Reports of the retail store's demise have been greatly exaggerated | Fortune

"Financial pressures may be a fact of life nowadays, but there's no indication they'll be putting consumers off shopping this holiday season. Quite the opposite. Compared to this time last year, a large majority of consumers plan to spend the same or more shopping for gifts, according to Accenture's Annual Holiday Shopping Survey. That's the good news. Less encouraging? They're becoming increasingly confused by the flood of offers and promotions coming their way."

"And this year, gen AI tools provide part of the solution. By enabling curated, personalized recommendations, they can take a lot of the noise out of the online shopping journey, help to build shopper confidence and facilitate purchasing. The data backs this up. In preparation for Black Friday, 46% of US shoppers plan to use conversational or gen AI tools, with 66% of consumers having used them in the last three months (vs 39% in last year's survey)."

"But the in-store experience is just as crucial. That's because physical stores can play a key part in offsetting shoppers' stress and providing what they really want: helpful answers and expert assistance, along with the ability to handle and test products before they buy them. While gen AI can help narrow choices, stores offer in-person interaction, curated displays and a festive experience that tech can't match."

Consumers intend to spend the same or more on holiday gifts despite financial pressures, with a large majority planning similar or increased spending compared to last year. Many shoppers are increasingly confused by the flood of offers and promotions, and 85% say they may abandon purchases due to frustration or indecision. Generative AI tools can provide curated, personalized recommendations to reduce noise, increase confidence and facilitate purchasing. Usage of conversational or gen AI tools is rising, with 46% planning to use them for Black Friday and 66% having used them recently. Physical stores remain important for in-person assistance, product testing, curated displays and festive experiences, with four in ten consumers turning to stores for clarity and inspiration. Retailers are rethinking store strategies to enhance experiential value beyond convenience transactions.

Read at Fortune