compare options, the store has to help me validate them, experience them and create trust with the brand," she said.

What Makes A Store Trip Worth It

Ultimately, Livingston said, consumers are evaluating each trip through a simple lens: is it worth the effort. "A store trip has to do one of two things," she said. "Either make their life easier or make it feel worth the time". That framing carries clear implications for retailers and their landlords. If AI is streamlining the pre-trip research phase, then physical stores must differentiate more sharply on convenience, value and experience to earn their place in the journey.

For retail owners and investors, the ICSC data and panel insights suggest that well-located, experience-forward centers are positioned to benefit as the line between digital discovery and physical execution becomes more defined. With most consumers still visiting stores and omnichannel strategies driving incremental in-store sales, assets that support frictionless returns, engaging environments and strong brand storytelling are likely to remain central to the retail landscape, even as AI tools become a standard part of how shoppers plan their purchases.

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