The Death of the Physical Store? Not Even Close. 🏬✨

Hi there,

Happy Sunday!

A few years ago, when we started building Brij, I kept hearing the same narrative: "Ecommerce is taking over. Brick-and-mortar is dead."

Over the last year, that narrative got a new spin. Amazon CEO Andy Jassy made headlines by predicting that AI will accelerate the decline of physical stores, suggesting that the 80-85% share of retail sales happening in-store will eventually "flip" to online [1].

The theory? AI assistants will make online shopping so effortless that physical stores will shrink into mere showrooms. Why go to the store when your AI agent already bought your favorite products for you?

But here is the reality we see every day at Brij: AI isn't going to kill the retail store. It's going to make it smarter.

Let's look at the actual data. Despite decades of "retail apocalypse" predictions, in-store sales still outpace online by four to one [2]. Even more telling? The generation that grew up entirely online is actually driving the physical retail renaissance. PwC's 2025 Holiday Outlook survey found that Gen Z's intent to shop in-store jumped 10 points year-over-year -- from 27% to 37% -- with 61% of Gen Z now preferring to discover new products in physical stores [3].

And a March 2026 Lightspeed study of 3,000 consumers found that 75% of 18-24-year-olds say in-store social spaces are important when deciding where to shop, with 83% saying physical retail environments improve their sense of connection [4]. Furthermore, 45% of all consumers still prefer to shop in-store [2].

If you are building a brand today, here is the uncomfortable truth: Physical stores are your ultimate acquisition channel.

But there is a catch. Retailers own the transaction data, and brands often don't. You might be selling millions of units in Target or Whole Foods, but you have no idea who is actually buying your product.

This is exactly where the real and virtual worlds need to blend. The most successful brands aren't choosing between brick-and-mortar and e-commerce; they are connecting them. They are turning anonymous retail demand into owned signals.

How? By digitizing the in-store experience.

When a shopper picks up your product in the aisle, that packaging is your most valuable real estate. By using strategic, dynamic QR codes on packaging or in-store displays, brands can capture zero-party and first-party data right at the shelf [5].

Here is what that looks like in practice:

• Drive the omnichannel journey: A shopper scans a code in-store to unlock a recipe, a discount, or a loyalty reward.
• Capture the signal: You turn an anonymous retail buyer into a known customer in your CRM.
• Build the feedback loop: You use that data to power your own AI models, personalize future marketing, and drive omnichannel loyalty.

As AI agents start making more decisions -- optimizing spend and personalizing journeys -- they rely entirely on feedback loops. And feedback loops are only as strong as the data feeding them. The brands that stay ahead are those that own the data behind every scan, tap, and purchase.

The physical store isn't dying. It's just waiting to be unlocked.

Best,

Kait

A few extras:

Some of my favorite brands are hiring…

Dyson - Chief of Staff

Skullcandy - Sr. Manager Retention

e.l.f. Beauty - Sr. Manager, Content & Strategy

Mammoth Brands - VP, Growth Marketing & Social Commerce

Dr. Squatch - Associate Director of Brand Marketing

BRUNT Workwear - Customer Insights Manager

I'd love to connect in person! Over the next couple of weeks, you can find me here:

Women in Retail Leadership Summit (WIRLS): April 27th-29th, Miami

POSSIBLE 2026: April 27th-29th, Miami

References:

[1] Retail Dive. "AI will accelerate the end of brick and mortar's reign: Amazon CEO."

[2] Retail TouchPoints. "AI Isn't the End of In-Store."

[3] PwC. "The Gen Z paradox: Spending less, expecting more." October 2025.

[4] Lightspeed. "Gen Z Wants More Than Products: 83% of 18-24-Year-Olds Say 'Hangout Stores' Boost Connection."

[5] FoodNavigator-USA. "Why CPG brands are rethinking QR code strategy."