Retailers continue to invest in technology, embrace artificial intelligence and expand omnichannel services as they adapt to evolving consumer expectations, according to The Levin Management Corp.’s 2026 Mid-Year Retail Sentiment Survey.
The survey of store managers across the shopping center operator’s portfolio of properties further indicated that overall retail performance remained stable: 61.6% of respondents said year-to-date sales were equal to or higher than last year’s revenues. As for drivers, 63.9% of store managers reported that customer traffic was stable or higher year over year. Retailers identified customer traffic (29.9%) and customer spending (23.4%) as the leading factors influencing sales performance today.
Tech is becoming more integrated into how store managers operate, the survey suggested, with 47.8% of respondents saying their companies are making new technology investments this year. Levin noted that the figure, as it stands in 2026, represents a gain from 44% in 2025 and 38% in 2024.
As the technology has proliferated, artificial intelligence has become increasingly mainstream, with 66.4% of store managers saying they are actively using, testing or exploring AI within their operations. Already, 25.6% of store managers are actively using AI, demonstrating its transition from emerging technology to a practical business tool, Levin stated.
Among retailers using or testing AI, marketing and content creation was the leading application, for 53.2% of respondents, followed by data analysis and reporting (49.4%), Customer service and chatbots (41.8%) and inventory forecasting (27.8%). The data indicates retailers are increasingly integrating AI into everyday operations to improve marketing, customer engagement and business decision-making, Leven noted.
In the survey, buy online/pick up in-store remains the most widely offered fulfillment option at 50.3%, while curbside pickup saw the largest proportional gain, rising from 22.2% in 2025 to 37.8% in 2026. Local delivery also ticked up, from 32.5% to 39.9% year over year, as retailers continued to adapt their fulfillment options to meet evolving customer expectations.
Cost pressures remained a concern for store managers, with retailers citing the cost of goods and supply chain costs (46.9%) and labor and staffing costs (45.5%) as their most significant operational challenges. Under current economic conditions, retailers are prioritizing investments that improve efficiency and long-term resilience rather than simply cutting outlays.
Among the other findings, the survey illustrated how retailers’ marketing strategies continue to change with consumer demands, Levin asserted. Instagram has become the most widely used social platform among survey respondents, up from 35.4% in 2014 to 70.4% in 2026. Over the same period, Facebook usage declined from 93.9% to 62.4% and TikTok, first measured in 2022 at 20.6%, rose to 42.4%, reflecting a growing retailer emphasis on visually driven and emerging digital platforms. About 60% of respondents said they use Google Business Profile, underscoring the growing importance of local search visibility and online reputation management.
Store managers remain optimistic about the second half of 2026, with 71% expecting sales to remain stable or improve. Respondents identified consumer confidence and overall economic conditions as the primary factors influencing their views ahead.
“One of the greatest strengths of conducting this survey for more than a decade is the ability to see how retailer priorities evolve alongside changing consumer behavior,” said Melissa Sievwright, Levin vice president of marketing and corporate communications. “The shift in social media is one of the clearest examples. Over the years, we’ve seen retailers diversify from relying primarily on Facebook to embracing platforms like Instagram and TikTok as they adapt their marketing strategies to better engage today’s consumers.”
Matthew Harding, Levin CEO, added, “Retailers continue to evolve alongside changing consumer expectations. Our survey shows retailers making strategic investments in technology, AI and omnichannel capabilities that strengthen operations, enhance the customer experience and position them for long-term growth. Even as retailers continue managing operating cost pressures, they’re investing in tools that improve efficiency while reinforcing the importance of the in-store experience.”
