Retail Newcomers: From digital first brands to European imports, new arrivals continue plant their flag in brick and mortar.
10
Retail Forward: Formulaic formats will need to be discarded to keep pace with customers.
12
A look at how stores can turn holiday stress into retail success.
STORE SPACES
14
Expansion-minded quick-service restaurant chains plot growth in 2026 and beyond. 16
Retailers face escalating electricity prices as data center growth helps drive increased demand. 18
Trending Stores: Nike’s Jordan Brand brings its World of Flight store concept to the U.S.
FINANCE
What retailers need to know about the state and local tax deduction.
20
Claire’s bankruptcy offers a cautionary tale for retailers.
Automation, AI-enabled solutions enhance the human factor in workforce management.
42
AI is driving retail transformation as emerging technologies open new pathways for innovation.
ESTATE
SHOWSCOOP
ERIKA SCHANKE on how international retail brands are reshaping the U.S. market.
GREGG KATZ On AI’s power as a retail real estate collaborator.
ANTHONY CAFARO JR. on why great malls will thrive.
ADAM PETRICK on the best of Black Fridays. PATRICK NUTT on the haves and have-nots.
JILL RENSLOW on holiday joy of unmatched scale and performance.
PAUL KURZAWA on third-party operator excellence.
MICHAEL BURDEN & AL WILLIAMS on leveraging retail disruption for strategic growth.
Mall of America’s Jill Renslow
Must-See Retail NYC Style
From an opulent French department store import to a TikTok teen favorite, New York City had more than its share of buzzy new store openings this par year.
As retailers, developers and others in the retail industry travel to Manhattan for the annual ICSC New York event in December, here are my picks for some of the city’s new must-see stores.
• Back Market: The global online retailer of verified refurbished electronics is testing brick and mortar with a pop-up, open through Dec. 21, that offers a hands-on experience. Available services include device diagnostics and cleanings, screen repairs and trade-in events. (449 Broadway)
• Dossier: Self-described as the perfume house for the “next generation,” TikTokfavorite Dossier first gained notice for its less expensive luxury-brand-inspired scents. The company’s first-ever store blends the brand’s French heritage with the laid-back, minimalist aesthetic of its Soho locale. Perfume testing stations throughout provide an immersive experience for customers while allowing Dossier to capture in-store traffic analytics in real-time, (242 Elizabeth St.)
• House of Dior New York: Designed by noted architect Peter Marino, the four-story Dior flagship is a stunner, with its interior laid out as a series of elegantly furnished rooms for different categories, accented with artwork throughout. A curving-glass installation on the stairway that connects the first three floors provides a visual journey through 75 years of the legendary brand. The fourth floor houses Dior’s first U.S. spa for facial and body treatments. Next door
is Dior Maison, the brand’s first standalone home goods shop. (23 E. 57th St.)
• LoveShack Fancy: Known for its ultra-feminine, vintage-inspired aesthetic, lifestyle and fashion brand LoveShack Fancy’s SoHo flagship is its most experiential and immersive to date. It houses the company’s full product assortment, along with its first-ever space dedicated to its home collection and its first beauty bar. The 2,300-sq.-ft. flagship is filled with the brand’s signature florals, bows and pink hues. (462 Broome St.)
• Princess Polly: Known for its affordable, on-trend fashions, this Gen Z fave’s first NYC store is also its largest location to date. The two-level 7,809-sq.-ft. flagship features more than 5,000 units of apparel, footwear and accessories. Designed with Princess Polly’s signature aesthetic in mind, the SoHo outpost is packed with Instagramable moments, a photo booth and large-scale LED screens. (514 Broadway)
• Printemps: The French luxury department store’s first U.S. outpost is located in a landmark Art Deco building in the Financial District. Spanning 55,000 sq. ft. over two floors, the opulent “destination” store blurs the lines between retail and hospitality. The design imagines Printemps as a Parisian apartment reinterpreted through the lens of New York architecture. The layout is deliberately non-linear, with ten distinct rooms that differ in mood, scale and light. (One Wall St.)
• Tm:rw: This sleek, three-level, 20,000-sq.ft. store in Times Square is designed to serve as a launchpad for more than 120 brands — from small start-ups to consumer conglomerates. It features hundreds of tech-driven products displayed in rotating concept areas across a wide array of categories that range from beauty and food to sports and gaming. The store name resembles how the word tomorrow appears on a digital clock. (220 W. 42nd St.)
Marianne Wilson mwilson@chainstoreage.com
BRAND MANAGEMENT
Vice President & Group Publisher, SPECS Chairman Gary Esposito gesposito@ensembleiq.com
EDITORIAL
Editor Marianne Wilson mwilson@ensembleiq.com
Technology Editor Dan Berthiaume dberthiaume@ensembleiq.com
Real Estate Editor Al Urbanski aurbanski@ensembleiq.com
Online Editor Zachary Russell zrussell@ensembleiq.com
ADVERTISING SALES & BUSINESS
Midwest & South Sales Manager Michael Morrissey mmorrissey@ensembleiq.com
East & West Sales Manager Lise Slaviero Groh lgroh@ensembleiq.com
Real Estate Sales Manager Al Urbanski aurbanski@ensembleiq.com
Senior Account Executive Nick Lipere NLipere@chainstoreage.com
EVENTS/MARKETING
Program Director Deena AmatoMcCoy damccoy@ensembleiq.com
Event Director Melissa Murphy mmurphy@ensembleiq.com
Production Manager Patricia Wisser pwisser@ensembleiq.com
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Brick and Mortar Newcomers
By Marianne Wilson
From digitally native retail brands to European imports, new arrivals continue to invest and plant their flag in brick and mortar.
Here’s a sampling of some of the retailers that made their first-ever U.S. debuts this year.
Gymshark
Gymshark, the cult-favorite U.K.-based workout and activewear brand. opened its first U.S. location, at Roosevelt Field shopping center in Garden City, N.Y. A four-level flagship — complete with a workout studio — is set to open by yearend in the NoHo area of Manhattan.
The approximate 4,000-sq.-ft. Roosevelt Field store will act as the blueprint for Gymshark’s future locations in U.S. malls and shopping centers. It carries the brand’s “hero” products, along with its signature destination zones for shorts and leggings. The store also features Gymshark’s iconic mannequins, which are sculpted based on real members of its community or athlete ambassador roster.
Gymshark’s expansion plans also include a deal with Dick’s Sporting Goods, which was tapped as the brand’s first U.S. wholesale partner. Select Dick’s House of Sport Locations feature fully branded Gymshark spaces.
Founded in 2012 in a garage in England, Gymshark in 2020 became only the second British company to achieve “unicorn” status (valuation of over $ 1 billion) with no prior funding. Its annual revenues now exceed $800 million.
The company entered brick and mortar in 2022. In addition to the new U.S. store, it has four locations in the U.K., and recently opened its first international locations in Dubai and Amsterdam. It has a social media following of over 18 million and customers in over 230 countries across its 14 online stores.
Perigold
Perigold, the luxury brand owned by online home furnishings giant Wayfair Inc., brought its curated selection of designer furniture, décor and lighting into a physical space for the first time with the opening of a 20,000-sq.-ft. store in Houston, followed by a 30,000 sq. ft. location in West Palm Beach, Fla.
In addition to housing products from over 150 brands, Perigold stores offer experiences not available online, such as exclusive local events, design workshops and personalized service that caters to both design enthusiasts and trade professionals. Perigold’s brick and mortar debut comes as Wayfair is also expanding its namesake brand with a large-format store concept.
Jack & Jones
A global apparel retailer is U.S.-bound. Denmark-based Jack & Jones, which operates more than 4,000 stores worldwide, will open stores at five Brookfield Properties-owned shopping centers, starting in November, at The Mall in Columbia, Columbia, Md. The move into the U.S. market follows the brand’s recent expansion in Canada.
Founded in 1999, Jack & Jones operates in more than 30 countries. It has grown from a denim-focused menswear label into a global fashion brand that includes a women’s apparel division, JJXX. The company is owned by Bestseller, a Danish family-owned affordable fashion and accessories company.
Gymshark opened its first U.S. location, at Roosevelt Field shopping center in Garden City, N.Y.
Perigold’s store in West Palm Beach, Fla., houses more than 150 luxury home brands.
Huckberry
Huckberry has opened its first permanent store, in the Georgetown section of Washington, D.C., with more on the horizon in 2026. Founded online in 2011, the brand has built a loyal following through its curated selection of rugged menswear and outdoor gear that includes heritage staples such Patagonia, house favorites and emerging brands sourced from Tokyo, Paris, NYC and beyond.
The outpost blends stylish design and in-store exclusives with immersive storytelling that includes behind-the-scenes photos from real Huckberry adventures and more.
More than a place to shop, Huckberry will also serve as platform for community events, product launches, listening parties and in-store screenings of Huckberry’s original content
Subdued
Subdued, a Rome-based teen-focused fashion retailer, has begun its U.S. expansion. The brand, which enjoys a global following, has opened its first U.S. location, at Roosevelt Field shopping center in Garden City, N.Y.
The store offers curated collections of affordable, trend-driven apparel and accessories in a boutique-style setting. Subdued, which was founded in 1995, said it was created with a clear vision: to design fashion that captures the style and personalities of teenage girls. The founders set out to reimagine the retail experience, transforming stores into welcoming spaces that foster a sense of community.
From a single store in Rome, Subdued has grown to more than 130 locations across Italy, Spain, Germany, France, the U.K., the Netherlands, Belgium, Norway, Sweden, Ireland, Switzerland, Austria, and China. In addition to its retail footprint, Subdued’s e-commerce platform also services the broader APAC region.
Rocksbox
Rocksbox has made the move to physical retail.
The lab-created diamond jewelry fashion jewelry brand, which was founded in 2012 as a direct-to-consumer subscription rental service, has opened six stores this year. (Rocksbox was acquired in 2021 by Signet Jewelers, parent company of Zales, Kay Jewelers, Jared and other banners.)
Rocksbox stores are designed to encourage experimentation and self-expression. Featuring open-concept displays, vanity mirrors, shopping trays and a central styling table, the space invites customers to try-on and stack individual pieces.
Knix
In the kickoff to its long-term expansion here, Canadian intimates and apparel brand Knix opened its first permanent U.S. store, a 1,400-sq.-ft. space in downtown Manhattan. The opening comes as Knix, which operates 14 stores across Canada, is looking to grow its reach across North America.
While the digitally native Knix is best known for its pioneering leak-proof underwear, its assortment has expanded to include bras, sleepwear, swimwear and activewear. The company’s sizing inclusivity and body-positive marketing have made it a particular favorite of younger consumers.
The SoHo store is designed to reflects Knix’s DNA of empowerment and inclusivity. It has a comfortable, modern feel. Instead of a checkout counter, purchases are completed via mobile point-of-sale systems.
