As the World Retail Congress (WRC) 2026 takes place under the motto ‘Retail’s Roadmap to 2030’, a high-profile panel of industry veterans emphasized on Tuesday that the survival of brick-and-mortar retail does not depend on the efficiency of algorithms. Rather, it’s about mastering the ‘art’ of human connection.
Executives from the German department store KaDeWe and the US brand Coach, as well as the former president of Calvin Klein Europe, argued that AI and data are essential for operational success. However, the future of ‘customer acquisition’ lies in the sensory and emotional experience of the physical store.
Beyond Prediction: The Power of Discovery
The panel began with a provocative critique of the industry’s current obsession with predictive analytics. Melanie Gallop, the former president of Calvin Klein Europe, shared an anecdote about ultra-high net worth individuals struggling with AI-curated wardrobes.
“True desire doesn’t come from prediction. It must be ignited. The greatest shopping experiences were never about giving customers what they came for. They were the stores that showed us what we wanted without knowing it,” Gallop noted.
This attitude challenges the dominant European retail strategy of hyper-personalization. For executives, the takeaway is clear: over-optimizing based on past purchases risks eliminating the ‘thrill of discovery’. This is an important factor for customer frequency in luxury centers such as Berlin’s Kurfürstendamm or London’s Bond Street.
Employees as cultural guides
The role of employees on the sales floor is fundamentally changing from simply processing transactions to emotional interaction. Richard Butler, vice president of North America stores at Coach, emphasized that 70 percent of Gen Z consumers shop at brick-and-mortar stores on a weekly basis. They are looking for experiences that ‘branded armor’ cannot provide.
To meet this demand, Coach relies on ‘co-navigation’. Sales staff provide support with ‘unboxing’ moments for social media. They also offer a ‘cultural fluency’ that goes beyond pure product knowledge.
“The sales staff have to adapt to the pace of the customers. This requires emotional intelligence. You have to know what is trending online and going viral on TikTok, but also what is happening in the overall market,” explained Butler.
The ‘third place’: retail as an urban refuge
For Timo Weber, Chief Executive Officer (CEO) of KaDeWe, the department store must develop into a ‘third place’ – a social anchor between home and work. In Berlin this manifested itself in radical experiments. For example, all ten iconic showcases were made available to artists without showing a single product.
Weber emphasized that the goal for major European retailers is for customers to “leave the store happier than when they entered it.” The transaction is a secondary result of a successful emotional interaction. KaDeWe reinforces this hospitality-focused model. It integrates yoga studios and expanded bar concepts on each floor to increase dwell time.
Balance between leadership and cultural consistency
The panel discussion concluded with a focus on the internal cultures required to sustain these elevated shopping experiences. Gallop defined the primary leadership challenge as the courage to prioritize the ‘meaningful’ over the merely ‘measurable’. She argued that while relevance can be bought through short-term campaigns. However, resonance is an earned value that is built through consistency and a refusal to pivot under quarterly pressure.
KaDeWe CEO Weber emphasized that this culture must be extended to the workforce through modernized communication. KaDeWe replaces 100-year-old briefing methods with its own app for employees. The aim is to offer employees the same level of information and connectivity that they know in their private lives. According to Weber, eliminating uncertainty among employees is a prerequisite for authentic service; Only a safe and informed team can effectively practice the ‘art’ of hospitality and make customers laugh.
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