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By Courtney Rivera 21/08/2026 3 min read 3 views

Despite the rapid rise of artificial intelligence in shopping, the trip to a physical location remains a decisive moment in the consumer journey, according to Whitney Livingston, chief operating officer of ICSC. Speaking at GlobeSt.’s Women of Influence Conference, Livingston noted that while technology influences the process, the in-store experience still validates the final decision.

Consumers are not pulling back from spending; rather, they are becoming more deliberate about where and how they allocate their budgets. The research surveyed more than 3,000 consumers and included interviews with retail and real estate leaders, revealing a shift in behavior rather than a decline in volume.

The 2026 consumer has not stopped spending, according to Livingston. ICSC data shows 77% of consumers still shop in physical stores. Instead of abandoning brick-and-mortar locations, shoppers are demanding better value, clearer brand storytelling and in-person experiences that justify the effort of making a trip.

AI Changes Pre-Visit Behavior

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. Consumers are doing more of the work before they arrive.

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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. 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. But she cautioned 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.

The Economics of Integrated Strategies

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.

The store isn’t being replaced by digital channels, Livingston insisted.

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.

It is becoming increasingly difficult for a single channel to handle the entire customer lifecycle. In previous shifts toward digital-only strategies, retailers often saw an immediate drop in foot traffic without a corresponding, sustained increase in online revenue. This latest data suggests that without a physical presence to validate the online promise, digital-only sales often plateau while the brand loses the tactile connection that drives loyalty. The current trend suggests retailers must maintain a hybrid model where the digital tool serves as the funnel and the physical location acts as the destination.

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. 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.