AI Is Changing How Customers Shop. Are Retailers Ready to Change? 

I’ve spent 30 years in retail, and if there’s one thing I’ve learned, it’s that retail never stops changing. 

Just when we think we’ve figured out how customers want to shop, something comes along and changes the game. 

Well, here we go again. 

I recently read a Harvard Business Review article, Who Owns the Customer in the Age of AI Agents?, and it really got me thinking. 

For years, retailers have invested millions in loyalty programs, personalized marketing, customer experiences, and technology designed to make shopping easier. 

But what happens when customers aren’t doing the shopping anymore? 

What happens when someone simply asks an AI assistant to find a product, compare the options, and recommend what to buy? 

And here’s the bigger question: 

If AI is changing how customers shop, are retailers changing how they operate? 

Because I think we’re spending a lot of time talking about what AI can do and not nearly enough time talking about what it means for the people and organizations expected to deliver it. 

Ulta Beauty: Technology Meets Human Connection 

Having spent a significant part of my career in the beauty industry, this example really hits home for me. 

Beauty has always been personal. 

I remember how important it was at Estee Lauder for our beauty advisors to really understand their customers. It wasn’t just about recommending a moisturizer or finding the perfect foundation shade. It was about asking questions, listening, building trust, and creating relationships that kept customers coming back. 

And that’s something I don’t think technology can fully replace. 

Which is why I find what Ulta Beauty is doing so interesting. 

Ulta has done a great job bringing technology and the physical shopping experience together. 

Its GLAMlab technology allows customers to virtually try on products, while its stores offer product discovery, beauty services, and knowledgeable associates. 

And then there’s loyalty. 

Ulta reported more than 46 million loyalty members in fiscal 2025, with approximately 95% of sales coming from those members. 

But here’s another number that caught my attention. 

According to Ulta’s reporting, 73% of its U.S. loyalty members shopped exclusively in physical stores during fiscal 2025. 

Think about that. 

Even with all the advances in digital shopping, customers still value the experience of walking into a store, discovering something new, and connecting with someone who knows the products. 

Now imagine someone asking AI: 

“Find me the best foundation for mature skin.” 

AI can compare products, read reviews, and narrow down the choices. 

But what happens when that customer walks into Ulta? 

They may still want to try the foundation, compare shades, ask questions, or get advice from someone who understands their needs. 

That’s where the human experience matters. 

And having spent years developing retail leaders and teams in beauty, I know that kind of experience doesn’t just happen. 

It takes knowledgeable associates, strong leadership, great training, and operational processes that allow people to focus on the customer. 

Technology can help customers find a product. But it’s the people and the experience that can turn a purchase into a lasting relationship. 

And to me, that’s the real opportunity for retailers as AI continues to evolve. 

The Part of AI Transformation We Aren’t Talking About Enough

Here’s where my retail operations brain kicks in. 

It’s easy to look at AI and think it’s another technology initiative. 

Something for IT, digital commerce, or marketing to figure out. 

But when you change how customers shop, you change how the entire organization needs to operate. 

Think about it. 

Merchants need to rethink how products are described, discovered, and recommended. 

Store operations teams need to ensure inventory accuracy, fulfillment, and service expectations can support the experience. 

Associates need to understand how to use new technology while continuing to deliver the personal service customers expect. 

And leaders? They need to help their teams navigate all of it. 

That’s a lot of change. 

And here’s what concerns me. 

I’ve been involved in more transformations than I can count, and I’ve seen the same pattern over and over. 

A company invests in a new system. 

The project team builds an implementation plan. 

Communications go out. Training gets scheduled. The system launches. 

Everyone celebrates. 

And six months later, leadership is asking why adoption is inconsistent, teams are still doing things the old way, and the expected results aren’t showing up. 

Sound familiar? 

The problem often isn’t the technology. It’s that we haven’t changed how the organization actually works. 

A Thread Perspective: Change Doesn’t Happen at Go-Live

This is something I’m pretty passionate about. 

After spending decades leading teams and helping retailers navigate transformation, I’ve learned that change doesn’t happen because someone announces it. 

