Shopping in the Age of AI

“The more AI automates the errand, the more valuable the gathering becomes.”

In 𝘚𝘩𝘰𝘱𝘱𝘪𝘯𝘨 𝘪𝘯 𝘵𝘩𝘦 𝘈𝘨𝘦 𝘰𝘧 𝘈𝘐, Whitney Livingston 𝘵alked through the new McKinsey & Company and ICSC research from 3,000+ US consumers on how retail is transforming the CRE Landscape.

I know that shopping “mostly online” isn’t a real thing, and it’s certainly not the leading behavior for any generation or category. Not even Gen Z.

People want to be engaged in the physical world and the very nature of online and offline experiences means they are becoming more intentional about how and when they show up.

Trade areas are now measured in minutes, not miles. It’s not about how far people will drive to a shopping center but whether or not the experience is worth the drive, and how the location fits into their day, and if there’s enough substance to the place to earn a longer stay once they arrive.

My favorite: People are actively seeking places to gather and linger, as a result dining is the most desired offering near retail across every age group, by more than double!

The real story we are living through: AI will be more transactional because it cannot replicate the reason people come together. Properties and retailers who pull curation, tenant chemistry, and placemaking at the center of their asset performance will see the top results.

The real design challenge isn’t resisting the technology, it’s building space for what the technology frees people up to do: be somewhere, with someone.