What: BCG's updated Win the Town framework argues that AI now makes it possible to manage store networks by role, resilience, and ecosystem value rather than by store-level margins alone.

Why it is important: Retailers still evaluating stores on isolated four-wall P&L risk over-investing in weak-margin locations that anchor network-wide value, or closing them and losing that value entirely.

BCG's newly updated Win the Town retail strategy argues that AI has moved from pilot-stage experiments to being embedded throughout retail operations — frontline workflows, in-store technology, retail media, and fulfillment — making real-time data on each store's network contribution far easier to obtain. This has made it feasible to manage stores as a portfolio rather than isolated units. Leading retailers now design and evaluate locations by three factors: role (the function a store plays beyond selling), resilience (its ability to absorb demand and supply volatility), and ecosystem value (the contribution it makes to other parts of the business, such as fulfillment or retail media reach). BCG illustrates this through three patterns: Walmart and Alibaba's Freshippo treating stores as network infrastructure; Coolblue designing stores as coordinated amplifiers of online sales; and Decathlon and Domino's building durable advantage through disciplined, measurable execution. The firm recommends starting with no-regret moves — clarifying each store's role, tracking network-level KPIs alongside four-wall P&L, and testing closures against network impact — achievable within a single quarter.

IADS Notes: Walmart's delivery-speed advantage — driven by AI shopping agents, marketplace growth, and cross-border expansion — illustrates how leading retailers translate technology investment into measurable commercial gains, including a 35% lift in average order value from AI-powered tools (Inside Retail, May 2026). This scale advantage is mirrored in retail media, where Australian fashion players are building data-led advertising platforms to compete with supermarket incumbents, arguing that style preferences, brand affinities, and discovery-led shopping journeys can offer advertisers a distinct audience even without transaction frequency (Inside Retail, July 2026). The stakes of this divide are structural: as AI shifts competition from access to visibility, the top 10 retailers now account for 19% of global retail sales, up from 11% in 2016, while mid-market players risk exposure unless they build stronger data ecosystems and category authority (Forbes, July 2026).

Retailers need to manage stores as a portfolio now. AI lets you do that.