Generative AI-Driven Retail Space Branding: An Exploratory Study on Perceived Brand Image in Flagship Store Design

The increased use of generative artificial intelligence (AI) is transforming the design process, introducing new paradigms in retail space branding. This paper explores the impact of generative AI-driven design on consumer perception of brand identity and brand image within retail environments. Focusing on the flagship store of a Korean cosmetics brand as a case study, we developed AI-generated store images, including façade and interiors, using ChatGPT 4o and Midjourney. A survey was conducted with a total of 304 participants to assess differences in consumer perception of brand identity and brand image between the existing store images and the generative AI images. The results from the consumer survey revealed that the AI-generated designs more effectively conveyed brand identity and significantly enhanced brand image. Moreover, AI-assisted designs demonstrated a higher consistency with the brand’s core identity, contributing to a stronger consumer–brand connection. These preliminary findings suggest that generative AI serves as not only an efficient design tool but also a strategic element for improving consumer experiences with retail space branding. This research highlights the potential of AI collaboration as a new driver in the evolving landscape of the design industry, offering practical and theoretical insights for future applications.