Physical stores continue to dominate retail sales, and developers are responding by opening thousands of net-new locations nationwide, signaling sustained confidence in the sector. But a new dividing line is forming: a recent update from Colliers finds that those who invest in technology are set to rake in three times the profits over those who aren't. This includes further developments in e-commerce and in-store fulfillment, and has extended to artificial intelligence (AI) as consumers incorporate the technology into their buying decisions.
"The store of tomorrow is being designed today," says Anjee Solanki, Colliers' national director of retail services and practice groups. "New builds require higher technology density from day one, and landlords who adapt their metrics and property designs now will hold a lasting advantage."
Retail Store Expands, Complements E-commerce
Colliers' reports that 85.1% of US retail sales still flow through stores, while 71% of retailers are growing their footprints in 2026.
According to Nicole Larson, the company's senior manager of national retail research, consumers are self-selecting when shopping in stores, and the ability to touch products, discover new items, and interact directly with brands in real time continues to drive in-store demand.
"Physical stores remain the foundation of retail and not just for transactions, but for fulfillment, brand engagement, and customer acquisition," says Larson.
And though e-commerce remains strong, one in four online orders is now fulfilled through a physical store. "Buy online, pick up in store" purchases now account for 8.9% of total retail revenue, an increase of 71% year-over-year in spite of only 18% of retailers having fully optimized it.
Technology Remains Dominant, as AI Reshapes Consumer Behavior
Store-level IT remains a cornerstone of retail store development, as it now exceeds enterprise-wide IT spend, signaling a shift toward front-line experience and operational capability. Over the past five years, top retail performers increased IT spending by 52%, compared to just 13% among lower-performing peers.
The result is a widening performance gap, with leaders expected to grow profits at nearly three times the rate of competitors in 2026
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"Leading retailers treat technology as a growth engine, not a cost center," notes Solanki.
However, consumer adoption of AI is accelerating faster than many retailers anticipated. While only 19% of consumers currently use AI agents for brand interactions, that figure is expected to reach 46% by the end of 2026.
Nearly 40% of major US retailers have already implemented AI shopping assistants, a clear signal that competitive differentiation is accelerating, says Larson, adding that retailers see AI as essential, provided it's easily explainable, secure, and delivers measurable outcomes.
"The path to purchase is being rewritten in real time, and retailers without a credible AI presence risk losing the sale before a consumer ever reaches a store or the checkout counter," says Larson.
For landlords, the technology transformation of retail real estate carries direct implications for asset value. Ancillary income streams enabled by emerging technology are becoming significant contributors to net operating income, notes Solanki.
"Every square inch is so valuable and the landlords who treat their properties as technology-enabled platforms, not just leased space, will be the ones who prove it on their balance sheets."
Visit Colliers at ICSC Las Vegas, South Hall Upper booth 4009Q.
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