Knix, which opened opened three temporary pop-ups in 2021, has been in an expansion mode since it was purchased by health and hygiene product company Essity in 2022.
Blundstone
Australian footwear brand Blundstone, founded in 1870 and best known for its iconic Chelsea boot, made its U.S. debut with a flagship in Los Angeles. Located on Sunset Boulevard in the city’s Silver Lake neighborhood, the new store marks a “significant milestone” for the brand as part of its strategic U.S retail expansion. Additional stores are planned for Portland, Ore., and Boulder, Colo., with openings later this year and into early 2026.
The Los Angeles store showcases the full Blundstone collection. The space features shelving made from reclaimed wooden bench seating salvaged from a historic stadium, a nod to the brand’s “tradition of authenticity.”
“Opening our first flagship in Los Angeles marks the beginning of an exciting new chapter for Blundstone,” said Kate Shevack, managing partner at Blundstone U.S. marketing. “The 1,274-sq.-ft. Silverlake location will showcase our brand heritage and our commitment to quality, authenticity and timeless style, values that have defined our brand for over 155 years.”
Borden
Founded in 1991 as a mail-order catalog, the British women’s fashion and lifestyle brand is making its U.S. store debut at mixed-use development Avalon, in Alpharetta, Ga. Boden’s signature use of bold colors and stripes is reflected in the design of the 2,000-sq.-ft. space. Other elements include bespoke wallpaper illustrating the company’s heritage and a gallery-style exhibition of work curated by British artists. Since launching its U.S. footprint digitally in 2002, Boden has grown strong American following.
Huckberry has built a loyal following through its curated selection of rugged menswear and outdoor gear.
Retail Forward
Flexibility, uniqueness will be among defining elements in physical stores
By Connie Gentry
During the past two decades, the role of the physical store has evolved from being mainly just a point of transaction to a touchpoint for customer engagement, branding and, most recently, community building. ChainStoreAge is celebrating its centennial year of publication with a look into how brick and mortar will continue to evolve to keep pace with consumers.
While predicting the future is always risky business, most design and retail experts agree on one point: Successful stores in the future will be those that dare to be different.
Stores will be different, but not just from their competitors. They also will be different from the formulaic constancy that has unfolded across retail portfolios to produce repetitively complacent spaces.
Since he founded Quinine Design nearly 20 years ago, Ian Johnston has seen retail stores submerge into a sea of “sameness.”
Looking to the future, he believes retail footprints will become “much more strategic and more creative.”
With a background that includes industrial design, Johnston tends to think about “how brands and people interact, and how the spaces that companies use can help them meet the goals of their businesses.”
Those goals are ever-evolving. The biggest trap in retail is creating permanent solutions for fluid realities, Quinine stated on its blog. The problem, explained Johnston, is that stores have been built to be permanent and are not able to flex to changing needs.
“It’s time to design for adaptability, not permanence,” the company stated.
Ultimately, Johnston told Chain Store Age, the store of the future will have to become as fluid as the world around it. To do this, he envisions the store as a kit
of parts, with the way in which those parts come together to address the needs and expectations of each store location being critical.
The kit entails not only transactional and merchandising displays, but also tools around “social connection, education and entertaining” that energize the shopping experience.
“The biggest thing retailers are struggling with are society’s changing needs,” Johnston said. “Change is constant, and it’s happening faster so it’s very difficult to keep up.”
For retail enterprises, it’s about choosing which kit of parts are most appropriate for a given community, he explained, focusing on who the store’s customers are and how their needs fluctuate across different dayparts and days of the week.
“For the future, we need the capability to allow retail staff to constantly be adapting their store,” Johnston said.
Flexing to the speed of change
Stores also have to address the differences between generations and be prepared for the up-and-coming ones. MG2 Advisory, the strategy and research arm of architecture and design firm MG2, is actively studying Gen Alpha and future generations, noted Advisory founder Melissa Gonzalez.
“These generations are very digitally connected, especially on social media,” she said. “There’s always been that conversation around keeping up with trends, but now we’re talking about moving at the speed of culture trends. We need more agile merchandising and store design formats that can quickly shift to the micro-cultural trends that are happening.”
According to a report released from DCDX, a research and strategy firm
focused on Gen Z, 5 billion minutes of content are watched daily on TikTok in the U.S. And six in 10 consumers say user-generated content feels like the “most genuine” form of advertising.
Bottom line: The physical store has to able to respond to virtual influences in real time — and with the understanding that every customer’s engagement in a store could become viral user-generated content.
“Community engagement is a constant conversation, and stores have to be better at flexing into gathering places, not just places to buy,” Gonzalez said.
The future is about giving consumers an opportunity for “curated experiences in the moment” so that stores become more of a service and engagement moment than only a product exchange, she added.
Most retailers and restaurants have begun to embrace the idea that the portfolio is not a “one-size-fits-all” solution and that getting closer to their customer may require smaller formats. Regardless of footprint, “experience” is the word of the future, Gonzalez advised.
Mavericks Will Defy Mediocrity
It’s going to be a fun time for rule breakers and mavericks, according to Ryan Brazelton, chief creative officer at retail brand experience agency ChangeUp.
Brazelton has always been a big believer in brands that truly understand — and have a vision of — what the word “brand” means beyond the classic elements everyone thinks about, such as the logos, packaging and advertising.
“It’s the product and the whole experience,” he said.
There was a time, Brazelton added, when a business could be successful, “even if it was mediocre.”
“That’s not okay anymore now,” he said.
In today’s constantly changing environment, stores need to have the ability to flex to changing needs.
“Now you have to be more than good — you have to be excellent. Mediocrity is being closed out by the world we live in today.”
Excellence starts with an understanding that the essence of the retail brand runs deeper than product, encompassing both experience and emotional engagement. Mavericks will be the ones who push the boundaries of experience, who defy the “mediocrity” that once defined shopping experiences.
“People don’t buy the ‘what,’” Brazelton said. “They buy the ‘why’ and they remember the ‘wow.’ Human beings are looking for a vision of who you are, a vision that they understand and feel, one that has authentic truthfulness and creates a reason to believe, with amazing experiences and products.
To quantify the idea that the “why” trumps the “what,” ChangeUp gathered over 300,000 data points from 6,000 consumers across 20 categories and compiled the information in its recently released “Experience Report.”
The study ranked the 50 top brands across retail and restaurants that they determined consistently deliver memorable, relevant experiences.
Texas grocery powerhouse H-E-B ranked No.1 overall for its balance of emotional connection, trust and local relevance.
REI, White House Black Market and Fleet Feet rounded out the top five. The report concluded that “success is no longer measured by what a brand sells but by how it makes people feel in the moment of contact.”
Imitating the experience that have led others to succeed, however, is not the answer. Such an approach reeks of artificiality, not authenticity.
“Here in the United States, because we’re always chasing that shareholder payback, [executives] have thought the key is to do whatever the other person who’s having more success than you is doing,” Brazelton said. “There might be success there, but it’s often short term.”
The better way forward, he suggests, is to adopt a rule-breaking mentality.
“For every zig or zag in the market, someone just needs to do the opposite,” Brazelton said.
Store AI: Invisible but invaluable When it comes to AI-enabled in-store shopping, the future is now. Accenture canvassed 18,000 consumers across 14 countries and found 72% of consumers regularly use GenAI and one in 10 rank it as the “single most trusted source” for purchasing decisions.
Three-quarters of consumers are ready to take it to the next level and allow AI agents to purchase on their behalf. That doesn’t mean, however, the agents are replacing living, breathing associates in stores, according to Jill Standish, global retail lead at Accenture.
Standish shared an example of how electronics retailer MediaMarkSaturn (the European equivalent of Best Buy) collaborated with Accenture, Avanade and Microsoft to develop a multi-language, voice-enabled AI agent that enabled store associates to help customers navigate a fast-evolving inventory.
The technology makes all the product information available to sales associates while they’re on the floor.
“The associates wear an earpiece with a microphone so they can have a Q&A interaction with the technology,” Standish said, noting it gives them instant access to questions from customers.
The associates appreciate that they don’t have to memorize product information, added Standish, and they see how working with the GenAI technology could be a career builder.
Fundamentally, AI is not making retail employees obsolete any more than
e-commerce ended the desire and need for physical stores.
“The physical store gives a halo effect for a brand and, especially if people are shopping digitally, it legitimizes the brand,”
Standish said. “I think the experiential side of stores will continue to grow because there are so many interesting ways to leverage a store, especially for things that cannot be done online.”
Standish likens stores to libraries that morphed into also serving as community gathering places as many people took to reading digital books.
“Stores are having their own renaissance moment by catering to what the local community needs,” she said. “The store is a destination and it’s also a pastime and a social event. For a lot of people, shopping is still fun, and we don’t want to lose that. Store experiences need to remind us that retail is fun.”
Physical stores of the future will be more about fun and flexibility, noted ChangeUp’s Brazelton. Formulaic formats will need to be discarded.
“A good store has always been about community, experience, content and certainly connection — and the reality is we can show up for various communities and various customers in multiple sizes and in multiple ways.
“That will be the future,” said Brazelton. “And the best thing you can do is write your own roadmap.”
Connie Gentry is a North Carolina-based business writer.
Every customer’s engagement in a store could become viral user-generated content.
Turning Holiday Stress Into Retail Success
By Jill Standish
While the holiday season brings festive joy to many, for others it can be a time of heightened stress, with the pressure of finding the perfect gift for friends and loved ones adding to that strain.
Rising “shopper stress” may negatively influence consumers’ purchasing decisions and could harm retail sales, according to the first of two holiday shopping surveys Accenture is conducting. More than eightin-10 (84%) consumers report that purchasing holiday gifts can be so overwhelming and frustrating that they abandon their shopping carts entirely as a result. That figure rises among younger generations, with 89% of Gen Z and 91% of millennials reporting they are likely to walk away from holiday gift purchases.
Three quarters of consumers report feeling stressed about making the right holiday gift decision, while a similar number (73%) worry they’ll regret their choice later. Meanwhile, 82% feel overwhelmed by advertising — up from 78% last year — and 77% struggle with too many options. This presents both a challenge and an opportunity for retailers as they enter their most critical time of the year.
For decades, retailers focused on offering a wide range of products and services to serve a wide range of consumer needs. However, in doing so, they may have inadvertently created decision complexity for the very consumers they are trying to serve.
The issue of shopping stress is not new. At the start of 2024, Accenture’s Consumer Pulse Survey found that just under three quarters (74%) of consumers reported walking away from purchases because they felt overwhelmed. A year on the latest findings indicate that the 2025 holiday shopping season could see that stress worsen.
Stores
Stores and malls have always been the cornerstone of holiday shopping. However, with 45% of consumers planning to visit stores specifically to see and assess
products firsthand, physical retail could stand to play an even greater role in addressing shopper stress.
Just consider how physical stores provide what overwhelmed shoppers value most — immediate answers, expert guidance, and the confidence that comes from touching, testing, and experiencing products before purchase. These spaces can be transformed from overwhelming product showcases into curated environments of discovery.
One way they may do this is to position their stores as experiential destinations — spaces where purchase hesitation transforms into confident selection through guided discovery and seasonal atmosphere. Another is to empower knowledgeable retail associates to create and deliver memory-making moments that go beyond monetary transactions.
Helping Hand From AI
Those moments can be further enhanced when customer-facing associates are equipped with AI-powered tools to enable them to access comprehensive product knowledge, inventory information and customer preferences quickly. The result? Every interaction can become a personalized consultation, where store staff to focus less time and effort on information retrieval and more on relationship building and problem solving.
The outcome is a more consultative retail experience, one where store associates become trusted advisors rather than transaction facilitators, and stores evolve from product showcases into experience destinations.
Innovative retailers are already implementing AI-enhanced strategies that seamlessly fit into existing store operations. For instance, smart inventory integration that instantly tells associates which recommended products are in stock, on display, or available for quick ordering.
In addition, there’s real-time product intelligence that provides associates immediate access to customer reviews, trending information and comparison data that enables them to provide informed recommendations on the spot — or compelling alternatives when popular items are out of stock, helping to ensure that no customer leaves empty-handed during peak shopping periods.
Golden Opportunity
The combination of stores, knowledgeable associates, enabled by technology, can work in tandem to transform holiday shopping from a stressful task into an enjoyable experience of inspiration, clarity and guidance.
While it may not be possible to completely eradicate shopping stress, there are steps retailers can take to help consumers navigate that complexity in a way that feels useful and authentic. That includes positioning themselves as solution destinations where overwhelmed shoppers find clarity, confidence, and of course, perfect gifts.
Jill Standish is global retail lead at Accenture.
Stores and malls have always been the cornerstone of holiday shopping
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Get the latest news on retailers’ expansion and remodeling programs, new store prototypes, green initiatives, facilities updates and more. Find out who’s opening stores and where. CSA Store Spaces covers retail development and facilities management inside and out.
ADVANCE DOCK LIFTS ARE
DOCK LIFTS VERSUS NOTHING:
Unloading trucks without any equipment is ver y slow and puts dock personnel at risk for shoulder, back and metatarsal injuries. Also, goods may be damaged
DOCK LIFTS VERSUS CONVEYOR UNLOADING:
Conveyor unloading is 2 to 3 times slower than using a dock lift. It leaves personnel at risk of shoulder, back and metatarsal injuries and goods are at risk.
DOCK LIFTS VERSUS TRUCK TAILGATES:
Tailgates and their maintenance are more expensive than dock lifts. Tailgates reduce truck payload and increase vehicle wear Tailgate platfor ms are smaller and do not offer handrail protection available on dock lifts, more risk for operators and cargo.
DOCK LIFTS VERSUS DOCK LEVELERS:
Dock levelers can only ser ve a limited range of truck heights (usually 8”) so they cannot ser ve all size trucks An Advance dock lift can ser vice any size truck without limitations.
On The Move
Expansion-minded quick-service restaurants plot growth in 2026 and beyond
By Marianne Wilson
Meanwhile in Europe …
The opening of international brand stores in major European cities has surged in 2025 — with U.S. retailers leading the charge. That’s according to new research by Savills, which revealed that U.S. companies (including food service and fashion) are now the main foreign group in European retail, accounting for 25% of new stores on the continent, up from 14% in 2024.
Larry Brennan, head of European retail agency at Savills, noted that for many U.S. brands, Europe is now a “top priority.”
The trend is also being driven by economic and political factors, the report noted. Recent trade tensions and declining consumer confidence in the U.S. have prompted several American companies to accelerate their expansion plans into Europe.
In addition, the trade agreement between the European Union and the United States, concluded in July, has further strengthened the dynamic. Growth is expected to continue in 2026.
“Recent trade tensions may have created some economic challenges, but they seem to have accelerated the expansion of U.S. food and retail operators across major European cities,” said Marie Hickey, director, commercial research at Savills. “We expect this trend to continue, considering the significant number of investments already made in this sector.”
Canadian retailers, who traditionally focused on the U.S. market, are now turning to European cities and already account for 4% of new international brands on the continent.
Despite economic uncertainty and softening consumer demand, the quick-service restaurant segment continues to expand amid increasing demand for convenience and digital ordering. While industry giants such as McDonald’s and Chipotle continue to drive a good part of the growth, regional chains are also busy expanding their footprints and geographical reach.
Here’s a sampling of some of the industry’s expansion-minded players.
•Paris Baguette: The bakery cafe chain has nearly 260 locations open across North America and another 500-plus in development. With plans to reach the 1,000-unit mark across the U.S. and the 100-unit mark in Canada by 2030, the company remain committed to rapid growth in key markets including Massachusetts, Rhode Island, Florida, Michigan, Ohio, Wisconsin and more.
•Shipley Donuts: The Houston-based donut chain, which was acquired by a private equity firm earlier this year, is on track to open more than 40 stores this year.
•Playa Bowls: The fast-casual superfruit bowl shop has its sights set on expansion north of the border. The company has signed a master franchise agreement with Eat Up Canada Inc. that includes plans to open more than 160 shops across the country.
•Gong cha: The Taiwan-based bubble tea chain has set a goal to surpass 500 U.S. locations by 2028. It currently operates more than 240 stores in 23 states.
•Culver’s: Known for it signature ButterBurgers and frozen custard, Culver’s is opening between 50 and 60 locations this year, with about the same number expected in 2026.
•Big Chicken: Basketball legend Shaquille O’Neal is the co-founder of this chicken chain, which, with some 350 new locations in its development pipeline, is poised to expand big time starting next year.
•Dine Brands: The company sees great potential for its new co-branded IHOP/ Applebee’s restaurant concept. It expects to have approximately 30 locations opened or under construction by year-end, with at least 50 openings in 2026. Long-term, it sees the potential to open approximately 900 dual-branded restaurants in the U.S. throughout the next decade.
•Qdoba Mexican Eats: The chain is gearing up for major growth across several Western states. It recently signed a franchise deal that calls for 50 new restaurants across Alaska, Utah, Nevada, Colorado and New Mexico.
•Bobby’s Burgers by Bobby Flay: The burger chain currently operates nine locations with more than a dozen in the pipeline. It recently signed a multi-year agreement with The Falcon Capital Group to open 65 locations across Canada.
•Dutch Bros: The fast-growing drive-thru coffee chain remains on track to open 160 new shops this year, and about 175 in 2026. With 1,081 locations as of September, it’s aiming for 2,029 locations in 2029.
•Layne’s Chicken Fingers: The chicken finger franchise recently signed a 44unit deal in its home state of Texas.
• First Watch: The California-based breakfast chain expects to open 60 locations this year. With a footprint of approximately 600 restaurants in 31 states, First Watch sees its total addressable market as 2,200 units.
•Pop-Up Bagels: With approximately 14 locations, the East Coast chain is looking to have 100 sites up and running by the end of 2027.
•Jersey Mike’s: The N.J.-based sub-sandwich chain’s aggressive strategy includes the opening of 350 to 400 new locations in 2026 and 2027. The brand is also eyeing big growth in Canada.
Electricity Price Escalation and Volatility
Data center growth among factors driving prices higher
By Todd Thurlow and Kyle Smith
While overall electricity prices have been rising at a pace that exceeds inflation, there is growing evidence that the fundamentals of supply and demand on our constrained electrical infrastructure may become significantly more pronounced in the near term — and that those fundamentals appear here to stay.
The U.S. Energy Information Administration (EIA) forecasts that wholesale electricity prices will exhibit increasing volatility due to the combination of resource supply constraints, rapidly rising electricity demand[ii] and fuel cost fluctuations. The resulting higher, more volatile prices will add significant financial pressure to businesses that rely on firm electricity supply and stable, predictable input costs.
Electricity demand is far outpacing many industry projections[iii] with many regions of the US experiencing unprecedented load growth. For example, American Electric Power (AEP), one of the largest utilities in the U.S., projects an 8.6% annual increase in its retail electric load, which will strain grid capacity. Adding to these pressures is a mounting concern over supply adequacy. PJM Interconnection, a regional transmission organization, warns of electrical capacity shortfalls as early as 2026-2027. Its recent capacity auction results reflect this new reality of rising capacity prices, rapid electrification, and slower-than-expected growth in energy generation.
From 2024 to 2025 thus far, energy prices have increased by approximately twofold while capacity prices have risen tenfold, following many years of generally low and relatively stable prices for both. These same price impacts are being felt beyond the PJM Interconnection, with MISO announcing a summer capacity pricing increase of twentyfold in its most recent capacity auction for the 2025-2026 planning period.
Drivers behind rising electricity prices
For decades, electricity demand has been relatively flat; outside of some regional extreme weather events, our utility grids have coped. These same grids, now decades older and generally poorly maintained, must deal with sharply higher (and growing) demands and from a more complicated demand profile.
These dynamics have taken us to an inflection point, where AI, domestic manufacturing, and electrification growth will compete for limited grid resources for the foreseeable future.
Other factors driving electricity prices higher and creating greater volatility in the market are:
■ Data center growth and AI innovation: These facilities require massive amounts of power to run both the IT equipment and the cooling systems that protect it. As AI adoption accelerates, energy demand will rise as well, further straining the grid and requiring
increased investments in both grid and generation resources.
■ Industrial electrification and the rise of electric vehicles (EVs): This combination has introduced new demands and demand patterns on the utility grid, including larger, unpredictable charging patterns which can lead to demand spikes during peak hours.
■ Capacity market pressures and supply constraints: As fossil fuel plants are retired, replacement energy generation sources are not coming online quickly enough to keep pace with the rapidly rising demand, leading to concerns about grid reliability and higher costs as seen in the recent PJM capacity auctions.
■ Aging grid infrastructure and maintenance costs: The U.S. utility grid was simply not built to handle the scale and sophistication of today’s energy demands. Many transmission and distribution systems are decades old and will now require major, consistent investment to catch up. These regulated costs are almost always passed along to customers[ix].
■ Federal energy policy: The recent shift in federal energy policy, which supports domestic fossil fuel projects, has created further uncertainty in the market. Emerging trade policies, such as cross-border tariffs on materials and critical energy components, may further impact electricity production, delivery, and pricing.
Increased demand from data centers powering AI and other technologies is helping to drive up electricity costs.
This combination of factors makes it unlikely that electricity prices will stabilize in the foreseeable future. Businesses that do not mitigate sustained increases in cost and volatility will ultimately purchase electricity at higher and more unpredictable rates, affecting profitability and longterm competitiveness.
Businesses do nothing at their own risk
Businesses that do nothing to adapt to today’s conditions do so at their own risk. Continuing to purchase electricity at market rates without hedging strategies or demand reduction measures will mean higher energy costs, reduced profitability, limited budget flexibility, and increased operational uncertainty.
