Retail Isn’t Dead

Written by Uma Mukhopadhyay (CAS & W ‘28), Edited by Cathy Sui (W’29)

An estimated 186.9 million people were expected to shop during Thanksgiving weekend through Cyber Monday according to the National Retail Foundation. Though the “retail apocalypse”—the mass closures of physical retail locations beginning in the 2010s—continues in 2025, physical retail remains a central part of the shopping experience. For younger consumers, however, navigating rising prices and abundant choice has created a disconnect from traditional retail formats, demanding more intentional value from where and how they shop.

This disconnect has pushed retailers to rethink the purpose of the brick-and-mortar store. As Deloitte notes in its analysis of the retail evolution, the era of uniform store formats is largely over. Stores now operate within a diversified “network strategy,” where each location assumes a distinct role: efficient sales engines, fulfillment hubs for online orders, or brand-oriented experiential spaces designed to shape consumer perception. This shift reflects that profitability no longer depends solely on product movement; rather, it hinges on the strategic purpose each square footage of the physical location serves within its ecosystem.

Changing consumer spending patterns have amplified these pressures. J.P. Morgan’s holiday outlook shows that shoppers expect to spend more in absolute dollars during peak seasons—but not necessarily to purchase more items. Retail Brew has echoed this shift in consumer expectations, noting that inflation and cost-of-living concerns are driving more deliberate, comparison-heavy decision-making among consumers. This creates the shopper who is value-conscious, expectation-driven, and significantly, more demanding of a compelling reason to choose a particular retailer. The result of this shift in the consumer is a competitive environment where traditional loyalty erodes unless brand narrative and store experience feel relevant.

Digital channels have expanded opportunities for retail. Technology has become  essential in understanding consumers’ preferences, the backbone of the shifting retail model. AI-powered forecasting, personalization, and inventory management now shape how retailers anticipate demand and reduce operational waste. Digitization within stores, such as augmented try-ons and responsive signage, bridges the gap  between the online experience and in-person interaction. Notably, retailers who have invested heavily in software capabilities have gained three times the returns of nondigital leaders, according to McKinsey.
It’s important to note that these opportunities for growth unfold alongside constraints. Economic uncertainty, capital-intensive technology upgrades, labor shortages, and evolving supply-chain logistics—due to the rise of e-commerce—create pressure across every tier of the industry. But the direction of the retail industry is clear: this “apocalypse” is becoming recalibration. Retail leaders are aligning their physical footprints with the expectations of a more discerning consumer. Retailers are positioning themselves for success by embracing advancements in the digitization of the shopping experience in alignment with shifting consumer expectations.