For years, the rise of e-commerce raised questions about the future of the physical store. That debate has evolved. Consumers still value the speed and convenience of online shopping, but stores continue to play an important role in product discovery, brand engagement, and social activity. However, shoppers now expect more from the trip.
A 2026 report from ICSC and McKinsey & Company, based on a survey of more than 3,000 U.S. consumers, found that physical stores are increasingly serving two distinct purposes: convenience and discovery. For convenience-driven visits, shoppers want dependable inventory, easy navigation, and a fast checkout process. For discovery-driven visits, they are more interested in engaging environments, personal service, and experiences that are difficult to recreate online. More than 40% of Gen Z and millennial respondents said experiential retail makes them more likely to shop with a retailer.
Experience Does Not Have to Be Elaborate
Experiential retail is often associated with major installations, events, or technology-heavy concepts. In practice, many of the most effective experiences are much simpler.
A store can add value through product demonstrations, knowledgeable employees, comfortable seating, localized merchandise, food and beverage offerings, classes, customization, or opportunities to test products before purchasing. The goal is not to turn every location into an attraction. It is to make the visit feel worthwhile.
That also means getting the basics right. The same ICSC and McKinsey research found that 37% of consumers cited in-stock reliability as a top driver. An attractive store may encourage someone to walk in, but poor inventory management or a frustrating checkout process can quickly undermine the experience.
Retail Visits Are Becoming More Social
Physical retail is also benefiting from the way consumers combine shopping with dining, entertainment, and services. ICSC’s 2025 post-holiday survey found that more than nine in 10 holiday shoppers made purchases in physical stores, while 75% visited a mall or shopping center. Many of those visits also included spending on dining, entertainment, and personal care services.
For landlords and developers, that pattern places greater importance on tenant mix and placemaking. A well-positioned retail property can serve as a broader destination, giving consumers multiple reasons to visit in a single trip. Restaurants, fitness concepts, beauty services, entertainment uses, and gathering areas can support longer stays and more frequent visits when they are thoughtfully integrated.
Technology Should Make the Visit Easier
Consumers may want a richer in-store experience, but they also bring digital expectations with them. They are used to checking inventory, comparing prices, reading reviews, and finding product information before they arrive.
Retailers can respond by using technology to remove friction rather than simply add another feature. Mobile checkout, accurate online inventory, buy-online-pick-up-in-store programs, and tools that help employees answer questions can make the physical visit more efficient.
Customer experience also has a direct effect on loyalty. PwC’s 2025 Customer Experience Survey found that 29% of consumers had stopped buying from a brand because of a poor experience, whether online or in person. That makes consistency across channels increasingly important.
Creating Stores Worth Visiting
The strongest physical retail concepts are not trying to replicate e-commerce. They are giving consumers a clear reason to leave home while still delivering the convenience they have come to expect.
For retailers, that means defining what each location should do best and aligning the space, staff, and technology around that purpose. For owners and developers, it means creating environments that support a complementary mix of shopping, dining, services, and leisure.
The long-term opportunity lies in making physical retail useful, engaging, and easy to navigate. Stores that combine strong fundamentals with a distinct sense of place will be better positioned to earn repeat visits and remain relevant as consumer expectations continue to change.
