For a long time, it seemed that the digital wave would sweep away brick-and-mortar retail. With the rise of e-commerce, driven by online giants like Amazon, Zalando, and Shopify, physical retail was often seen as a fading model. However, current market data tells a different story: the once-disruptive force of online commerce has stabilized — and traditional stores are experiencing a remarkable comeback, thanks to intelligent omnichannel strategies. Retailers who successfully combine online and offline channels are gaining significant competitive advantages.
The Status Quo: Brick-and-Mortar Still Dominates
A recent analysis by Colliers (via Retail Dive) reveals that approximately 76% of retail sales in the U.S. are still generated through physical stores, despite all the advancements in digital commerce. In particular, omnichannel-oriented retail models are proving their strength by seamlessly linking physical retail spaces with digital services, ensuring revenue stability. Apart from the pandemic-induced dip in 2020, physical retail has remained consistently strong over the years. The much-hyped “e-commerce revolution,” once described as a mortal threat to downtowns and traditional retailers, has turned out to be overstated — especially in sectors where omnichannel commerce is smartly implemented.
Omnichannel as the Key to Retail Success
So what does this mean for retailers? The term omnichannel refers to a strategy where all available sales channels — online and offline — are seamlessly integrated. The customer decides where, when, and how to engage with the brand.
A practical example: customers order products online and pick them up in their nearest physical store — a strategy commonly known as Click & