AI is changing shopping — and what stores are for
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AI is changing how people decide what to buy, raising the stakes for physical stores.
Why it matters: More of the shopping journey is happening before consumers ever enter a physical store, a new report shows — pushing retailers to rethink what brick-and-mortar is really for.
Driving the news: A new report from McKinsey and ICSC shows that as shoppers research, compare and refine choices before leaving home, store visits are becoming less frequent but more intentional.
- Shoppers are becoming more informed and more selective — making it harder for stores to succeed without a clear purpose, ICSC CEO Tom McGee tells Axios.
The big picture: AI-powered shopping could drive up to $1 trillion in U.S. retail spending by 2030, according to the report — accelerating a major shift in how consumers make buying decisions.
- The report finds physical stores are increasingly the final step in purchase decisions — pushing retailers to rethink the purpose and value of physical stores, from fulfilling online orders to in-person experiences.
Between the lines: AI is helping shoppers narrow options, but not making the final call.
- Many shoppers are more likely to purchase when guided to the right choice.
- Coveo's 2026 Commerce Relevance Report found only 16% of shoppers are comfortable letting an AI assistant shop on their behalf.
Zoom in: The shift is already changing how often — and why — people go to stores.
- Consumers are increasingly using AI tools to zero in on what to buy before they ever enter a store.
- Store visits are becoming less frequent but more purposeful, McGee said.
- Shoppers are arriving with clearer intent and higher expectations — putting more pressure on stores to deliver quickly or offer something shoppers can't get elsewhere.
That shift is forcing retailers to be more deliberate about what each store is designed to do — redesigning locations around a single mission, including:
- Convenience hubs: Focused on speed, inventory and frictionless pickup.
- Discovery destinations: Built around experience, service and engagement.
Yes, but: Trying to be "all things to all people" in every store will become increasingly difficult, McGee said.
- Stores that don't clearly deliver on either convenience or experience risk losing relevance as shopping becomes more selective, according to the report.
What's next: Expect more stores — and shopping centers — to be designed around how consumers actually shop, as retailers adapt to a world where more decisions happen before customers ever walk in the door.
The bottom line: In the AI era, stores aren't disappearing — but the ones without a clear purpose risk being left behind.
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