The role of AI in serving consumers the goods they want to buy, in the way they want to buy them, was top of mind at the National Retail Federation’s annual State of Retail & the Consumer virtual program on March 18, along with a focus on winning and keeping the loyalty of Gen Zers as they move into new stages of life.
The sprawling Port of Los Angeles was the backdrop for an update from NRF Chairman and BJ’s Wholesale Club Chairman and CEO Bob Eddy, NRF President and CEO Matthew Shay and Gene Seroka, the port’s executive director. The meeting focused on the roles of technology, trade and the supply chain in retail this year.
The retail industry is the country’s largest private-sector employer, Shay said, supporting more than 55 million jobs and contributing more than $5 trillion to the US economy each year. “As we head into 2026, the economy remains on solid footing, supported by low unemployment, steady wage gains and higher tax refunds,” Shay said. “At the same time, ongoing policy uncertainty continues to weigh on both consumer and business confidence.”
The Port of Los Angeles, the largest US container port, handles goods that go to all 435 US congressional districts, Seroka said. Imported goods bound for retailers of all sizes come through the port, some destined for local shops and others loaded directly onto rail cars for shipment around the country to retailers, including BJ’s.
“The key to our business is value, so we’re constantly scouring the globe to find the right products at the right price,” Eddy said.
AI and automation play an increasingly important role at every step in moving goods from around the world to consumers. BJ’s is a growing company with more than 260 warehouse clubs and counting, and the focus on value means getting as efficient as possible to keep prices low without sacrificing quality and to serve more customers, Eddy said.
One example is the use of digital twins. In BJ’s stores, a robot called Tally maps the entire store to alert staffers to shelves that need replenishment and other inventory issues. “We have not replaced any human team mates because of this; we’re just letting them do more work and serve more members,” Eddy said.
Technology, both visible and behind the scenes, is also driving work at the port, and efforts are underway to ensure that the human workforce is prepared.
“The Port of Los Angeles and the state of California are building the first goods moving training camp in the country to upskill and reskill current workers and to attract, recruit and retain new workers for tomorrow,” Seroka said.
Gen Z and spending trends
A separate panel explored the way a changing Generation Z is spending and driving trends.
Gen Z’s likes, dislikes and shopping habits have been a focal point for the retail industry from their earliest days and keeping up with this diverse group is even more important at this pivotal point, when the oldest are about to start turning 30 and the youngest are transitioning into high school, said Katherine Cullen, NRF’s vice president of industry and consumer insights.
“They’re not kids anymore,” Cullen said. “They’re teenagers, college students and young adults. And it shows in their spending habits and their sentiments.”
Cullen discussed the importance and challenges of keeping up with this generation and the fast-changing trends fueled by social media with Rachel Hardy, Pinterest’s director of consumer product marketing, and MaryLeigh Bliss, YPulse’s chief content officer.
“Gen Z is exhausted, and the future is uncertain, and this idea of a five-year plan no longer exists,” Hardy said. “They’re really seeking comfort, nostalgia and indulgences in those small moments,” she added.
Self-care, simple pleasures and small treats are important to many in this generation. More than half of Gen Z consumers surveyed by YPulse aren’t confident that the economy will improve this year, Bliss said, and many are looking for “those moments of joy.” “They’re more likely than other age groups to say that the biggest financial priority in their lives right now is buying the things they want,” Bliss said.
That preference is reflected in treat culture and the “trinket trend,” she said. Gen Z’s attitudes are still shaped quite a bit by the COVID-19 pandemic, more than any other group, Cullen said. Twenty-three percent of Gen Z members surveyed said the pandemic negatively affects their view of the economy, compared to 14% for all adults, according to NRF data.
While huge splurges are out for many in this group, smaller, more frequent purchases that offer “that little dopamine hit” are in, Bliss said.
When it comes to AI, Gen Z has mixed feelings. They use it, but they’re also skeptical and have learned to verify the content they see online. Seventy-seven percent of Gen Z have positive feelings about AI, Bliss said, but there are negatives. “They’re becoming AI detectives, so when they see something online, their instant question is ‘Is this AI?’”
That skepticism means retailers and brands must be authentic and transparent to win over Gen Z consumers. Brands can embrace this by labeling content “made by humans.”
Another challenge is that many of the AI tools are text-heavy, but Gen Z thinks in pictures and images, Hardy said. Tools like the one just launched by Pinterest are visual-first to help consumers find exactly what they’re looking for. Self-expression and aesthetics matter to Gen Z, both for standing out from the crowd and for connecting with a community, Bliss said.
Gen Z consumers go to Pinterest to explore their aesthetics through mood boards, Hardy said, which often offers a glimpse into what the next hot trends will be, and how Gen Z is making trends their own and creating microtrends out of them.
All three speakers reminded retailers and brands that Gen Z isn’t a monolith – consumers within the demographic are at very different stages of life and have diverse needs. Additionally, Bliss advised caution when studying trends to make sure that they’re actual trends versus a story gleaned from “one or two TikToks.”
Check out the full program, watch the entire information-packed hour and read some media coverage below. NRF forecasts that retail sales in 2026 will grow by 4.4% to $5.6 trillion.