
Stores remain dominant, even as digital, AI shopping grows
Friday, July 18, 2025
This is a summary
"The Terrible Tariffs. That’s the hot topic looming over every big industrial trade show in the land this year. Yet neither developers nor retailers seemed overly steamed about it at last week’s ICSC show in Las Vegas.
“Retailers, of course, have the tariffs on their minds, but what we’re hearing from them at the show is that they’re not pausing their expansion plans,” said Chris Maguire, chairman and CEO of SRS Real Estate Partners at his crowded booth on the show floor. "
Read the original on Chain Store Age
At ICSC Las Vegas, the resounding cry was ‘Tariffs-Schmariffs' | Chain Store Age
Image credit to Nazarizal Mohammad on Unsplash
Physical stores still dominate retail, with 77% of purchases made in-person in 2025—even as AI and e-commerce continue to grow. According to EY research, most consumers still prefer to shop for fresh food, snacks, and beverages offline, and 94% make final purchase decisions in-store after browsing online.
EY’s Jon Copestake warns retailers not to underestimate the value of brick-and-mortar. While AI tools assist shoppers, few trust them to complete purchases. Instead, stores are crucial for discovery, promotions, and building loyalty.
Forward-thinking retailers are reimagining their physical spaces with services like rentals, repairs, and immersive experiences. As Copestake says, “If you're cutting stores, you may be missing a significant trick.”
In Doral, once-busy streets and shops are suddenly quiet as fear spreads among immigrant communities following the rollback of legal protections like TPS and the CHNV parole program. The Biden-era policy had allowed over 500,000 immigrants from countries like Venezuela and Haiti to live and work legally in the U.S., but recent reversals by the Trump administration have left many without work authorization—and too afraid to leave home.
The impact is already being felt in South Florida’s construction and development sectors, where immigrants make up more than 25% of the workforce. With workplace raids increasing and employers required to use E-Verify under Florida’s SB 1718, developers may face labor shortages, project delays, and rising costs. Industry leaders warn that this could be just the beginning.
Mall traffic dipped slightly in June 2025, ending a two-month streak of growth, as shoppers pulled back following a spring surge possibly fueled by anticipated tariff hikes. Indoor malls showed the most resilience, with visits down just 0.7% year-over-year, while outlet malls saw the steepest decline at 4.4%.
Despite the June slowdown, the first half of 2025 painted a largely positive picture: indoor mall visits rose 1.8%, open-air centers grew 0.6%, and average visit duration increased across all formats—indicating stronger consumer engagement. Notably, indoor malls edged past pre-pandemic levels for the first time, up 0.3% from 2019.
The recovery continues, with open-air centers maintaining the most consistent post-COVID performance, and indoor malls closing the gap. As Placer.ai notes, the mall rebound story is still unfolding.