Retailers Urged to Rethink Experience, Adapt to AI-driven Consumer Trends

As consumer behavior shifts toward experience-driven spending and artificial intelligence reshapes how people discover and purchase products, retailers are being urged to rethink not only what they sell, but how they sell. From the rise of “treatonomics” and values-led shopping among Generation Z to the growing influence of generative AI platforms on buying decisions, businesses face increasing pressure to differentiate and modernize their operations.

As shoppers increasingly seek meaningful experiences and turn to AI tools for recommendations, retailers are being pushed to redefine how they attract and engage customers. With “treatonomics,” values-led Gen Z spending, and AI-driven product discovery on the rise, the modern shift in consumer behavior signals a new competitive landscape for brick‑and‑mortar businesses.

In a free business seminar hosted by Araneta City for its lessees on February 20 at Gateway Mall 2, seasoned entrepreneur Amrei Dizon underscored how undifferentiated retail concepts risk fading in an evolving marketplace. Dizon, who specializes in content marketing and creative strategy, emphasized that customers now place greater value on experiences rather than mere transactions. She said retailers must articulate a clear and unique value proposition to stand out.

“If you have a unique value, you are differentiated,” Dizon said, adding that businesses offering little distinction beyond price are most vulnerable to decline.

She explained that elevating the retail experience requires intentional design across operations and customer touchpoints. Frontline staff must be trained not only in product knowledge but also in communicating the brand’s values within brief customer interactions. Physical store elements — from lighting and layout to fixtures and flooring — should reinforce the brand story and guide customers seamlessly through their journey.

Beyond store design, Dizon highlighted emerging shifts in purchasing behavior, including “treatonomics,” a trend in which consumers indulge in small luxuries for emotional uplift. Retailers can respond by incorporating accessible, feel-good items into their offerings. At the same time, she urged businesses to closely monitor Generation Z consumers, whose preference for authenticity and social responsibility is reshaping marketing strategies and product development.

Another major shift is the growing use of generative AI tools like ChatGPT for shopping and dining recommendations. This development is changing how businesses are discovered online, requiring them to optimize not only for traditional search engines but also for AI-driven platforms.

“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 visibility, AI can streamline internal processes such as inventory management. By analyzing purchasing patterns and alerting store owners when best-selling items run low, automation helps reduce missed sales opportunities and improve stock efficiency.
“Opportunity losses are massive when you run out of stock. Every empty shelf slot is a missed sale. Automation closes the gap,” she said.

Held with the support of the J. Amado Araneta Foundation (JAAF) and the Department of Trade and Industry (DTI), the session gathered business tenants across properties in Araneta City to examine emerging consumer trends and the practical applications of artificial intelligence in retail. It is part of Araneta City’s series of quarterly free learning sessions for its business tenants, aimed at equipping them with insights and practical tools to navigate an evolving and increasingly digital retail landscape.