IN THIS ISSUE, WE DISCUSS HOW THE IMPACT OF AI IS AFFECTING THE RETAIL INDUSTRY AND WHAT CHANGES WE SHOULD EXPECT TO SEE… HOW FAST WE WILL SEE THEM.
SO HOW CAN WE GET CONSUMERS BACK TO THE STORE? FROM DINING AND COFFEE SHOPS, TO IMMERSIVE INSTORE EXPERIENCES, SEE ALL OF THE WAYS RETAILERS ARE PIVOTING TO ENHANCE BRICK AND MORTAR APPEAL.
FROM RETAIL TO RUNWAY!
WE TRACKED EVERY SINGLE SS26 SHOW SO YOU DIDN’T HAVE TO AND CURATED A FULL RUNWAY JEWELRY HIGHLIGHT.
AiRE Y O U
How Ai is fundamentally re-shaping retail. . .
ReAdY FoR It?
2020: THE SETUP YEAR
• Stores start using AI to predict what products will sell and avoid running out.
• Online shopping explodes (pandemic shift)
→ brands rush to improve digital tools.
• AI starts suggesting products you might like based on your past shopping.
2022: CREATIVE AI TAKES OFF
2021: CONNECTING ONLINE & IN-STORE
• AI tools help brands write emails, ads, and social posts automatically.
• Stores test smart cameras and sensors that track what’s selling. Consumers start noticing how AI shapes what they see and buy online.
• Retailers begin blending online data with in-store shopping (what you browse online shapes what’s shown in store).
• Chatbots and virtual shopping helpers become common on websites.
• AI boosts online sales many shoppers say product suggestions actually help them buy.
• But people also start questioning privacy who’s tracking what they like or say?
2024: SHOPPING GETS SMARTER
• “Smart” features like virtual try-ons and AI outfit suggestions go mainstream.
• AI helps stores track shelves, set prices, and reorder stock without humans.
• Consumers expect speed and personalization, not just good products.
• Big investments in AI tech it’s now a must-have for major retailers.
2025: WHERE WE ARE AT, SO FAR….
• AI is built into most shopping apps and websites — from Amazon to local boutiques.
• AI can “remember” shopper preferences and carry on conversations across visits.
• Retailers are focusing on trust and transparency explaining how AI uses data.
• The big shift: from “using AI” to “making AI feel more human and helpful.”
Ai Impact on Customer Experience
Hyper-Personalization: AI analyzes customer browsing, purchase history, and real-time behavior to provide tailored product recommendations and personalized marketing campaigns.
Frictionless Checkout: Innovations like cashier-less stores and automated self-checkout systems use computer vision to enable seamless transactions, reducing wait times and improving convenience.
Ai Enhanced In-Store Experiences: Brick-andmortar stores use Ai for interactive features like ARpowered smart mirrors for virtual try-ons (e.g., Sephora's "Virtual Artist")
Ai Improved Customer Service:
Ai-powered chatbots and virtual assistants provide instant, 24/7 support for routine inquiries, freeing human employees to handle more complex issues that require empathy and problemsolving skills.
Ai Impact on Operations and Efficiency
Supply Chain Optimization: Ai is used to optimize logistics, including warehouse automation and delivery route planning, which lowers transportation costs, improves efficiency, and enhances supply chain resilience.
Fraud Detection and Loss Prevention: Ai systems analyze transaction patterns and in-store video feeds in real-time to detect suspicious activities and prevent theft or fraudulent transactions, reducing significant financial losses for retailers.
Data-Driven Decision Making: Ai tools transform vast amounts of data into actionable insights, enabling retailers to make informed decisions regarding pricing strategies, product assortment, and marketing effectiveness.
“Ai is projected to add between 150 and 275 billion dollars to the apparel, fashion and luxury sectors by 2028…”
“While the machine isn’t slowing down, maybe we are. What if the real threat isn’t AI taking over, but us stepping back?”
“We haven’t been as creative as we once were, outsourcing, the new trend cycle, and the constant pressure to deliver have flattened creativity completely over the last decades.
“Our deadlines push us towards the safest option, repackaging what worked before rather than trying something new, we’ve mistaken recycling for creating.” – Emma Grace Bailey
Ai Impact on the Workforce
Ai is expected to redefine roles rather than eliminate them entirely. While routine and repetitive tasks are highly vulnerable to Ai, employees are being reskilled to manage Ai systems, provide technical oversight, and focus on higher-value customer interactions. Retailers are investing in training programs to prepare their workforce with the necessary skills for this new era of retail.
Challenges and Considerations
Data Privacy and Security: The extensive collection of customer data raises significant privacy concerns. Retailers must implement robust data protection measures and be transparent about data usage to maintain consumer trust.
Integration and Cost: Implementing Ai requires significant investment in technology and infrastructure.
Smarter Inventory Management and Demand Forecasting: Ai algorithms analyze historical sales data, market trends, and even external factors like weather to predict product demand with high accuracy. This minimizes stockouts and overstocking, reducing waste and cutting costs.
