Is it just me, or malls today feel more like hangout spots than shopping destinations? Between indoor playgrounds, food courts, and selfie walls, it’s clear they’re evolving more into leisure spaces and less into retail hubs. Behind the scenes, the numbers tell an even bigger story: in the US alone, over 50,000 brick-and-mortar stores are expected to close by 2026.

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This shift isn’t just the result of a tough economy or temporary crises. It’s not about inflation, or even the aftershocks of the pandemic.The decline of physical store sales is the new normal. Online shopping is taking the lead, and traditional retail is being forced to rethink its place in the modern shopping journey.

Consumer Behavior is changing

Let’s face it – convenience is king. While the in-store experience still has its charm, the drive to the store is not that fun. More and more people are choosing ease and speed over wandering through aisles. Why fight traffic, search for parking, and stand in line when you can place an order from the couch, track it in real time, and have it delivered the next day – in some cases even the same day?

While the convenience factor applies perfectly to Boomers, Gen Z and Millennials are even more digitally oriented. 

A few years ago, brick and mortar was still in the lead, even after the pandemic, mostly due to limited payment options and the reluctance from older generations to pay using cards. But the gap is narrowing fast, and with every passing year, the scales keep tipping toward digital-first behavior.

And while online shopping may have once felt a bit cold or impersonal, that’s no longer the case. Thanks to AI-driven personalization, shoppers now get curated recommendations, tailored search results, and even custom promotions based on behavior and preferences.

That kind of “just-for-you” touch, once the sign of great in-store service, is now available with a few clicks and it’s quietly redefining what customer experience really means.

It’s Not Just About Price Anymore

There’s a common misconception that people shop online just to save money, but that’s only part of the picture. These days, it’s less about finding the lowest price and more about finding exactly what you want, when you want it. Online stores offer a level of variety that physical locations simply can’t match, from niche brands to extended size ranges, and even items you didn’t know you needed until the algorithms suggested them.

Stock availability is another game changer. How many times have you visited a store only to find your size or preferred color missing? Online, that frustration is rare. Plus, you now get the added reassurance of reviews – real opinions from real people who’ve tried the product. Throw in generous return policies, easy delivery options like courier boxes and it’s no wonder consumers are starting to choose digital shopping journeys over in-store visits.

Physical Stores Still Matter – But Their Role Has Changed

I’ll admit it – I still visit  stores, but not always to buy. Like many shoppers these days, I go to see the product, get a feel for it, maybe try it on, and then head online to place the actual order. It’s a common habit called showrooming, and it highlights just how much the role of physical retail has evolved. Stores are no longer just transactional spaces, they’re becoming touchpoints for brand experience, discovery, and convenience.

Today’s consumers expect flexibility. We want to buy online and return in-store, or reserve online and try in-store – and we’re not shy about switching channels depending on what’s easiest at the moment. Physical stores still play a role and that role is about creating a seamless experience, wherever the shopper chooses to show up.


What does this mean for retailers? Retail is no longer just about stocking shelves and window displays.Instead, they have to invest in fast-loading, user-friendly online storefronts, robust SEO and social campaigns, and flexible fulfillment options (like ship-from-store, click-and-collect, and same‑day delivery). It’s a tall order, but essential for staying competitive in a market where “buy online, pick up in-store” is increasingly the norm.

Second, physical stores need to evolve from simple points of sale into experience-driven service hubs. The smartest retailers are reimagining their spaces as interactive showrooms, places where customers can touch, feel and try on products. 

Picture this: a customer reserves a product in the app, tries it on in-store, and either takes it home or has it delivered later. That kind of fluid, connected journey, powered by real-time inventory and automation, is what keeps shoppers coming back.Retailers that understand this shift are thriving. Think of Zara, where you can browse the latest collections in-store but often have to order online for size availability. Apple has turned its stores into interactive brand hubs – part tech gallery, part customer support center. And Decathlon nails the hybrid model with in-store pick-up, try-before-you-buy options, and smooth returns no matter where you made the purchase. These aren’t just shops; they’re multi-purpose hubs in an omnichannel world.

AI-driven shopping is just getting started

From smart recommendations to predictive search and dynamic pricing, AI is quickly becoming the backbone of online retail. 

eCommerce tools for sure did not beat around the bush. Magento, Adobe Commerce, Shopware, Shopify… the level that these platforms have reached in the latest years is staggering. AI is the new norm, and they all employ complex functions to deliver personalized experiences, tailored to each shopper, as well as powerful analytics that help merchants make informed decisions.

Adobe Commerce relies on its Sensei engine to create personalized content for each visitor, uncover actionable insights, and automate workflows. Shopware has the highly acclaimed AI Copilot, which not only can generate content, but can also segment customers based on their behaviour, send automated emails, and create custom checkout messages for customers.

More than that, Shopify has announced that it aims to become the first AI-Native Commerce platform. With a new Storefront MCP (Merchant Custom Platform) that gives AI tools direct access to your store’s live data, chatbots can browse the catalog, answer questions, build shopping carts, and even initiate checkout. Even bigger news… Shopify is opening its entire product catalog to external AI applications. Platforms like Perplexity can now pull data from millions of merchants. This turns Shopify into a new kind of product search engine.

What does the future hold

Well, we’re not talking about iconic shopping streets like London’s Liverpool Street or the Galleria Vittorio Emanuele in Milan, where having a store is more about prestige than practicality. But the days of massive department stores are fading. In their place, we start to see compact, experience-driven spaces focused on curation, service, and fulfillment. These stores won’t try to stock everything; instead, they’ll serve as brand touchpoints – places to try, learn, pick up, or return. 

At the same time, smart eCommerce platforms and marketplaces are reshaping the retail landscape. Retailers can’t afford to ignore giants like Amazon, Zalando, or even niche local players like eMag or Trendyol. These platforms offer scale, trust, and speed, benefits that are costly and time-consuming to build from scratch. While brand-owned online stores will always be essential for storytelling and customer loyalty, savvy retailers are playing both sides: investing in their own digital experiences while tapping into marketplaces to boost reach and revenue.

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