TLDR Tech / Marketing
The Store Isn't Dead—but the Merchant Model Is
More than 7,300 US stores closed last year, the most since 2020, while store openings held just as strong, evidence that retail formats are evolving rather than physical stores disappearing. The actual weak point is the merchant model, which has retailers forecasting demand and owning inventory months before they know if it will sell. A growing number of retailers are shifting to a store-in-store setup instead, renting curated space to brands that carry their own inventory risk, the way Harrods lets luxury labels run their own sections and set their own prices. AI shopping agents are pushing the shift further, since faster demand swings raise the cost of the merchant model's forecasting bets.
Read the full story