Report examines how AI and evolving consumer behaviors reinforce the importance of physical stores and raise the stakes for retailers and real estate leaders

NEW YORK: ICSC and McKinsey & Company today announced the release of “Shopping in the age of AI: Redefining stores for a new era,” a new report that reveals the structural forces reshaping consumer shopping behavior and highlights actionable insights for retailers and property developers to succeed in the evolving retail landscape.

The report, based on interviews with retail and real estate leaders and a consumer survey of 3,004 US consumers, identifies three forces reshaping the function of physical retail: the growing use of AI in the shopping journey, consumers’ rising expectations for transparency and convenience, and shifts in consumer spending power and behaviors. Together, these shifts are redefining the role of the store-requiring retailers and developers to clearly define each location’s mission and invest decisively to deliver on it.

“This report presents an opportunity for retailers and property owners: A clear mission for their physical footprint is essential to stand out in a landscape of intelligent technologies and attract consumers to their stores and centers,” said Tom McGee, President and CEO of ICSC. “As AI transforms the shopping journey and customer expectations remain sky-high, retailers and CRE leaders will need to make disciplined, intentional investments that ensure every store in their portfolio is aligned to a clear strategic purpose – or risk missing out on growing spending power.”

“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. “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.”

Convenience vs. discovery: The new shopping calculus

AI-mediated search and purchase automation are reshaping consumer expectations, with McKinsey estimating up to $1 trillion in U.S. B2C retail revenue from agentic commerce by 2030. As AI agents increasingly handle routine shopping, retailers and shopping centers must clearly deliver either convenience or discovery. Convenience-optimized stores emphasize speed, intuitive navigation, and in-stock reliability-cited by 37% of consumers as a top driver-while successful discovery-led formats prioritize engagement through experiential retail, digital storytelling, and personalized service. This approach is especially critical for younger shoppers, with more than 40% of Gen Z and millennials agreeing that experiential retail makes them more likely to shop a retailer.

A new technology and talent playbook

Retailers and real estate leaders must move beyond one-size-fits-all formats by designing stores with a clear purpose to each location’s role; aligning layout, assortment, technology, and talent to deliver either speed or engagement. Technology will be critical, reducing friction in convenience-led stores while enhancing service and personalization in discovery-led environments as landlords curate tenant mixes that blend retail, dining, and services into cohesive destinations. These shifts require operational redesign and disciplined capital allocation, with significant upside: McKinsey estimates the top decile will capture more than 85% of sector economic profit, underscoring the value of building store systems aligned to evolving consumer behavior.

To read the full report, click here.

About ICSC

ICSC is the preeminent membership organization serving the commercial real estate and retail industries. The organization promotes and elevates the marketplaces and spaces where people shop, dine, work, play and gather as foundational and vital ingredients of communities and economies. ICSC produces experiences that create connections and catalyze deals; aggressively advocates to shape public policy; develops high-impact marketing and public relations that influence opinion; provides an enduring platform for professional success; and creates forward-thinking content with actionable insights–all of which drive industry innovation and growth. For more information, please visit www.ICSC.com.

About McKinsey

McKinsey is a global management consulting firm committed to helping organizations accelerate sustainable and inclusive growth. We work with clients across the private, public, and social sectors to solve complex problems and create positive change for all their stakeholders. We combine bold strategies and transformative technologies to help organizations innovate more sustainably, achieve lasting gains in performance, and build workforces that will thrive for this generation and the next. www.mckinsey.com

Fonte: Business Wire