Stop fighting e-commerce. Start embracing omnichannel

For years, retail real estate has framed digital commerce primarily as a threat. Much of the industry discussion still revolves around the question: How can physical retail defend itself against e-commerce? In my view, however, this is strategically wrong. The challenge is not how to fight e-commerce but how shopping malls and retail destinations can use digital channels to become more valuable. The distinction may sound subtle, but it changes almost everything.

One of the most important transformations in retail over the last decade is that customer journeys increasingly begin digitally, not with a store—even when purchases ultimately happen in physical environments. It starts with a product, a need, a problem to solve or an intention. Consumers search for a sneaker, a restaurant, a birthday gift, a pharmacy, a coffee meeting location or a service recommendation. Discovery happens online, through search engines, marketplaces, social media and increasingly through AI-supported interfaces.

This fundamentally changes the role of shopping malls. For decades, one of their key strengths was aggregation: bringing together multiple retailers in one physical destination. But digital platforms now aggregate products, convenience and customer attention on an enormous scale. Amazon, Zalando, TikTok Shop or Vinted have become highly efficient discovery systems. As a result, malls can no longer rely solely on tenant mix or location. They must become active participants within digital customer journeys.

AI will reshape retail discovery

I believe the next major transformation is already emerging through AI-driven commerce and conversational interfaces. Today’s shopping journeys still involve fragmented searches, filters and comparisons. Increasingly, however, AI agents will simplify these processes dramatically. Consumers may no longer search manually for products or stores in the same way they do today. Instead, they will ask AI systems directly where they can buy a specific product, which destination best combines shopping, gastronomy and entertainment, or how to organize several errands efficiently within a certain area.

This development will play out primarily on mobile devices. Today’s user experiences make it very difficult to use the smartphone as a true companion and advisor for local shopping. AI agents and conversational interactions with them will change this completely, driving new and significant shifts in customer behavior.

This has enormous implications for retail real estate. If AI systems become the interface between consumers and commerce, shopping malls must ensure they remain visible within these recommendation systems. Otherwise, they risk losing relevance long before consumers ever decide where to physically go. This is not primarily a marketing challenge. It is a structural and strategic challenge.

The strategic importance of aggregated tenant data

One of the most underestimated opportunities for shopping malls in this context is aggregated tenant content and data. In a digitally connected ecosystem malls may increasingly need to think more like platforms. AI systems function best when information is centralized, structured and accessible. If shopping malls can aggregate tenant-related information—products, services, inventories, opening hours, events, dining offers or loyalty benefits—they can create entirely new forms of visibility and relevance.

This does not necessarily mean building another marketplace app. In fact, many apps fail because they do not create enough meaningful value. The more important question is how shopping malls can create digital infrastructure that allows AI systems to understand what a destination offers in real time. The aggregation advantage of physical retail could become strategically relevant again. Many retailers already possess the technical infrastructure internally through APIs, inventory systems and omnichannel integrations. The question is whether shopping malls can position themselves as orchestrators within this ecosystem.

Why loyalty programs are losing relevance

Another topic the industry needs to rethink is loyalty. Many shopping malls operate loyalty programs, but in reality, consumers actively engage with only a very small number of them. Traditional voucher systems are becoming less effective because discounts and promotions are now available everywhere. The more relevant question is therefore what meaningful value a retail destination can offer beyond transactions. In the future I see more membership ecosystems. Consumers may increasingly value integrated services, convenience, parking solutions, event access, entertainment benefits or bundled experiences more than isolated discount mechanics. As an example, Amazon Prime is successful not because of one single retail advantage, but because it combines multiple forms of convenience and value. Retail destinations should think similarly.

Customer centricity is still a management challenge

The industry talks constantly about customer centricity, yet many organizations still struggle to operationalize it. In my experience, this is often less a technology problem than a mindset problem. Management teams must accept that customer behavior is changing much faster.

But omnichannel strategies cannot simply be copied from one destination to another. There is no universal blueprint. This is why experimentation becomes critical. Organizations need the ability to test ideas quickly, validate assumptions and adapt continuously. The moment innovation becomes too expensive, organizations stop experimenting.

Ultimately, omnichannel is not simply about apps, digital marketing or e-commerce integration. It is about redefining what retail destinations are. Future shopping malls may increasingly operate as connected ecosystems that combine retail, gastronomy, leisure, services, logistics and convenience—supported by data, digital infrastructure and AI-supported interfaces. The winners will probably be those who understand how physical destinations can become more relevant within increasingly digital customer journeys.