An unreliable energy supply also introduces operational risks to organizations. Power disruptions, whether they’re due to grid congestion, extreme weather, or capacity shortages, will have an impact on business continuity.
Everything from productivity losses and service delays to broader supply chain impacts is on the table for organizations that rely entirely on the grid without any backup generation or energy storage safety nets.
Building a sustainable energy future
Although energy price increases and volatility may be here to stay, businesses have options [see sidebar]. Those who take a strategic approach to mitigating exposure to market fluctuations will position their organizations for long-term resilience. Also, many organizations likely have a long list of energy initiatives that haven’t risen to the top of the priority list; today, those same projects have a much more compelling financial case for implementation.
Taking proactive steps now means that businesses are not simply reacting to the market and accepting their fate — they’re ready for the uncertain energy future that lies ahead.
Todd Thurlow is
director of distributed energy systems
and Kyle Smith is
director
of sustainability project finance at Siemens Smart Infrastructure USA.
Proactive Strategies to Mitigate Exposure
While businesses cannot directly control electricity prices, they can control how they prepare for and respond to them.
The following is a range of proactive strategies that can help mitigate exposure to market fluctuations, enhance operational resilience, and create a competitive advantage.
• Strategic energy procurement to manage market risk: Strategic energy procurement empowers businesses to hedge against future price increases by locking in long-term, fixed-rate contracts for some or all their electricity supply or by leveraging financial instruments to manage risk.
Partnering with energy suppliers to structure procurement agreements can help shield organizations from an unpredictable market. As market price volatility increases, the value of these physical and financial instruments will also increase, but so too might the premiums associated with them.
• Energy efficiency and demand reduction to control what you can: Reducing energy consumption through energy efficiency improvement and demand reduction measures can directly affect an organization’s exposure to market price fluctuations.
Energy efficiency improvements not only cut costs but also help reduce reliance on grid-supplied power. Implementing demand-side management strategies, such as optimizing HVAC systems, installing energy-efficient lighting, and optimizing space utilization can translate into significant reductions in energy consumption.
When combined with real-time monitoring and predictive analytics, businesses can enter a cycle of continuous energy optimization. Higher electricity pricing will make the business case for energy efficiency investments increasingly compelling.
• Load management to shift demand: With load management strategies, businesses can actively manage when and how they consume power. Demand response programs incentivize companies to reduce their consumption during periods of peak demand when electricity is most expensive. Here’s where automated load management technologies can help shift demand by moving non-essential loads to off-peak hours without having an impact on operations.
• Distributed energy solutions to reduce grid dependence: Investing in distributed energy solutions allows businesses to generate and store energy independently of the utility grid.
Onsite energy generation, such as solar photovoltaics, fuel cells, and combined heat and power (CHP) systems, can offset grid electricity purchases, minimize the risk of downtime due to power outages, and have a positive impact on an organization’s carbon footprint.
Energy storage strengthens these benefits, providing greater flexibility over when power is generated and used, enabling companies to effectively store their excess energy to use during outages or periods of peak demand.
Additionally, microgrids serve as a decentralized energy system, letting organizations operate independently of the grid. This technology integrates onsite generation with storage and controls to balance load demands, reduce carbon emissions, and deliver uninterrupted power.
At the end of the day, producing your own energy can insulate your business from the coming price increases and potential capacity shortfalls.
Jordan Brand, which is part of Nike, opened its first World of Flight store in the U.S., in Philadelphia, with additional sites planned in key cities across the country. The concept, which has five global locations, is designed as a destination retail experience. The two-story, nearly 7,000-sq.-ft. Philly store showcases exclusive product collections, storytelling and more. The space is designed to serve as a tribute to the city’s rich basketball culture, while murals and memorabilia pay homage to Michael Jordan’s legacy. World of Flight will also feature community events, as well as exclusive and “high-heat” product drops. … French sports lifestyle brand Salomon opened its third U.S. store, in West Hollywood, Calif. It follows the recent opening of Salomon’s outpost in Chicago. Other locations are in the works, including Woodbury Common Premium Outlet, Woodbury, N.Y., and Williamsburg, Brooklyn. … Gymshark, the popular U.K.-based athleticwear brand, opened its first permanent U.S. location, at Roosevelt Field shopping center in Garden City, N.Y. A flagship is set to open later this year in downtown Manhattan. … Toys”R”Us, in partnership with Go! Retail Group, is on track to open 10 flagships and 20 seasonal holiday shops in the U.S. by year’s end. … REI will close its three-story flagship in New York City’s SoHo in late 2026. Located in the landmarked Puck Building, it opened amid wide fanfare in 2011. The retailer was praised
for its refurbishment of the iconic building, which honored its more-than-century-old history. … Uniqlo will open 11 new stores next year across the country, in key markets such as Boston, Seattle, Maryland and Washington D.C. The openings will include flagships in Boston and San Francisco, along with four more stores in New York City. … LoveShackFancy continues to expand its store footprint. The lifestyle and fashion brand, known for its ultra-feminine, vintage-inspired aesthetics and love of all things pink, opened its first store in the Midwest, in the Chicago suburb of Wilmette. Similar to other LoveShackFancy boutiques, it is filled with the brand’s signature florals, bows and pink hues. Other openings include The Woodlands in Woodlands, Texas, and New York City’s SoHo neighborhood.
Photo: Jordan Brand
State and Local Tax Deduction: What businesses need to know
By Mike Sanders
Under the recently signed One Big Beautiful Bill Act, the state and local tax (SALT) deduction deduction cap has increased from $10,000 to $40,000 (effective in 2025).
The cap will then rise by 1% each year through 2029 before reverting to $10,000 in 2030. This offers short-term relief to taxpayers in high-tax states like New York, California, and New Jersey, but the sunset provision keeps uncertainty alive.
For state governments, this reduces immediate pressure to cut local taxes. For businesses, especially those selling across multiple states, the bigger story is how these shifts influence consumer spending and sales tax obligations.
When households get relief from SALT caps, they gain more disposable income, which often translates into higher retail spending, which means more sales tax revenue. For businesses, this creates opportunity, but also compliance risk. Transaction volume will rise, making it critical for businesses to ensure their sales tax engines are configured correctly for every jurisdiction where they operate.
State governments rely heavily on sales tax revenue, especially those without income tax. Expanded SALT deductions could ease pressure on state legislatures to cut local tax rates, reinforcing sales tax as a primary revenue driver. Businesses should anticipate that sales tax audits will remain aggressive as states continue defending their tax bases.
SALT is often positioned as an income tax issue, but its downstream effects hit sales tax directly. Here’s why:
■ Higher consumer spending equals higher transaction volume, which means scaling compliance systems becomes critical.
■ State reliance on sales tax equalts stricter enforcement — states will continue to audit aggressively.
■ Jurisdictional differences remain and expanded SALT won’t make compliance simpler. Each state still has unique taxability rules, exemptions, and filing deadlines.
For CFOs and tax leaders, this is another reminder that sales tax automation isn’t optional. Legacy systems weren’t built for today’s complexity. But modern platforms can adapt in real time, provide rooftop-level accuracy, and integrate directly with ERP and CPQ systems to reduce error risk.
For businesses, the bigger takeaway from the SALT deduction debate is readiness. Policy shifts, whether tariffs, SALT deductions or new digital tax rules, change consumer behavior and state enforcement priorities overnight. Companies that treat sales tax as an afterthought get blindsided. Those that treat it as critical infrastructure stay ahead.
SALT’s ripple effects land in every invoice, checkout cart and tax return. For businesses, the question isn’t whether tax law will change — it’s how fast you can adapt when it does.
Mike Sanders is co-founder of CereTax.
If you accepted or processed Discover credit cards between 2007–2023, you could be eligible to get a payment from a class action settlement.
**YOU MAY BE ENTITLED TO A SETTLEMENT PAYMENT**
To receive a payment, file a claim by May 18, 2026
WHAT IS THIS ABOUT?
A proposed class action settlement has been reached in three related lawsuits. The lawsuits allege that, beginning in 2007, Discover misclassified certain Discover-issued consumer credit cards as commercial credit cards, which in turn caused merchants and others to incur excessive interchange fees. The misclassification did not impact cardholders. Discover denies the claims in the lawsuits, and the Court has not decided who is right or wrong. Instead, the proposed settlement, if approved, will resolve the lawsuits and provide benefits to Settlement Class Members.
WHO IS INCLUDED?
The Settlement Class includes all End Merchants, Merchant Acquirers, and Payment Intermediaries involved in processing or accepting a Misclassified Card Transaction during the period from January 1, 2007 through December 31, 2023. To view the full Settlement Class definition, including defined terms and excluded entities, go to www.DiscoverMerchantSettlement.com.
WHAT CAN I GET?
To receive a settlement payment, with very limited exceptions, you will need to file a claim by May 18, 2026 and/or provide additional information to the Settlement Administrator. Under the proposed settlement, Discover will make payments to eligible Settlement Class Members who submit valid claims. Discover has agreed to pay between $540 million and $1.225 billion plus interest in connection with this settlement. Your settlement payment amount will be calculated based on a variety of factors.
YOUR OTHER OPTIONS.
You can file a claim for a payment by May 18, 2026 and/or provide additional information. Alternatively, you can exclude yourself from the settlement by opting out, in which case you will receive no payment under this settlement and retain any right you may have to sue Discover about the claims in these lawsuits or related to the Misclassified Card Transactions. If you do not exclude yourself, and the Court approves the settlement, you will be bound by the Court’s orders and judgments and will release any claims against Discover in these lawsuits or related to the Misclassified Card Transactions. If you do not exclude yourself, you can object to or comment on any part of the settlement. The deadline to either exclude yourself or object to the settlement is March 25, 2026 Visit the website for information on how to exercise these options.
Claire’s Bankruptcy Offers Cautionary Tale
By Mark Landgren
Claire’s journey — from bankruptcy to its acqusition by a private equity firm — has been a rollercoaster for one of the most recognizable names in accessories.
How did such an iconic brand end up needing a strategic rescue? Many factors influenced the retailer’s bottom line, such as changing consumer habits and retail headwinds. But a more nuanced catalyst played an outsized role: Claire’s wasn’t short on innovation, it lacked a data-driven strategy.
In addition to its retail stores, Claire’s utilized a concessions-selling approach — a form of consignment selling — for its products at third-party retailers. This model enables a retailer to sell a product without purchasing the inventory upfront. Instead, the supplier is paid for its goods once it is sold, typically batched at an agreed upon time frame (i.e. daily, weekly or monthly).
Using this approach, Claire’s boosted operational cash flow so successfully that the retailer transacted early $100 million in inventory on consignment at other retailers. And while this approach impacted their operating capital, the model lacked analytical rigor, limiting its ability to extract actionable insights.
By the time Claire’s filed for bankruptcy, the retailer was operating 2,600 of its own stores, 300 franchises and selling its products in thousands of other retailers, including CVS and Walmart. Their team strategically established demand and infrastructure for its products.
