Retailers Double Down on Stores as AI Rewires Shopping

· Retail & E-commerce · United States

As artificial intelligence reshapes how consumers discover and buy, major retailers are increasing investment in physical stores rather than retreating from them. Executives at Rhone, Anthropologie, Kohl's, Brunt and Crocs explained why brick-and-mortar remains central to their strategies heading into 2027, pointing to shoppers' desire for physical experiences. At the same time, industry analysis highlights that AI is "rewiring" the behavior of Gen Z and Gen Alpha consumers, who increasingly seek tactile, in-person retail even as digital tools drive discovery. The tension between algorithmic convenience and experiential shopping is forcing retailers to reconsider store formats, staffing and marketing. The shift matters for holiday planning and long-term capital spending, as chains weigh store openings and remodels against digital and AI investments, with the balance likely to shape retail footprints and marketing budgets over the next several years.

Why it matters：It signals that AI-driven commerce is not replacing physical retail but reshaping it, affecting how chains allocate capital, design stores and reach younger consumers.

Key points

  • Executives at Rhone, Anthropologie, Kohl's, Brunt and Crocs weighed in on brick-and-mortar's staying power heading into 2027.
  • AI is described as "rewiring" the behavior of Gen Z and Gen Alpha consumers, who still crave physical experiences.
  • Retailers must balance store investment against digital and AI spending as holiday planning accelerates.

Sources (original reporting)

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