Ron Johnson Bets on Stores Against AI Agents

Ron Johnson, the architect of the Apple Store network, rejects the idea that AI agents will take over a significant portion of shopping. He views AI as a tool for preliminary information, not as a substitute for in-person trials, and aligns this belief with the successes and setbacks of his retail journey.

Acknowledged Setbacks and Unwavering Faith in AI

Ron Johnson left J.C. Penney less than two years after taking the helm, following a drop in sales. He acknowledges that he tried to transform the brand too quickly, without sufficiently involving employees and customers. He indicates that he approached the situation with a startup-inspired mindset, when a turnaround was needed, while the Apple Stores operated like a startup in synergy with the brand's products. Later, Enjoy Technology, his company focused on the delivery and installation of tech products at home, went bankrupt in 2022 and sold nearly all its assets to Asurion. Despite these setbacks, Johnson maintains a persistent optimism regarding artificial intelligence. He asserts that there is no substitute for human intuition and believes that Steve Jobs would have embraced AI, but without making it a replacement for human judgment.

The Push for AI Agents in Retail

Silicon Valley is investing billions of dollars in developing AI agents capable of making purchases for consumers, an approach termed agentic commerce. Google is promoting a Universal Commerce Protocol, a standard designed to enable AI agents to assist consumers from product discovery to payment. Meanwhile, OpenAI is transforming ChatGPT into a shopping destination where users can search, compare, and, in some cases, purchase products without leaving the chatbot.

A Red Line: Personal Purchases Cannot Be Delegated

Ron Johnson believes that no customer would entrust an agent with the task of selecting and purchasing a $1,000 or $2,000 laptop without visiting a website or going to a store. According to him, such purchases remain too personal: consumers want to handle the device, examine the screen, and choose the size that suits them. He admits that AI can be useful for narrowing down choices, but he believes that many buyers will prefer to test the product themselves before spending such an amount. Johnson argues that artificial intelligence will never be able to offer the physical experience of a product and instead predicts that customers will arrive in-store with better information. He sees AI as enhancing the online shopping experience without fundamentally changing the way people shop.

The Apple Store Model According to Johnson: The Role of Teams

Ron Johnson explains that Apple Stores were designed to allow product trials, learning how to use them, and obtaining help in case of issues, beyond mere sales. This network, established in 2000 and now central to Apple’s sales and customer relations, has inspired competitors who have adopted its glass design, open layouts, and variations of the Genius Bar. However, he asserts that many have overlooked the importance of people. According to him, the secret of Apple lies in its employees and how they treat customers. He specifies that teams are not paid on commission to eliminate sales pressure and better understand the real needs of customers. Johnson elaborates on this vision in his book Shop Different: How Retail Revealed Apple’s Genius and maintains that physical stores will continue to thrive.