Lacked Insight Into Data
But product distribution is only part of the equation for retail success. Inventory stocked without a deep understanding of what’s moving off the shelves puts business forecasting squarely in the guessing game. Like most retail/supplier relationships, Claire’s only received sales and remittance data into its product movement at the thousands of third-party stores that sold its inventory.
Without a robust internal system to analyze this sales data and track it against deliveries, the retailer lacked valuable insights to reduce shrink or prevent out-of-stocks. Merchandising, as a result, was an exercise of prediction and forecasting, rather than being tied to sales insights.
The ability to analyze this data would have empowered their team to make more strategic inventory decisions to improve
performance. For example, were headbands collecting dust on the shelves? Were purple items all the rage in East Coast stores? Data would have highlighted these trends and influenced merchandising accordingly.
Concession-based models are gaining momentum. Many luxury brands, including Burberry, Louis Vuitton and Gucci, leverage this arrangement within department stores. It is also becoming popular online in the form of e-concession models, as well as in “store within a store.”
Concession-based Model
Concession-based models have grown because there is a clear advantage for both suppliers and retailers: Retailers reduce inventory risks and suppliers gain better visibility into product performance. A mutually beneficial relationship is established where coordination gives way to efficient replenishment and stock management based on actual demand patterns.
But gaining these insights is wholly dependent on the availability of data and how quickly it can be accessed. The consignment model employed by Claire’s did not enable robust, real-time analytic tracking across sales, margins, out of stocks, and product performance at the SKU level. So while Claire’s inventory model helped free up capital and limited upfront investment in inventory, it failed to unlock data-driven insights that could influence effective product decision-making.
This example of embracing innovative models without leveraging accompanying data is a cautionary tale. Consignment selling is an effective tool for both retailers and suppliers, but its impact is stunted if it fails to capture sales data in real time.
Models like scan-based trading (SBT) can provide granular data revealing which products perform best, when, and where.
It can identify, for example, when purple items spike during LSU games or red items fly off shelves in Alabama territory.
This fosters strong retailer-supplier relationships by offering detailed insights into inventory movement down to the UPC level enabling retailers and suppliers to collaborate on pricing, product selection, and promotions.
Claire’s, however, lacked the technology to capture insights that made managing consignment items on a SKU level successful. As a business, Claire’s did not lack innovation. The retailer was clearly employing tactics that helped its bottom line and created opportunities to expand its customer base.
But without access to data, these initiatives ultimately fell flat. Now, as the brand begins a new chapter under its private equity owners, a more strategic, data-driven reassessment of its sales model could be key to unlocking sustainable growth.
There is a lesson to be learned here for all retailers: Innovation without the foundation of data is more often a gamble than a growth strategy.
Mark Landgren is senior VP, Fintech, and former CEO of Nexxus Group (acquired by Fintech).
SHOW SCOOP
ERIKA SCHANKE
on how international retail brands are reshaping the U.S. market
GREGG KATZ
On AI’s power as a retail real estate collaborator
ANTHONY CAFARO JR. on why great malls will thrive
ADAM PETRICK on the best of Black Fridays
PATRICK NUTT on the haves and have-nots
JILL RENSLOW on holiday joy of unmatched scale and performance
PAUL KURZAWA on third-party operator excellence
MICHAEL BURDEN & AL WILLIAMS on leveraging retail disruption for strategic growth
Expanding retailers in the United States face a daunting landscape: historically low availability of quality space, high construction costs, and constantly rising rents. The development downturn due to high interest rates, soaring construction costs, and shifting economic conditions has brought new retail development to a multi-decade low. The competition among brands for desirable locations is fierce
Despite this challenging environment, a new wave of international brands has arrived. Notable names include Me + Em, Gym Shark, and WatchHouse Coffee from the U.K.; Urban Revivo, Uniqlo’s GU concept, and Pop Mart from Asia, and Princess Polly and Culture Kings from Australia.
Foreign retailers continue to predominantly enter the U.S. via gateway cities such as New York, Los Angeles, and Miami. However, the pandemic-era remote work movement sparked migration into high-growth metro-suburban areas that were once secondary targets like Dallas and Phoenix.
Their entry faces significant obstacles. The sheer vastness of the U.S. and unique complexities of its many large markets present logistical hurdles. JLL has worked with numerous foreign brands to provide strategic guidance needed to secure optimal locations and avoid costly missteps.
The challenges often lie in operational details. Seemingly minor issues like loading access, permitting timelines, or signage limitations can severely impact store performance if not addressed during lease negotiations. Lease structure expertise becomes particularly crucial, as critical terms such as percentage rent thresholds, co-tenancy requirements, and termination options can make or break long-term profitability.
Established landlord relationships prove invaluable in competitive markets. Experienced partners can identify opportunities early, facilitate introductions, and leverage existing relationships to negotiate favorable terms that might otherwise be inaccessible to unknown international brands. The unpredictability of tariffs creates risks that can stall expansion, yet it also provides strategic incentive for brands to deepen their investment in the American market as a crucial hedge against global volatility.
ERIKA SCHANKE on
how international retail brands are reshaping the U.S. market
“Unpredictable tariffs give foreign brands an incentive to deepen their investment in the American market as a hedge against global volatility.”
Brand Establishment Strategy
International retailers’ successful entry into the American market relies heavily on understanding the U.S. landscape and identifying their target customer bases. Without U.S. performance histories, international retailers typically rely on wholesale partnerships and direct-to-consumer e-commerce data to understand American consumer preferences. The value proposition centers on brand establishment rather than purely transactional metrics. Prime locations serve as powerful brand-building tools, conveying credibility and strengthening brand identity in ways that secondary locations cannot. Their ability to diversify capital expenditure across global operations provides financial flexibility to secure flagship spaces that domestic retailers might find prohibitive. These new arrivals often place greater emphasis on market research and third-party demographic analyses to compensate for their lack of local operational data. They frequently prioritize locations with proven international retail success or partner with experienced local developers. Many choose to outsource substantial portions of store design and construction to local partners who understand U.S. market preferences and regulatory environments. This approach can accelerate timelines by leveraging local expertise, though it requires careful coordination to maintain brand standards across different execution teams.
JLL expects foreign retail migration to continue at a steady pace, led by brands from China, South Korea, Japan, Australia, and Europe. Social media’s influence provides direct access to customers worldwide, transforming how global brands build awareness before entering the U.S. Smart brands understand the benefits of influencers and brand collaborations. Smarter brands understand the benefits of working with an experienced partner like JLL that mitigates risk and provides strategic foresight to maximize the return on one of the most significant investments a brand will make.
Erika Schanke is the executive VP of the retail brokerage at JLL.
JLL turns prime retail spaces into opportunities for our clients. Visit us at ICSC NEW YORK at Booth #1635 .
If data is the language of modern retail real estate, geography is its grammar. Traditional analysis methods strip away the essential spatial dimension, reducing rich geographic relationships to flat spreadsheets and disconnected metrics.
Geospatial analysis changes this by visualizing data in its native geographic context, revealing patterns that remain invisible in traditional formats. Heat maps show not just where customers are, but how they move through space. Drive-time polygons reveal real accessibility.
This spatial intelligence enables retailers to tell more compelling stories about potential locations. They reveal proximity to complementary retailers; alignment with traffic flows; positioning relative to competitors, and overlap with target customer concentrations.
The “why here” question answers itself visually, making complex analyses accessible and actionable.
Add local market knowledge to the story visually and one can uncover insights that data has not caught up to: emerging neighborhoods not yet reflected in historical data, underserved areas with weak competition but strong demographics, and locations where infrastructure projects will dramatically alter accessibility.
Geography tells the story of tomorrow’s performance, not just yesterday’s results.
AI as a strategic accelerant
Artificial intelligence is rapidly transforming retail real estate analysis, compressing months of research into hours. AI can instantly process hundreds of potential sites against dozens of performance criteria. It monitors competitor activity in real-time and generates preliminary analyses at scale. However, speed without direction is merely motion. The challenge lies in framing the right questions. An AI model trained exclusively on historical performance optimizes for yesterday’s formula, potentially missing market transformation signals.
This requires investing in diverse data, incorporating traditional metrics alongside alternative sources like mobile location data and real-time transactions. It demands human experts who interpret AI insights through the lens of market knowledge.
GREGG KATZ On
AI’s power as a retail real estate collaborator
“ Artificial intelligence compresses months of research into hours,
uncovering
insights hidden in massive datasets.”
Most importantly, it requires asking better questions. Instead of “Where should we open next?” ask “Given our growth strategy, changing preferences, and emerging dynamics, which locations offer optimal near-term performance and long-term resilience?”
AI can help answer that question, but only with the right data and framing.
The integrated future
Location starts with place, and place is inherently spatial. Every data point—demographic trends, traffic patterns, competitor locations--exists in space and derives meaning from spatial relationships. A geospatial platform is the essential canvas upon which all retail real estate locational intelligence must be painted.
Local market knowledge becomes actionable when mapped. AI insights become meaningful when visualized geographically. Performance metrics become strategic when understood spatially.
Forward-thinking organizations are building data ecosystems that feed geospatial platforms with both traditional and proprietary local insights, then layer AI-powered analysis to identify patterns and generate recommendations. Critically, these organizations recognize that geography isn’t the output of analysis, it’s the input, process, and presentation. Every question begins with “where.”
The organizations that thrive will resist both extremes: neither clinging to “gut feel” nor blindly trusting algorithms. They’ll build cultures valuing quantitative rigor and qualitative insight equally (the art with the science). In retail real estate, the right location remains everything.
Those that thrive will resist both extremes: neither clinging to “gut feel” nor blindly trusting algorithms.
They’ll build cultures valuing both quantitative rigor and qualitative insight. In retail real estate, the right location remains everything.
Gregg Katz is the head of industry solutions at Esri, the Redlands, Calif.-based producer of geographic information system software.
Where Data Meets Place
In retail real estate, there is no better way to tell the story of location than through a geospatial lens.
Scan to Learn More
Retail is evolving fast, and that’s exactly where opportunity lives.
At Centennial, we see today’s changing retail landscape as a chance to do what we do best — partner with owners to reimagine what their properties can become. Every center has a story and a community it serves. Our job is to unlock the potential in both. That mindset has delivered measurable results at Liberty Center near Cincinnati and The Summit in Birmingham. At Liberty Center, more than 140,000 square feet of new leases have been signed since Centennial took on management. Visits are up double digits and specialty leasing revenue has grown more than 40%.
At The Summit, a five-year remerchandising strategy has driven a 35% increase in sales per square foot and welcomed nearly 50 first-to-state brands.
Both properties earned national recognition in Chain Store Age’s 2025 “Top Retail Center Experiences,” a reflection of how thoughtful strategy and hands-on execution create lasting value. But for us, the recognition isn’t the story. It’s proof of what’s possible when you approach every property like you own it.