Ethical Concerns: Issues such as algorithmic bias and the potential for job displacement require careful consideration and the development of responsible Ai policies.
A REEL RETAIL EXPERIENCE
So, how do we bring back brick and mortar shopping? With advances in Ai and ecommerce, the in-store industry culture is currently undergoing a significant transformation, shifting from purely product-centric sales, to experience-driven engagement to re-engage shoppers beyond the scroll…
HERE’S HOW:
• Visual Shareability: Stores are creating “moments” worth photographing; dramatic design, unique zones (cafés, photo-studios, & customization) that attract social posts.
• Time-in-store / Dwell Time: Features like cafés, event spaces, fitness classes, photo studios encourage users to stay longer, increasing engagement.
• Community / Experience over Transaction: Many formats shift from just selling products to offering experiences, community gatherings, and social interaction.
• Digital-Physical Integration: Checkout tech, customization, content creation zones show how stores are bridging online behaviors with offline space.
• Generational Focus (Gen Z /Millennials): These initiatives respond to younger shoppers who value “experiences” and “content” as much as product.
SO, WHO’S DOING IT?
1Zara opened a flagship in Nanjing, China featuring a café called Zacaffe, and a content creation studio. (“fit check” studio where customers can shoot their own video content)
Why it works: It extends dwell time and gives shoppers reasons to visit beyond just product.
2
Jacquemus has embraced what analysts call “hyper-physical” retail: surreal installations, pop-up stores with bold décor, shareable visuals. These spaces are ephemeral, visually striking, and designed to go viral on Instagram more than they’re designed purely for checkout.
Why it works:
It taps into the younger shopper’s desire for “content” as much as shopping.
THE DATA:
3
• Nike’s “House of Innovation” concept is all about immersion: vast retail space with zones like Sneaker Lab, customization (“Nike By You”), Speed Shop, etc. The design and layout are deliberately crafted for photo moments and social sharing.
Why it works:
It shifts the store from “go buy product” to “come experience the brand”.
As outlined in a research study conducted by American Express , where a total of around 3,500 shoppers were surveyed, 65% of Gen Z consumers said retail should deliver something they can’t get online, with 79% looking for retail destinations that offer something more – from dining to leisure – than simply shopping. Around three-fifths said they treat shopping as a “day out”, combining leisure, culture and meals into one trip.
RETAIL NEWS & SALES
WHAT’S UP? WHAT’S DOWN? WHAT’S NEW?
REVOLVE ACHIEVES RECORD PROFITABILITY IN Q3 2025
Revolve Group, Inc. reported net sales of +4% year-overyear for Q3 2025, and net income grew by +97% compared to Q3 2024.
RALPH LAUREN REVENUE UP 17%
Ralph Lauren’s revenue rose 17% year-over-year to roughly $2 billion, up from $1.71 billion last year, driven by strong global demand especially in Europe and Asia.
BOOT BARN SALES INCREASE 18%
Boot Barn’s revenue rose 18.7% year-over-year to $505.4 million, up from $425.8 million last year, with same-store sales climbing 8.4% and online sales up 14%.
CROCS REPORTS Q3 PROFIT AND REVENUE DECLINE
Crocs’ revenue fell 6% year-over-year to about $996 million, with operating income down 23% from last year. The decline was driven by weaker North American demand and a sharp 21% drop in its HEYDUDE brand, partly offset by modest international growth and fewer wholesale orders.
SAKS OFF 5TH TO CLOSE LOCATIONS IN 2026
Saks OFF 5TH is closing about nine stores in 2026 as part of a strategy to focus on its most profitable, high-traffic locations and reduce costs.
The closures stem from underperforming stores and shifting consumer behavior toward online shopping, rather than a total companywide sales decline.
US HOLIDAY SALES FORCASTED TO SURPASS ONE TRILLION $ FOR FIRST TIME
The US’ National Retail Federation (NRF) has outlined its annual holiday forecast for the November and December shopping season, during which it is anticipating record figures despite notable headwinds throughout the year.
According to the organization, retail sales for the final two months of 2025 will grow between 3.7 and 4.2 percent compared to last year. As such, total spending is expected to sit between 1.01 and 1.02 trillion dollars, surpassing the trillion-dollar mark for the first time.
GAP RETURNS TO UK RETAIL MARKET WITH REFRESHED STORE CONCEPT
The retail expansion is being overseen by Next, which established a joint venture with Gap back in 2021. The partnership was set up after Gap closed its 81 UK stores, citing “market dynamics” and plans to become “digital first”.
SHEIN OPENS FIRST PHYSICAL STORE
IN PARIS…
Shein, which has previously trialed temporary pop-up stores, has opened a permanent shop on the sixth floor of Paris’s prestigious BHV department store, a historic building that has stood opposite Paris’s city hall since 1856. There are about 23 million Shein customers in France, one of its biggest European markets.
TOYS R US IS BACK FOR THE HOLIDAYS!
The toy retailer announced on Oct. 16 it will open more than 30 locations in the U.S. for the winter holiday season, including eight flagship stores and more than 20 temporary seasonal shops.
