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Your customers need both, so design a channel strategy that exceeds their expectations.
Although ecommerce continues its rapid growth, brick-and-mortar retailers remain vital players in the evolving U.S. retail landscape. By the first half of 2025, approximately 59% of consumers prefer shopping online, while 41% still opt for in-store purchases, signaling a significant but not all-encompassing shift to digital channels.
Overall, the U.S. retail market is projected to reach $7.4 trillion in annual sales this year. The majority of those sales will likely still take place in person. As of Q4 2024, ecommerce made up 16.4% of total U.S. retail sales, with the remainder coming from physical stores. However, consumer behavior is increasingly shaped by convenience, personalization and emerging omnichannel options, driving more consumers to opt for online shopping opportunities.
In the struggle between brick-and-mortar vs. ecommerce stores, online shopping provides clear advantages that help drive its rising popularity:
Most buyers research products online first, using social media, websites, and apps before making final decisions. Over 80% of consumers check out brands on social platforms before buying, 70% have made purchases directly on social channels and nearly 30% purchase on the same day they discover a product.
Traditional retail stores are still responsible for the majority of sales in the U.S. These brick-and-mortar locations excel in several ways that digital platforms struggle to match, including:
Physical locations still allow for immersive experiences, including product demos and samples, especially important for categories like beauty, food or furniture.
Feature/Experience | Online Shopping | In-Store Shopping |
---|---|---|
Convenience | Shop anywhere, anytime | Travel required; store hours |
Product Selection | Broad; unlimited shelf space | Limited by physical space |
Price | Often lower due to competition | More impulse buys/promotions |
Sensory Experience | None; relies on photos/descriptions | Full; touch, test, demo |
Customer Service | Automated/chat; limited interaction | Real-time, personal help |
Returns | Can be slower, shipping required | Immediate, in-person |
Social Aspect | None | Can be group/social event |
Fulfillment Speed | Shipping delay | Instant takeaway |
Best Use Cases | Repeat, familiar, commodity products | Novel, complex, tactile products |
Modern retail isn’t limited to “online vs. in-store.” Instead, businesses succeed with hybrid approaches. These strategies should take into account the following:
Unified inventory systems and seamless customer data allow for consistent experiences whether shoppers switch platforms or interact across multiple channels. Jennifer Johnson, owner of True Fashionistas, says the buy online, pick up in-store option “works beautifully because customers shop when they pick up their order, resulting in more sales.”
If you plan on implementing a hybrid, omnichannel approach for your retail business, consider the following checklist:
Omnichannel approaches ensure both convenience and meaningful engagement. However, not all businesses will find the pivot equally feasible. According to Nick Gausling, consumer sector consultant and managing director at Romy Group, daunting overhead costs make it hard for online retailers to move into the physical sector.
“It’s much easier for brick-and-mortar retailers to expand into digital channels than it is for e-commerce retailers to launch physical stores,” Gausling explained. “Pure play e-commerce businesses should explore wholesale partnerships with established brick-and-mortar retailers to more realistically attain a multichannel presence.”