That’s the Centennial difference: we bring an ownership mindset to every asset we touch, whether we hold the deed or manage it for a third party.
We believe great retail isn’t about who owns it — it’s about how it’s operated. From enclosed malls to open-air centers, our team approaches each property with curiosity, accountability, and care. We start with a clear vision, map out the strategy, and then bring it to life in ways that enhance both experience and value.
We don’t just fill vacancies; we curate energy. When a property offers experiences people genuinely want, they’ll drive past others to get there. That’s what creates longer visits, stronger sales, and more resilient assets.
Centennial’s third-party management portfolio now makes up almost 55% of our total business and is growing!
PAUL KURZAWA on third-party operator excellence
“
We believe great retail isn’t
about who owns it — it’s about how it’s operated.”
Operating across 18 states and managing more than 25 million square feet, our goal is simple: To be the partner that owners trust to maximize both potential and performance. Centennial’s strength comes from how we work:
• Hands-on leadership: Our leadership team is actively engaged with every client. Owners have direct access to decision-makers who care deeply about outcomes.
• Long-term partnerships: We build relationships that last. Many of our clients return because we earn their trust — and deliver results that matter.
• Leasing and merchandising expertise: We know how to fill space with the right mix of brands, balancing national names with distinctive local retailers.
• Integrated platform: Our fully integrated services — from leasing to marketing to operations — streamline the process and amplify results.
• Authentic culture: With a team of just over 300 employees, we remain nimble, transparent, and approachable.
Centennial’s partnership with Lincoln Property Company expands our reach across 36 markets, powering our ability to support owners unlock new value creation opportunities through densification and diversification of existing retail to other asset classes such as residential, hospitality, medical and entertainment.
Going into 2026, Centennial will continue to invest in expanding its third-party business platform.
If you are an owner looking for a fresh perspective, finding new revenue and value creation opportunities or simply wish you had a partner who’s commitment to the asset aligns more closely with their own, Centennial could very well be your next partner to unlock potential and performance!
Paul Kurzawa is the president of Dallas-based Centennial.
2 5 M S F
At Mall of America, the holidays aren’t just a shopping season, they’re a showcase of what makes physical retail more vital than ever. As the nation’s largest retail and entertainment destination, MOA continues to prove that shared experiences drive both joy and results.
2025 has been a strong year, marked by growth across key categories and a wave of new openings that reinforce the strength and appeal of the MOA brand. Both year-to-date traffic and sales are up from 2024. With continued momentum heading into the holiday season, we anticipate even stronger performance in the months ahead.
From aspirational and lifestyle brands to tech and dining, MOA will have opened nearly 25 new retailers by the end of 2025.
Recently opened stores include Pop Mart, Samsung, Skims, Alo Yoga, NBA Store, New Balance, EVRY Jewels, Love Your Melon, and Läderach.
Building on that success, highly anticipated openings including CardVault, Mavi, Primark, Mango, Miniso, and DUCK, along with incredible food offerings such as Sweetgreen, Giordano’s, Roni’s Mac Bar, OG Zaza, Sweet Crunch, and Mogouyan Noodle.
Each new addition enriches the Mall’s mix of global brands, local favorites, and bold new concepts.
The Mall’s role as a cultural hub is on full display during the holidays. With guests traveling in from across the Midwest and around the world for the full MOA experience, the property has evolved beyond shopping into a celebration of community. It’s a place where people come to find gifts but stay to make memories.
Record Black Friday attendance expected
That sense of connection starts with Black Friday, which officially kicks off the season. Last year, more than 13,000 guests entered the Mall within the first hour of opening.
JILL RENSLOW on
holiday joy of unmatched scale and performance
“ Brick-and-mortar retail succeeds when it delivers emotion, engagement, and experiences.”
Preparations are already underway for another record-setting day.
This year’s festivities include a countdown celebration before the doors open at the north entrance, along with the signature “doorbuster” giveaways featuring characters busting through a magical door to surprise lucky winners with a variety of high value prizes such as full LEGO sets, Labubus, and tickets to professional sporting events. Tens of thousands of dollars in gifts will be given away throughout the day. Additionally, the first 200 people in line will be rewarded with special surprises including a chance to win $5,000 courtesy of Spot It!
Throughout the holiday season, Mall of America delivers an exceptional guest experience through immersive décor, engaging attractions, and purposeful community partnerships. From meeting Santa at Candy Cane Institute and The Santa Experience, to activations such as Festival of Trees, which allow our MOA Community Foundation to support local organizations and families, the mall blends festive energy with meaningful impact. Our hundreds of events and brand activations also drive traffic throughout the season and reinforce our position as a leader in retail and entertainment. While MOA remains the nation’s top holiday shopping destination, its broader message resonates far beyond Minnesota. Brick-and-mortar retail succeeds when it delivers emotion, engagement, and experiences. With countless visitors expected this holiday season, Mall of America continues to set the standard for how shopping and entertainment destinations can create lasting connections with one visit, one memory, and one joyful tradition at a time.
Jill Renslow is the chief busi ness development & marketing officer of Mall of America.
Black Friday has always been about “doorbuster” deals and people lining up and knocking people over to get the TV on sale. Yes, shoppers are going to have transactional moments this year, of course, but our approach at American Dream is different. Our center’s vision of blending entertainment, attractions, retail, food and beverage, and events is what sets us apart from other centers. We want to create an experience unlike any other that draws people out of their houses and into the shopping environment on one of the busiest retail days of the year. Through this experience, we get people to stay at American Dream. Guests are coming, shopping, and spending a day with us, with dwell times that set us apart from anywhere else in the region.
That’s what we are really trying to exemplify with our Black Friday approach this year. We believe that the property is now starting to show that we are becoming the future of retail. People can shop anywhere, especially in the age of e-commerce. What American Dream offers is an opportunity for our portfolio of retailers to serve guests who have decided to visit American Dream for the experience, and that is the differentiator for us.
The center is riding high following last year’s holiday season success, and we are looking to recreate that magic again this year. Four of the top six busiest days in American Dream’s history took place during the 2024 holiday season. Last year’s Black Friday was the third busiest day in the property’s history. We anticipate another strong December that will be great for our retailers.
Skiing and surfing into Christmas
This year, American Dream will kick things off at 6 a.m., with roller coasters open (including the tallest indoor coaster in North America). There’ll be indoor skiing and surfing available for guests to enjoy, along with characters from Nickelodeon Universe wandering the center and greeting visitors.
The first 250 guests to arrive at the center will win prizes—and also get the chance to grab them inside our
ADAM PETRICK on the best of Black Fridays
“
American Dream offers experiences that people can enjoy and take part in at no cost. We tried to do even more of that on Black Friday this year. ”
signature human claw machine. Prizes include World Cup tickets, mini golf packages, theme park and water park buyouts, and much more.
Our Black Friday activations are just part of the festivities. Many of our retailers, including several luxury ones, are hosting special events and sales opportunities for guests. Our restaurant tenants will be open early as well to make sure that all guests’ needs are met.
Another focus of ours this year is catering to the various consumers who will visit the center through different day parts on Black Friday and throughout the holiday season. We have scheduled our events so that different groups such as moms with young kids or seniors have something to do at the center, allowing us to extend our operational hours.
It’s tough out there for consumers with inflation and prices rising. For us to be able to offer free events or experiences that people can enjoy and take part in at no cost is something we tried to do even more of this year. We wanted to make sure that everyone is able to have a great experience at American Dream, no matter the size of their budgets. We have a very diverse and broad set of consumers that visit our center, just as we have a very diverse and broad collection of retailers.
At American Dream, there really is something for everyone. We can offer guests one-of-a-kind experiences for no cost. Maybe a family can come in and have some fun by seeing the characters, or maybe by watching a live music set or seeing a celebrity YouTuber show up on stage.
The hallmark of our holiday season is that tens of thousands of visitors and shoppers whose backgrounds and beliefs span the globe will descend on our property to spend time with their loved ones.
Adam Petrick is the chief marketing officer of American Dream mall in East Rutherford, N.J.
ICONIC THREE DESTINATIONS
75+ MILLION ANNUAL VISITORS. 1,500+ BRANDS. 65+ ATTRACTIONS.
These aren’t just shopping centers—they’re global destinations that merge retail, entertainment, and culture under one roof. From roller coasters and aquariums to luxury flagships and emerging labels, our properties deliver next-level guest experiences and unmatched brand exposure. With venues that host concerts, premieres, and cultural moments, we offer a platform where stories come to life— and where foot traffic becomes true engagement.
Chain Store Age recently sat down with Michael Burden and Al Williams, co-heads of Gordon Brothers Real Estate Services, to discuss how retailers can grow by taking advantage of opportunities created by restructurings, off-market deals, and other forms of retail disruption.
CSA: With new development limited, how can you say this is an overlooked growth channel?
Williams: We are still largely in an environment where shovels are just not in the ground. Construction costs remain high, capital is tight, and very little new supply is being delivered. But restructurings--whether inside or outside of bankruptcy--create organized situations where leases can be assigned or transferred cleanly. Retailers can step into proven locations at favorable rents without waiting for years for new development. Yet many still only chase traditional deals and miss these moments.
CSA: Michael, what examples stand out?
Burden: Burlington leaned in early--starting with Toys “R” Us and followed by more than 50 Bed Bath & Beyond boxes--and has since added locations by stacking on sites from Joann, Conn’s, and Big Lots. Dollar Tree and Five Below were major players in Party City, with Dollar Tree also picking up a large group of 99 Cents Only Stores.
At Gordon Brothers, we acquired Big Lots and then moved hundreds of stores and the related IP to Variety Wholesalers, while cutting bulk real estate deals with Ollie’s, Tractor Supply, Aldi, and a dozen or so other brands. These were strong, well-located boxes that would have taken years to assemble through normal site selection.
CSA: You’ve mentioned out-of-court opportunities, too. How does that fit in?
Williams: Many retailers are trimming weaker stores, rightsizing their store footprint or exiting markets that no longer fit their model. Those situations create another lane for growth. Well capitalized retailers can approach those companies directly and negotiate assignments or subleases without a court process. It is faster, often less competitive,
MICHAEL BURDEN & AL WILLIAMS on leveraging retail disruption for strategic growth
and still offers tremendous value. We are seeing a lot more of that quiet retailer to retailer activity.
CSA: Michael, if it works so well, why do so many healthy retailers hesitate to take advantage of it?
Burden: Timing and perception. Court processes often move in 30 to 60 days. If you do not have underwriting models, conversion budgets, and landlord strategies ready, you will miss the window. The other factor is the mindset. Many executives assume restructurings are only for distressed buyers. In truth, the best operators use these moments to grow. They are disciplined, prepared, and move fast.
CSA: What makes this more attractive than negotiating new leases with landlords?
