If a customer can buy the same product in London, Paris and Shanghai, what motivates them to walk into the store while abroad? The answer lies in hyper-local storytelling.

physical retail is entering a new phase — one defined less by experiential spectacle and more by service, relevance and emotional resonance.

For consumers, the best AI may be the kind they never notice — powering availability, speed and relevance, while leaving the emotional connection firmly in human hands.

While artificial intelligence is transforming retail operations, experts agree that its role in luxury should remain largely invisible to the customer.

e. “Another way to keep the store experience feeling new is to embrace what’s happening in your city,” Andelman continues. “If it’s the US Open, a marathon, or Milan Design Week, it’s great to be reactive and show you’re part of your city.”

At Bergdorf Goodman, Linda’s shop-in-shop, curated by fashion director Linda Fargo, offers unique products not offered anywhere else in the store. “Creating that unique shopping experience by a fashion expert really connects the store to the customer,” says Burke, noting that customers from across the US and Europe travel to Bergdorf Goodman just... See more

“I often find that many physical retail spaces focus either on form or function. They either look beautifully impractical, or practically ugly,”

By 2026, experts expect more brands to adopt a truly multi-purpose retail model, where stores function as social venues, wellness spaces or cultural hubs.

But in 2026, the reason they’ll stay is because of a sales associate who remembers their upcoming trips; a curation that feels distinct, with limited-edition capsules from a tight list of brand partners; a comfortable seating area; a new installation from a local artist; or a coffee shop-slash-smoothie bar to relax and catch up with your shopping... See more