And it certainly doesn’t happen just because a new system goes live. 

It happens when people understand the change, believe in it, know what to do differently, and have leaders who help them get there. 

That’s why we developed ThreadChange™ at Thread Advisory Group. 

We wanted to go beyond the traditional approach of managing communications, training, and implementation milestones. 

Because while those things are important, they’re not enough. 

ThreadChange™ focuses on three areas that I believe make the difference between launching a change and actually making it stick. 

Change Leadership: Build the Capability to Lead People Through Change 

We can’t expect leaders to champion a transformation simply because they’ve attended a meeting or received a rollout deck. 

They need to know how to lead it. 

That means understanding where their people are ready, where resistance might show up, and how to coach individuals through the transition. 

Think about a store manager whose team is being introduced to new AI-enabled tools. 

Some associates will be excited. Others will be skeptical. Some may worry about how their roles will change. 

A great leader knows how to recognize those differences and respond. 

ThreadChange™ builds that capability, giving leaders practical ways to assess readiness, create confidence, and guide their teams through change. 

Because change leadership isn’t about telling people what’s happening. It’s about helping them move forward. 

Communication: Go Beyond the Announcement 

Let’s be real. 

An email announcing a new process isn’t a communication strategy. 

Neither is a PowerPoint explaining why the company is implementing AI. 

People want to know what the change means for them. 

How will my job be different? What’s expected of me? Why are we doing this? And will it actually make my work better? 

Those are the conversations leaders need to be having. 

ThreadChange™ helps organizations move beyond one-way communication by equipping leaders to create understanding, build buy-in, and address resistance before it becomes a barrier. 

And that communication needs to be ongoing, not something that ends when the system launches. 

Adoption: Where the Real Work Begins 

This is where I think many organizations fall short. 

We spend months getting ready for launch and sometimes very little time making sure the change actually sticks. 

But completing training doesn’t mean someone has changed their behavior. 

And using a new system doesn’t necessarily mean they’re using it effectively. 

Imagine an associate learning to support a customer who’s already researched products through AI. 

The associate may need to ask different questions, use different tools, and bring a new level of expertise to the conversation. 

That requires more than a training module. 

It requires rethinking the workflow, practicing new skills, coaching on the floor, and reinforcing those behaviors over time. 

ThreadChange™ connects learning, workflows, leadership reinforcement, and measurement so organizations can see whether the change is actually happening. 

Because the goal isn’t getting people through training. It’s helping them work differently and better. 

The Future of Retail Is Still About People

I don’t believe AI is going to eliminate the need for human connection in retail. 

But I do think it’s going to challenge retailers to get much clearer about where they create value. 

Ulta is a great example of how technology, loyalty, and the physical store can complement one another. 

And as AI continues to evolve, the retailers that succeed won’t necessarily be the ones implementing the most technology. 

They’ll be the ones that know how to connect that technology to their people, processes, and customer experience. 

I’ve seen firsthand what happens when organizations get that right. 

And I’ve seen what happens when they don’t. 

You can have the best strategy and the best technology in the world, but if your people aren’t prepared to execute it, you won’t get the results you’re looking for. 

That’s what makes change leadership so important. 

AI may be changing how customers shop. But it’s leadership, workflows, and adoption that will determine how successfully retailers respond. 

So here’s the question I keep coming back to. 

Are we spending enough time preparing our organizations for AI, or are we still putting most of our energy into implementing the technology? 

The customer is changing. 

Are we? 

Ready to Make Change Stick?

At Thread Advisory Group, we help retailers move beyond implementing change to building the leadership capability, operational alignment, and adoption support needed to make it sustainable. 

Through ThreadChange™, we connect strategy to the people and workflows that bring it to life. 

If your organization is preparing for an AI transformation, implementing new technology, or struggling to get adoption from an existing initiative, let’s talk. 

Connect with us or learn more at Thread Advisory Group.

Inspiration and Sources 

• Sangeet Paul Choudary, Who Owns the Customer in the Age of AI Agents?, Harvard Business Review, October 9, 2026. 
• Ulta Beauty corporate reporting and customer experience information: Ulta Beauty.