Williams: I am not sure “more attractive” is the right term, but we are strong advocates for this being part of every retailer’s growth strategy. We do hundreds of new stores each year the old-fashioned way, of course. The difference between this process is speed and certainty. Buyers can secure multiple sites at once--often at below market rents--with liabilities cleared by the court. Some even obtain designation rights, which give them time to choose the best locations after deeper due diligence. In a high cost, capital constrained environment, taking over existing boxes is one of the most efficient ways to expand.
CSA: What can retailers do now to be ready for the next opportunity?
Burden: Build a plan before the filing happens. Keep a target list of markets and box sizes, model conversion costs, and have your contractors and vendors lined up. You cannot start from scratch when something hits the market.
Williams: And surround yourself with experienced partners who understand how to navigate cure costs, lease assignments, and landlord discussions. With the right team, any retailer can move decisively and capture long-term value from this disruption.
CSA: Final thoughts?
Williams: Do not dismiss restructurings or portfolio exits as something that only applies to struggling companies. It is one of the most underutilized tools for growth in retail real estate.
Burden: Exactly. Space is scarce and competition is intense. The companies that prepare and act decisively will move ahead. Those who wait will be left on the sidelines.
In October, Cafaro executed a major strategic move. We acquired a super-regional mall for the first time in our history.
Grand Central Mall in Vienna/Parkersburg, W.Va., a 908,000-sq.-ft. property that opened in 1972, anchors its region with 90-plus tenants and stands as the sole enclosed mall within a 60-mile radius. We had monitored this property for two decades, always recognizing its potential. It represented the final viable mall in West Virginia that we did not already own.
The former Sears anchor recently underwent a significant redevelopment, creating space for new tenants including T.J.Maxx, HomeGoods, Ross Dress For Less, and PetSmart. We will retain the current anchor lineup. Our immediate capital plan targets critical infrastructure and aesthetic enhancements: we will shore up the roofing and asphalt and modernize lighting, flooring, and patron amenities. But most significantly, we will reinstate something many developers have abandoned—a dedicated, onsite staff focused on marketing
Activating the community hub
We entered Grand Central Mall with a deliberate game plan. The property currently holds the only movie theater within 50 miles, and we will aggressively pursue the addition of new entertainment and restaurant concepts.
It is a fallacy that our younger generations reject malls. In fact, they now view them as somewhat of a novelty. Gen Zers are actively seeking and spending money on experiences within malls, whether it be dining, entertainment, or sports bars. Our skilled marketing staffs excel at appealing to them and drawing them in.
The middle-market malls that Cafaro operates demonstrate their longevity. Analyzing Placer.ai data, we observe modest foot traffic growth every year, excluding the pandemic years. At some properties, we have generated exponential growth.
ANTHONY CAFARO JR. on
why great malls will thrive
“
Retail ultimately comes down to understanding what remains relevant to the communities it serves.”
Companies that acquired dying malls on the cheap, merely to extract every last penny, damaged the very concept of “mall.” They delivered a black eye to the entire industry. Conversely, malls with great repeat traffic, owned by serious developers who re-invest in their properties and monitor consumer trends, will continue to dominate. Retail ultimately comes down to understanding what remains relevant to the communities it serves.
Tailoring the investment
The malls we operate continue to serve as the vibrant “downtowns” of wide-swath, middle markets. We regularly study each individual market to uncover new opportunities and options that will keep them both relevant and exciting for local populaces. I would venture to say that our mid-market malls are performing as a more vital resource to customers in those marketplaces than they may have ever been.
This is not a cookie-cutter proposition. What we execute in Dubuque, Iowa, differs from the strategies we implement in Fredericksburg, Virginia. Market demands mandate different approaches. In some markets situated near larger metros, we might integrate multifamily residential or office space into the property. In less densely populated markets, that is a consideration we would likely bypass.
We continue to inject our malls with new options that cause visitors to spend more time with us. Well-located malls will not only survive but strengthen, so long as ownership commits to continuous, strategic reinvestment.
Anthony Cafaro Jr. is co-president of the Niles, Ohio-based Cafaro Company.
Over the past two years, investors have become increasingly active in buying retail real estate. Investors use many criteria to evaluate properties. Historically that started with, “Is the brand national? Is the lease corporately guaranteed? What’s their credit rating?” Now, the focus has shifted toward, “How is this retailer performing relative to its peers?”
Performance can be measured by average unit volume, profitability and share price. However, momentum and brand exuberance are hard to quantify but do move the needle when it comes to demand from real estate investors.
Let’s look at Raising Cane’s, a privately held, rapidly expanding brand that’s found tremendous success. While they don’t carry an investment grade tenant rating, the real estate they occupy is highly sought after by investors and, when sold, these properties command some of the lowest cap rates in the QSR space.
Landlords clamor to attract a company like Raising Cane’s to benefit from the traffic their stores generate. And if investors intend to sell that property, the tenancy of Raising Cane’s commands top pricing and typically takes the shortest time to sell.
Starbucks, on the other hand, is publicly traded and features an investment grade credit rating. A property leased to Starbucks will sell for a cap rate that is on average 100 basis points higher than Raising Cane’s, and it will take twice as long to transact. Liquidity and pricing premium are key attributes for landlords reviewing potential tenants.
Expansion today is a story of the “Haves” and the “Have Nots.”
Pro-growth environments
Single-tenant, net-leased properties are often referred to as “bonds backed by real estate,” a mantra linked to the passivity and hands-off ownership structure of these leases. Similar to how home prices vary based on the quality of the local school system, commercial real estate investors pay attention to the business climate of the municipalities and states where they buy properties.
PATRICK NUTT
on the haves and have-nots
“ Increased costs and strong occupier demand mean a building might be worth more empty than it is occupied under a lease with a failing brand.”
The initial purchase of a single-tenant property like a Raising Cane’s or Starbucks generally comes with the stability of a long-term lease in place, but investors have an eye for the future.
The question “If my tenant were to leave, how easy would it be to find a new tenant?” gets asked frequently. The zoning may allow a variety of uses, the building may be perfect for a host of tenants and feature a hard-to-come-by, drive-through window. But if the city or state is enacting excessive business regulations or promoting an unsustainable minimum wage, it might be tough for a landlord to attract new tenants.
Starbucks’ recent store closures, for instance, revealed a heavy concentration in California and other heavy-regulation/high-cost markets. Growth states such as Florida and Texas, meanwhile, saw limited closures. Certainly, there are a host of reasons a tenant may choose to cease operations in a given location, but it’s hard not to consider the business climate when looking for a long-term real estate investment.
The disparity of demand by real estate investors for top brands in top markets isn’t meant to say other brands will struggle to expand or that you won’t see new stores in less desired markets. It’s simply reality that those that “have” extra intangibles have another lever to pull when vying for top real estate in an ever-tight market.
The good news for those real estate investors that own property occupied by struggling retailers is that increased costs, limited vacancy, and strong occupier demand mean a building might be worth more empty than it is occupied under a dated lease with a failing brand.
Patrick Nutt is senior managing principal & co-head of national net lease at SRS Real Estate Partners.
TOP PROPS
Fairfax Corner
Fairfax, Virginia (Washington DC area)
SQUARE FOOTAGE: 525,000 SF
ASSET TYPE: Mixed-use, lifestyle center
OWNER/MANAGER: Peterson Companies
VISITS: Visitation up 12% year-over-year following the expansion
ANCHORS: Cinemark, Arhaus, REI, Apple
OTHER KEY TENANTS: bluemercury, Coastal Flats, Corepower Yoga, IKEA, Monkee’s, Ruth’s Chris Steak House, sweetgreen, Warby Parker, J.McLaughlin, King Arthur Baking Company, Vista Fairfax Corner (228 unit luxury residential building.)
EVENTS/ACTIVATIONS: Artisan markets, Plaza fitness series, Silent Sip & Read, Sip & Stroll among many others. In 2018, Peterson Companies proposed legislation signed into Virginia law allowing certain mixed-use developments to obtain a licenses permitting guests to carry alcoholic beverages on-site. Fairfax Corner was the first shopping center in the state to introduce its Sip & Stroll program.
LOCAL MARKET ADVANTAGES:
• Exceptional demographics
» 6th wealthiest county in the US (Fairfax County)
» $237,813 Average HHI (15 minute drive time)
» $2.7 million average net worth
» 69% of market hold bachelor’s degree or higher AVERAGE HOUSEHOLD INCOME:
» $237,800 Within two-to-five-mile radius
» $201,500 within15-minute drive time
RECENT RENOVATIONS: Completed a $110 Million expansion
» 36,000 SF new retail building includes Apple, expanded two-story Arhaus, sweetgreen, J.McLaughlin
» Completed Vista Fairfax Center, a 229-unit residential building with tenants above Ikea, Drybar, Warby Parker and more.
» Future development adding to density is planned.
SIGNIFICANT NEW TENANTS: Apple, Arhaus (new two story 19,000 SF space that includes 4,000 SF outdoor terrace – relocated from an existing space within the center) J.McLaughlin, sweetgreen, Drybar, Rowan, King Arthur Baking Company
WHAT’S SPECIAL ABOUT THIS CENTER?
» Recent expansion + new retail building
» Exceptional demographics & location (Northern VA, suburb of Washington DC)
» Remerchandising underway
TOP PROPS
SouthPark Mall
Strongsville, Ohio
SQUARE FOOTAGE: 1,432,627
ASSET TYPE: Enclosed Mall
OWNER/MANAGER: Spinoso Real Estate Group and Kize Capital
OCCUPIED: 95%
VISITS PER ANNUM: 7,200,000
ANCHORS: Macy’s, Dillard’s, DICK’S House of Sport, JCPenney, Cinemark, Kohls, Cleveland Clinic
OTHER KEY TENANTS: Dry Goods, JD Sport, Chico’s, Offline by Aerie, Pandora, Bath & Body Works, Francesca’s, H & M, Kid’s Empire, Abercrombie & Fitch, Hollister.
EVENTS/ACTIVATIONS: 100+ events and activations held year-round.
AVERAGE HOUSEHOLD INCOME: $138,813 AHHI in 3-mile radius
RECENT RENOVATIONS: Large parking lot, roof, and HVAC renovations. In process of renovating exterior streetscape entrance
SIGNIFICANT NEW TENANTS: Dick’s House of Sport, Activate Games, Boot Barn, Hooley House, KPOT, Kyuramen.
WHAT’S SPECIAL ABOUT THIS CENTER?
SouthPark Mall is the dominant regional shopping and entertainment destination for Northeast Ohio. Its exceptional mix of national brands, experiential anchors, and anchors include Macy’s, Dillard’s, DICK’S House of Sport, JCPenney, Cinemark, Kohl’s, and Cleveland Clinic. Lifestyle brands include Dry Goods, JD Sports, H&M, Pandora, and Offline by Aerie. Since acquiring the asset in 2021, Spinoso Real Estate Group and Kize Capital have executed a strategy to re-energize and reimagine the property’s position in the market. Recent enhancements include roof, HVAC, and parking upgrades.
