New Jersey retail operators are increasingly turning to artificial intelligence (AI) and digital technology to meet shifting consumer demands, according to the 2026 Mid-Year Retail Sentiment Survey released Tuesday by North Plainfield-based Levin Management Corporation (LMC).
The long-running poll, which surveyed more than 150 store managers and business operators across LMC’s commercial real estate portfolio, reveals that nearly half of respondents (47.8%) have made new technology investments this year. That represents a steady climb from 38% in 2024 and 44% in 2025.
AI integration has reached a tipping point, with two-thirds (66.4%) of surveyed retailers currently utilizing, testing, or exploring the technology, and over a quarter (25.6%) actively using it in daily operations.
“Retailers continue to evolve alongside changing consumer expectations,” Matthew Harding, chief executive officer of Levin Management Corp. said. “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.”
Among those implementing AI, the most common applications include:
- Marketing and content creation: 53.2%
- Data analysis and reporting: 49.4%
- Customer service and chatbots: 41.8%
- Inventory forecasting: 27.8%
The shift toward omnichannel convenience is also accelerating. While Buy Online, Pick Up In-Store (BOPIS) remains the most common hybrid option at 50.3%, curbside pickup experienced the largest year-over-year jump, rising from 22.2% in 2025 to 37.8% in 2026. Local delivery options also climbed to 39.9%.
This tech push comes against a backdrop of steady mid-year business performance. Approximately 61.6% of retailers reported that year-to-date sales are flat or higher than last year, and 63.9% reported stable or improved foot traffic.
Despite persistent headwinds from inflation—namely the cost of goods (46.9%) and rising labor costs (45.5%)—retailers are actively adjusting how they reach consumers. Over the past decade, local marketing channels have undergone a dramatic transformation. Instagram has overtaken Facebook as the primary social platform for 70.4% of businesses, while TikTok usage has doubled to 42.4% since 2022.
“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,” Melissa Sievwright, LMC’s vice president of Marketing and Corporate Communications said.
Looking toward the remainder of the year, New Jersey retailers express solid optimism, with more than 71% anticipating that sales will remain stable or improve through the second half of 2026.
