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THE BLUEPRINT:
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68% of store managers expect better performance in 2026
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Inflation, rising costs, and consumer confidence were cited as the biggest challenges
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AI, automation, and in-store technology are top priorities for improving efficiency and execution
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Strong customer service remains the leading advantage for brick-and-mortar retailers over e-commerce
While store managers are heading into 2026 with optimism for better performance, most say rising costs are expected to impact business this year.
That’s according to the 15th annual Retail Outlook Sentiment Survey released by Plainfield, N.J.-based Levin Management Corporation (LMC). Levin manages 125 properties totaling 16 million square feet across the Northeast and Mid-Atlantic regions, including the 221,612-square-foot Mayfair Shopping Center on 24 acres in Commack.
The survey found that most respondents (68.6%) said their stores will perform much better or somewhat better. However, they indicated that the economy and consumer confidence (71.3%) and inflation and rising costs (69.4%) were the top factors expected to impact business in 2026, followed by labor availability and labor costs (36.1%), according to a LMC statement.
“2026 is shaping up as a year where execution will matter more than ever,” Matthew Harding, Levin CEO, said in the statement. “With consumers focused on value, retailers are doubling down on fundamentals — strong service, tight inventory discipline and technology that improves efficiency in the store.”
Shifting priorities at the store level, including AI and automation, were mentioned by 40.9% as the top controllable levers to improve efficiency and day-to-day execution. And with growing competition from online retailers, 39.8% cited in-person customer service and support ranked as the top brick-and-mortar advantage.
“Our survey shows technology has quickly become the most common adaptation retailers are prioritizing, from AI and automation to payments and other tools that help teams work faster and serve customers better,” Melissa Sievwright, LMC’s vice president of marketing and corporate communications, said in the statement. “Retailers are looking for practical technology that strengthens day-to-day execution and supports customer service at the store level.”
While 24.1% reported no price increases in response to inflation in 2025, 38.8% said prices rose under 10%. Looking ahead, 35.5% said they anticipate raising prices further in 2026, while 44.9% said they’re not sure.
The Levin survey collected input from retail and restaurant store managers and operators across its managed retail properties, assessing sales and traffic performance, expectations for 2026, pricing actions, hiring and growth plans, operational adaptations, and perceived advantages of brick-and-mortar retail.
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David Winzelberg
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