Humanoid Robots
May Bring Retail
to ‘Star Wars’
They aren’t here yet, but humanoid robots are likely on the way to help retailers both in the store and the supply chain.
Robotics is one of the most exciting, promising and quickly evolving areas of retail technology. Robots are taking on an increasing number of retail roles, including tasks for which many retailers are currently struggling to find enough human employees, such as driving and warehouse work.
As more retailers are testing and developing bipedal, human-like robots to perform a variety of tasks, the industry is heading toward a “Star Wars” scenario where human-like robots routinely work alongside and potentially in place of humans.
We are certainly not at that point yet — and I don’t think C-3PO will be offering in-store translation services anytime soon. Nevertheless, humanoid robots may have a significant impact in key areas including:
Warehouse
Amazon has been testing Agility Robotics’ bipedal robot model known as “Digit,” which consists of mobile robots built in a human-like shape that can move like a person while also grasping and handling items with human-like robotic “arms.”
The initial use for Digit has been to help employees with tote recycling. That’s the repetitive process of picking up and moving empty totes once inventory has been completely picked out of them.
It is easy to see where humanoid robots could fit in well in the warehouse environment, which is dirty, dangerous and requires tasks involving heavy lifting and repetitive movement that can lead to strain and injury for human employees.
In addition, a 2024 study from AI-based staffing platform provider Instawork indicates that 43% of companies with warehouse and distribution facilities had lost revenue because of staffing shortages. In many cases, warehouse robots could actually fill vacant jobs and extend the careers of existing employees, rather than replace them.
Brick-and-mortar store
7-Eleven Japan Co. Ltd. has entered into a partnership that will result in the deployment of AI-equipped robots in its stores starting in 2029, with the ultimate goal of spreading robotic associates across the retail industry.
The Japanese operator and franchisor of 7-Eleven convenience stores in Japan is teaming with robotics company Telexistence to advance the creation of “Astra,” a humanoid robot equipped with generative AI capabilities.
By implementing Astra in real store environments, 7-Eleven and Telexistence said they aim to provide solutions that other retailers could also use to overcome “rising labor costs and workforce shortages, while redefining the customer experience.”
Many retailers also face difficulties in adequately staffing stores, so as with warehouse robots, in-store robots could actually augment and assist human workers instead of threatening their employment.
Delivery
Amazon pops up again in the humanoid retail robot conversation with reports it is building a “humanoid park” in San Francisco where it can experiment with prototype humanoid robots provided by Chinese robotics firm Unitree. The robots would deliver packages from Amazon Rivian electric delivery vans to customers’ doors.
In addition, Amazon is said to be developing agentic AI capabilities for the robots to understand and respond to natural language commands. Having humanoid robots bring packages from delivery vehicles to their destination faster and more accurately would make drivers more efficient while reducing their workload.
Dan Berthiaume dberthiaume@chainstoreage.com
Focus on Workforce Management
Automation, AI-enabled solutions enhance the human factor
By Dan Berthiaume
Retailers are leveraging cutting-edge technologies to make their employees’ lives easier while also improving their ability to manage them.
While there has been a lot of industry commentary about how automation and artificial intelligence are poised to replace employees, the fact remains that in many cases, retailers are utilizing these technologies to ensure effective management of their human workforce.
And this doesn’t just mean remotely issuing instructions or having employees push buttons. Next-gen workforce management tools actively engage workers and give them control of tasks such as scheduling, communications, skills development and customer service.
Let’s look at how Dollar Tree, Northgate Market, and Walmart are focusing on human workers with automated and AIenabled workforce management solutions.
Dollar Tree
Discount retailer Dollar Tree Inc. is automating store-level tasks and streamlining employee interactions. The retailer is deploying the Legion workforce management platform in an effort to better manage its labor budget while also increasing employee engagement across its North American fleet of stores and distribution centers.
“As a retailer with more than 9,000 stores, 18 distribution centers, and over 150,000 associates, we needed a next-generation solution that would allow us to better manage our labor budget while increasing associate engagement,” said Jocelyn Konrad, chief of Dollar Tree stores and enterprise operations. «With Legion’s support, we are enhancing our workforce operations to improve our associate workflows while delivering genuine value for our business.»
Legion will serve as Dollar Tree’s first-ever engagement platform for its hourly associates. With access to Legion’s mobile app, associates can request schedule adjustments, swap shifts,
communicate with their managers and gain access to their performance rewards and feedback through a single interface.
The platform is also designed to enhance compliance through automation and visibility tools across multiple jurisdictions, while delivering advanced demand forecasting to optimize labor utilization and ensure appropriate staffing levels.
Northgate Market
Southern California supermarket chain Northgate Market is streamlining labor planning and operational intelligence across its enterprise. The retailer has adopted the complete AI-based Logile Connected Workforce Platform across its enterprise.
The specialty Latino grocer began implementing Logile labor planning and workforce market solutions several years ago, when it first partnered with the vendor to improve operational efficiency through labor planning and workforce management.
Over the years, Northgate Market says the collaboration has driven measurable performance results, including a 23% improvement in productivity, 25% reduction in overtime and a 31% decrease in full-time turnover, laying the foundation for deeper strategic alignment.
“Our relationship with Logile has been built on trust, innovation and a shared vision for excellence,” said Tom Herman, chief strategy officer at parent company Northgate González Market. “As we continue modernizing our operations, Logile remains a key partner in helping us unify our systems, optimize our labor, and elevate food safety and forecasting.”
As part of the expanded deployment, Northgate Market will replace 12 to 14 disparate forecasting tools with Logile’s One Store One Forecast solution to create a single, unified forecasting approach across all locations.
The grocer will also roll out the full suite of Logile’s fresh item and inventory management solutions, including Thermal Intelligence and food safety, across stores, facilities and production hubs.
In addition, Northgate Market will extend its existing workforce management functionality to distribution centers, building on earlier in-store success with scheduling, task management and time and attendance solutions. The retailer will continue leveraging Logile labor planning and operational intelligence tools.
Walmart
Beginning in 2026, eligible Walmart employees in the U.S. will have access to cutting-edge AI training through a collaboration with OpenAI, the company behind the ChatGPT generative AI model. The discounter is launching a new OpenAI certifications program through its Walmart Academy educational program which trains store employees and managers.
Walmart is also using AI to help applicants prepare for job interviews and paying for associates to move into technician roles. Its recently-launched AI Interview Coach tool simulates a realistic Walmart interview.
The retailer is currently piloting the tool with associates. If it performs as expected, Walmart will offer the solution to every applicant, both internal and external.
The discount giant also recently unveiled a skills translator tool that lets veterans upload their resumes, which are then translated into professional skills that align with its needs.
In addition, an interactive job simulations solution gives veterans the ability to virtually try out their skills in real-life scenarios and see what it’s like working in a corporate environment.
Walmart trains employees with AI
AI Driving Retail Transformation
Emerging AI technologies opening new avenues for innovation
By Paul Tepfenhart
The retail industry is in a highstakes transformation. Today’s consumers expect instant, hyper-personalized experiences at every touchpoint, raising the bar for what’s possible.
Artificial intelligence isn’t just part of the solution — it’s reshaping the entire value chain, making retailers rethink their strategies. The tangible benefits are already clear. According to Google’s recent “The ROI of Gen AI” report, 74% of enterprises using gen AI report positive return on investment.
AI is transforming every part of the retail experience. From product discovery to post-purchase service, emerging technologies like multi-modal AI, AI agents, assistive search and curated experiences are opening new avenues for innovation. Retailers can now enhance content creation, streamline returns, and deliver smarter, real-time support. Let’s dig into how.
Personalization with AI agents
At the heart of this transformation is the rise of intelligent AI agents. Unlike earlier automation, these agents engage customers with tailored interactions that adapt in real time. Retailers face immense pressure to meet precise consumer needs, as information overload and too many options can cause decision paralysis.
AI is now fundamentally reshaping how consumers browse and buy, making dynamic personalization essential. Retailers must adapt their entire customer engagement strategy to this new reality, moving beyond generic offerings.
We’re seeing clear stages in AI’s evolution, including:
◆ Initial chatbox experiences: Basic, task-specific tools for simple service needs;
◆ Today’s AI shopping advisors and agents: Complex use cases like personalized shopping assistance, data analysis, creative generation, and in-store campaigns using multi-modal inputs; and
◆ Future AI-powered workflows: Sophisticated tools for managing dynamic pricing, supply chains, and full product lifecycles — powered by agentic workflows.
Retailers that embrace AI to meet consumers’ new expectations are seeing measurable business growth. For example, Lowe’s has incorporated innovative search features into its e-commerce site and mobile app to improve product discovery for visually oriented customers. The home improvement retailer now enables users to find visually similar items using image-based search tools. It has created a significant financial impact for Lowe’s, including $15.8 million in incremental annualized revenue for home decor items and increases in conversion rates on both desktop and mobile platforms.
Scaling
AI agent adoption across the enterprise
To fully unlock AI’s value, retailers must build and scale multi-agent systems. While many have launched promising AI initiatives, most remain siloed, limited to pilots, or hampered by concerns around user quality, safety and operational risk. Seamless, end-to-end execution is still the exception, not the norm.
New platforms are emerging to close this gap. They provide centralized access to a variety of agents, enabling employees, regardless of technical skill, to deploy AI across functions. These systems support the integration of first-party, second-party and third-party agents, with a strong emphasis on production readiness and measurable business value.
In fact, according to the Google study cited earlier, 45% of organizations that report improved productivity have seen employee productivity double or more as a result of gen AI, a testament to its transformative power beyond the customer-facing frontlines.
All of this demonstrates that companies can then take the next step of deploying AI agents to act on their findings and decisions across various functions, including HR, supply chain, customer service and marketing.
Driving sustainable and efficient operations via AI
Fast, personalized customer experiences depend on strong data and system speed. AI must be supported by robust data infrastructure to deliver. This requires retailers to adopt cloud-based tools and unify their data architecture around the customer.
Equally important is interoperability, enabling agents to communicate across platforms and data silos. New protocols make this possible, allowing collaborative AI systems to address complex business needs.
Leading platforms also include grounding techniques and built-in governance for privacy, security, and compliance, ensuring responsible deployment at scale. This rapid pace is why, per the recent Google study, 84% of organizations are able to move a gen AI use case from idea to production in less than six months, enabling them to quickly see value and respond to market shifts.
Retail’s next leaders won’t just use AI. They’ll architect around it. Technologies such as LLMs, generative AI and intelligent agents are reshaping everything from merchandising to logistics.
And early adopters are already seeing real returns, with some reporting up to 6% revenue growth tied directly to generative AI.
Those who align today’s innovations with long-term goals for customer experience, operational agility, and growth will define the next era of retail.
Paul Tepfenhart is global director of retail at Google.
