US agentic sales to reach $1T by 2030: report

⦿ Executive Snapshot

What: The U.S. agentic commerce market is projected to reach $1 trillion by 2030.
Who: ICSC and McKinsey & Company; retailers such as Vitamin Shoppe and Tecovas.
Why it matters: The integration of AI tools in retail is reshaping consumer behavior and retail strategies, impacting the future of brick-and-mortar stores.

Sixty-eight percent of consumers have used at least one AI tool in the past three months during their shopping experience.
62% of surveyed consumers reported using AI to compare brands, models, prices, or reviews.
Nearly 40% of Gen Z and millennials prefer experiential retail, which enhances the relevance of physical stores.
The Vitamin Shoppe launched its first AI-enabled Innovation Store in NYC, utilizing the Shoppe Advisor tool for enhanced customer experience.
AI has led to a 9.6% increase in real-time sales for Tecovas when employed for inventory management.

The retail landscape is evolving rapidly due to advancements in AI, necessitating that brick-and-mortar stores adapt to stay competitive.
Historical reliance on traditional shopping methods is being challenged as consumer preferences shift towards integrated online and offline shopping experiences.

Immediate consequence includes the need for retailers to redefine the in-store experience to meet heightened consumer expectations.
Long-term, retailers must invest in AI strategies to ensure their physical stores remain relevant and profitable amid changing consumer behaviors.

Consumers express concerns regarding algorithm-driven pricing, which could hinder AI adoption in retail.
Trust issues with AI shopping assistants may affect consumer willingness to engage with AI tools in the shopping process.

Upcoming milestones include further adoption of AI tools in retail and consumer acceptance of AI-driven shopping experiences.
Future developments signaling success will include measurable improvements in sales performance linked to AI implementation in stores.