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Brands Briefing: As AI reshapes retail, brands are investing even more in stores

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Brands Briefing: As AI reshapes retail, brands are investing even more in stores

For all the hype around digital and AI shopping, the brick-and-mortar business is still standing strong heading into 2027.

Today, Americans spend 81% of their retail dollars in physical stores, per Capital One Shopping. And, this holiday season, physical stores are expected to capture the largest single share of spending. Teneo’s 2026 U.S. Holiday Spending Outlook found that shoppers expect to spend 35% of their holiday budget in brick-and-mortar stores. Nearly half (44%) indicated that they would go to a physical store for last-minute gifts. ICSC’s Holiday Intentions Survey found that 93% of U.S. adults (and 97% of Gen Z) expect to visit a store during the holidays to purchase an item or pick up an online order.

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