The shopping area of ​​the future: From local supply to a phenomenal experience platform

Over the last 25 years, digital transformation has largely revolved around individual businesses. It was about web shops, apps, loyalty programs and visibility on the internet and in the shopping street. However, with the rapid emergence of advanced artificial intelligence (AI) with autonomous, agentic services, the focus is shifting to the entire shopping space.

Platforms are evolving into super platforms with AI super apps. Personal AI assistants and virtual shoppers are increasingly taking over purchasing decisions and actions. If consumers soon no longer have to search, compare, select and have them delivered, why should they still come to the shopping street? What does the shopping area of ​​the future have to offer in order to keep the physical presence valuable?

The new entry in the digital sector: agentic AI

In the British newspaper The Economist I read how a reporter in Shanghai used an AI super app, i.e. an agentic app, to have a coffee delivered to his office. With the simple command “Bring me a special coffee,” the agentic app began to work independently. She searched for a coffee bar online, selected a special blend and hired a courier service to deliver it to his address.

Agentic AI consists of AI systems that not only think and respond, but can also act independently within defined framework conditions. Previously, consumers had to enter “sustainable trench coat beige size M” into a search engine themselves. They then manually searched dozens of web shops for the right fit and price. In the future, you simply tell your AI agent that you need a trench coat that fits your style and budget next week. Your AI agent then scans environmental labels and checks real-time inventory at your favorite fashion stores. He negotiates a regular customer discount, pays for the trench coat autonomously and has it delivered to his home. You don’t have to worry about anything else.

A real race has now broken out between the big tech platforms in China and America. The goal is a future where agentic AI helps consumers manage all the practicalities of their lives, from booking flights to organizing emails. This means everyone gets their own virtual personal assistant and shopper.

The great convenience revolution

This shifts the entire process of selecting, purchasing and delivering products and services into the realm of super platforms. These offer us complete convenience with their AI super apps. This immense shift, also called ‘The Big Convenience Shift’, brings together individual actions such as advertising, sales and transportation from different service sectors. They are integrated into a single convenient transaction on a few major convenience platforms. The digital economy that we have only just become accustomed to is now itself being further disrupted. This happens with greater reach and deeper penetration into our supply chains. This has a significant impact on large parts of our consumer economy, including our shopping areas.

Take control of your shopping area

What can you as a fashion entrepreneur, retailer, policymaker, real estate developer and city manager do to prevent ‘The Big Convenience Shift’ from leaving big gaps in your shopping centers? We have already seen some shifts in our retail landscape over the last few decades, including towards more dining and residential functions. With the advent of agentic AI, the traditional role of a shopping area as a local utility will continue to diminish.

However, shopping areas, particularly in city centers, have also become a local heritage site. They have an indispensable influence on the social cohesion and quality of life of a city or village. It is therefore time to develop a plan together with a clear vision of what your shopping area stands for today and in the future. According to a recent study by ICSC and McKinsey & Company, store visits are expected to become less frequent but more targeted.

This also applies to visiting a shopping area. More than ever, a visit will have two distinct goals: convenience or entertainment. The former is about amenities aimed at immediate satisfaction of needs, even faster than through an AI agent. An example is the McDrive for a quick snack while driving. Entertainment is mainly about offers that are designed to give visitors such a pleasant time that they invest as much time, money and energy as possible.

The shopping area is then designed as an experience platform. Both digital and physical infrastructure are used to attract and network visitors. It is important to combine a good mix of gastronomy, retail, wellness, art, design, culture and entertainment with a story that should delight visitors. Of course, all of this must also fit the identity you want to convey as a shopping area.

A good example from the international retail landscape illustrates this: The city of Singapore is taking the initiative with an eye to the future. To protect the city’s historic shopping heritage, the ‘Heritage Business Scheme’ was launched. This program is intended to provide a platform for traditional businesses. The aim is to highlight the value of the stores in the eyes of the local and international public so that they do not disappear in the shadow of large chains and busy TikTok queues.

A recent pilot project selected 42 stores that are ‘deeply interwoven into the cultural landscape’ of the city. These are usually businesses in which traditional crafts and customs are rooted and unique to the location. Participants receive support with business management and digitalization. They are encouraged to use the new digital tools to their advantage, for example through a marketing package to increase their reach on social media.

After a few months, the first results are already promising, with some stores reporting a strong increase in sales. In addition, the number of visitors has also increased. According to the committee of this plan, many contact moments have been created in order to pass on what could be called a ‘living heritage’.

We can also develop similar plans in the Dutch shopping areas to future-proof our local shopping heritage. It is important that all parties involved come together. You should look at both content and political aspects with an open mind.

For inspiration, an overview of some tips:

Number one – content aspects: A good starting point is the identity and stories of the local community in which the shopping area is located. Start with the big ‘why’ question: Why should visitors want to come? This quickly leads to target group analysis. Numerous studies show that younger generations such as Gen Z and Millennials are very positive about experiential consumption. In fact, their consumption, especially that of Gen Z, often takes place through experiences. The feeling of discovery plays a central role. Given the largest wealth transfer of the century, it is important to recognize that these groups have rapidly increasing purchasing power.

Following on from their experiences and appreciation, the ‘what’ question follows: What will you offer them? The safest bet is a mix of traditional heritage and new, experimental forms to encourage much-needed innovation. When implementing the plan, starting from the ‘how’ question, it is crucial to focus on the visual appearance of the area. This includes visual appeal on social media, authenticity, healthy sensory stimuli and, most importantly, human contact.

Number two – Political aspects: The government also plays an active role in such a plan. It’s about protecting different interests and at the same time creating space for new forms and concepts in the physical shopping area in response to the digital convenience shift. Mixed retail formats, for example, are currently still encountering unclear and arbitrary regulations.

With a shopping area as a phenomenal experience platform, we not only keep our meeting places alive, but also our thriving shopping heritage.