Retailers urged to rethink strategies as AI reshapes shopping

Retailers must rethink how they sell and engage customers as consumer behavior shifts toward experience-driven spending and artificial intelligence increasingly influences purchasing decisions, an industry expert said.

During a free business seminar hosted by Araneta City for its lessees on 20 February at Gateway Mall 2, entrepreneur and marketing strategist Amrei Dizon said businesses that fail to differentiate their retail concepts risk falling behind in an evolving marketplace.

The session highlighted emerging trends such as “treatonomics,” values-driven spending among Generation Z, and the growing role of generative AI platforms in product discovery.

“If you have a unique value, you are differentiated,” Dizon said, noting that retailers relying mainly on price competition are most vulnerable to decline.

She explained that modern retail success requires businesses to design intentional customer experiences across multiple touchpoints.

Frontline staff, she said, must not only understand products but also communicate brand values effectively during short customer interactions. Store elements such as lighting, layout, fixtures and flooring should also support a clear brand identity and guide customers throughout their shopping journey.

Dizon also pointed to the rise of “treatonomics,” a consumer trend where people indulge in small luxuries to boost their mood, as an opportunity for retailers to offer accessible feel-good products.

She added that Generation Z shoppers are increasingly shaping retail strategies as they prioritize authenticity, purpose and socially responsible brands.

Another major shift, she said, is the growing reliance on generative AI platforms such as ChatGPT for product and dining recommendations, which is changing how businesses are discovered online.

“One thing that’s clear to me is you are now optimizing for AI, not people. How are you going to show up in search engines or AI engines?” Dizon said.

Beyond marketing, artificial intelligence can also improve operational efficiency, particularly in inventory management.

By analyzing purchasing patterns and alerting retailers when high-demand products are running low, automation can help prevent missed sales opportunities and improve stock management.

“Opportunity losses are massive when you run out of stock. Every empty shelf slot is a missed sale. Automation closes the gap,” she said.

The seminar, supported by the J. Amado Araneta Foundation and the Department of Trade and Industry, gathered tenants from various Araneta City properties to discuss emerging retail trends and the growing role of AI in business operations.

The session forms part of Araneta City’s quarterly learning programs aimed at helping its business tenants adapt to a rapidly evolving and increasingly digital retail environment.