ICSC New York | Commercial retail is back, but it’s not the retail you remember

For years, retail has been framed as an industry in recovery. At ICSC New York, it felt more accurate to describe it as an industry that has already moved on.

The conversations weren’t about survival, footfall panic, or digital disruption. They were about execution, data, and capital discipline.

Retail is back — but not as a sentimental revival. This is a more professional, more analytical, and less forgiving version of the sector.

What emerged from conversations across the show floor was not a victory lap, but a recalibration. Retail is back, yes — but it’s a sharper, more disciplined, and far more data-led version than before.

Physical locations now function simultaneously as fulfilment hubs, customer acquisition engines, brand billboards, and loyalty drivers. Retailers with a strong physical footprint are consistently outperforming those without one, precisely because stores underpin omnichannel economics rather than dilute them.

The takeaway was blunt: if a retailer has figured out its brick-and-mortar strategy, the rest of the model works better. If it hasn’t, digital alone is no longer enough.

Real estate capital is returning… selectively

Another recurring theme was the return of investor interest. After several years of uncertainty — much of it driven by challenges in the office sector — capital is flowing back into retail, particularly necessity-led assets.

Grocery-anchored centres, value-oriented retail, and daily-needs formats are increasingly discussed alongside traditionally ‘safe’ asset classes such as logistics and data centres. Underwriting remains disciplined, but the appetite is real.

What has changed is intent. This is not speculative capital chasing recovery narratives; it is capital targeting assets with proven demand, resilient footfall, and clear relevance to everyday consumer behaviour.

AI-driven analytics and real-time performance data are actively shaping decisions around where to develop, which tenants to pursue, how to size units, and when consumers are most likely to engage. Portfolio strategy, leasing, and asset management are increasingly expected to operate from a single source of truth.

The message from operators was unambiguous: intuition alone no longer cuts it. Retail is becoming a precision business.

The CRE categories that are still winning

Despite the structural changes, the categories driving performance are strikingly consistent, and grounded in necessity and value.

Specialty and value grocers continue to anchor resilient centres, while off-price retail remains one of the most reliable traffic drivers. Health, wellness, and medical uses were repeatedly cited as non-displaceable tenants, while food-led and experience-driven concepts are playing an increasingly strategic role in dwell time and repeat visitation.

The common thread is not trendiness, but relevance. These are categories consumers cannot easily defer, digitise, or abandon.

Smaller footprints allow retailers to open faster, control costs, and respond more dynamically to where customers actually are. As a result, leasing decisions are being driven less by rigid category assumptions and more by data-led insights into local demand.

Speed and flexibility, not scale, are becoming the differentiators.

Convenience is the operating system

If there was one consumer insight that underpinned nearly every conversation, it was convenience. Ease of access, parking, pickup, and fulfilment are no longer operational considerations — they are strategic ones.

This extends to infrastructure decisions. EV charging, for example, was repeatedly highlighted not as a sustainability box-tick, but as a genuine traffic driver. It attracts higher-spending demographics and keeps customers on-site longer, reinforcing the idea that convenience investments directly influence performance.

Geography still matters

While the structural story is national, geography continues to shape opportunity. The Sunbelt remains the epicentre of development and investment, driven by population growth, business migration, and sustained consumer demand.

At the same time, traffic levels are holding up more broadly than headlines suggest, particularly in value-led and experience-oriented destinations. One demographic stood out in particular: Gen X. Often overlooked, this cohort is actively spending on experiences while remaining highly value-conscious, making them a powerful driver of today’s retail economics.

A more professional industry 

Taken together, the message from ICSC New York was clear. Retail is not reverting to old habits, it is moving forward. 

The sector is faster, more data-driven, more selective, and more operationally mature than it was before. Success now requires clarity, evidence, and a deep understanding of how physical space supports modern consumer behaviour. 

Retail is back. But it’s a very different business than the one many remember.