This article was compiled with the help of generative AI based on data and analysis that is original to EMARKETER.

The retail landscape has seen significant shifts over the last five years, as many aspects of the industry have been particularly affected by the pandemic.

Retailers stop viewing the store as "a single moment and start to take a step back to ask 'What's the lifetime value of investment, and what role does the store play in driving that maximum lifetime value?'" said Ethan Chernofsky, senior vice president of marketing at Placer.ai, at last week's EMARKETER's summit on Commerce Media Trends 2025.

Here are mid-decade insights about how consumer behavior is evolving and what trends will shape future retail success discussed at the summit.

The new purpose of physical stores

Physical retail locations are no longer just transaction points but have evolved into multi-purpose assets that contribute to a brand's overall strategy. Chernofsky said that retailers need to stop viewing stores as isolated sales channels and instead see them as part of a "harmonized journey" where physical and digital elements complement each other.

"We need to start recognizing that the journey of the customer is not just online. It's this kind of harmonized journey going between the store and digital channels," he said. "How do we maximize each aspect of what each brings to the table in the most optimal way?"

This perspective shift means understanding the unique benefits that physical environments provide—benefits that digital channels cannot replicate. Touch-and-feel experiences, accurate sizing, and the confidence that comes from trying products in person remain powerful drivers for in-store visits.

What it means: Retailers must measure success beyond immediate sales transactions and consider how physical locations contribute to customer lifetime value. The most successful brands will create seamless experiences that leverage the strengths of both physical and digital channels rather than trying to force one channel to mimic the other.

New revenue opportunities within store walls

Physical retail spaces are increasingly being viewed as platforms for additional revenue streams beyond traditional product sales. Chernofsky predicts retail media networks will become "a significant piece of the advertising marketing pie" because they align with the recognition of stores as valuable touchpoints.

Other emerging opportunities include:

• Adjacent innovations: Grocery stores adding prepared foods, meal kits, and wellness products
• Premium services: High-end retailers offering styling services that can command additional fees
• Brand collaborations: Limited-time partnerships that drive urgency and store visits

What it means: The value of a store visit extends far beyond the immediate transaction. When a customer engages with a brand in-store and shares contact information, it creates opportunities for future marketing, additional purchases, and long-term loyalty. This perspective makes physical locations even more valuable as platforms for building relationships.

The lifetime value approach

For retailers considering their physical store strategy, Chernofsky recommends focusing on lifetime customer value rather than immediate sales. He suggests that physical locations should prioritize getting customers properly sized, collecting contact information, and creating positive brand experiences.

"It's really about, how do we maximize the touch to make sure that everybody gets that value? How do we create the relationship that's going to make you not just our first purchase?" he asks.

This approach will influence everything from store design to staff incentives to in-store experiences. While implementing these changes may be challenging, Chernofsky believes they will determine "who wins this book retail as we head into this decade."

Watch the full session.

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