Every month someone comes along saying that physical retail is dead. Physical retail, print media, and email. They’ve all been buried three times, but they’re still there, strong, adaptable, and, surprisingly, more alive than ever. The truth is, what’s dead is the bad store. The soulless store. The one where you walk in, feel like you’re in the salesperson’s way, regret it before even touching the product, and swear you’ll never go back. May that one rest in peace.
Retailers that survive and thrive are those that understand that physical and digital aren’t enemies. They’re Siamese twins. Consumers are already hybrid, even without realizing it. They see things on TikTok, buy them on the app, pick them up in-store, and complain on WhatsApp. And they want all of this to work smoothly, at the same pace they scroll through their feed.
And what’s more: the comparison is now with the big boys. Those who sell TVs or perfumes aren’t just competing with the corner store. They’re competing with Mercado Livre, which delivers same-day delivery; with Magalu, which offers credit, free shipping, cashback, and content; with iFood, which delivers everything from sushi to cooking gas in 20 minutes. The new customer looks at you and thinks, “If they can do it, why can’t you?”
The bar has been raised. And it won’t be lowered just because your structure is leaner. The new benchmark is the ecosystem, not the direct competitor. Retailers that think small because they’re “local” are doomed to become irrelevant, even locally.
What we’re experiencing isn’t the end of retail; it’s the beginning of a new era. The physical store has become a stage. It’s no longer about inventory, it’s about experience. Digital has become a radar. It anticipates, recommends, delivers. And Artificial Intelligence has become the engine. Silent, precise, and tireless. It already decides which product goes in the display window, adjusts the price based on clicks and market sentiment, generates captions, creates banners, responds to customers—all in seconds. And it does all this without asking for a promotion or complaining about the air conditioning.
It’s not about replacing humans. It’s about replacing improvisation. AI doesn’t replace us; it replaces amateurism. It frees the salesperson to do what only they can: delight, listen, connect. Technology takes care of the “how.” Humans need to take care of the “why.”
But for this to happen, retailers need to stop trying to “survive the digital transformation” like someone going through an earthquake with their eyes closed. We can no longer see digital as an expense and AI as a fad. It’s infrastructure. It’s a margin driver. It’s a lever for growth. The future will be dominated not by those with the most channels, but by those who learn the fastest.
There’s no point in digitizing operations and forgetting about the experience. There’s no point in using AI if you don’t even know who you’re selling to. And, definitely, there’s no point in promising the world if the customer still waits more than 48 hours to receive an order.
The game has changed. The customer has changed. And the market won’t wait for anyone to adapt slowly. Those who understand this now will grow. Those who don’t will watch. The problem is that in retail, whoever watches it is usually the last episode.
Jean Paul Rebetez is managing partner at Gouvêa Consulting.
*This text reflects the author’s opinion and does not necessarily reflect the position of Mercado&Consumo. This text was translated with AI.
Image: Envato
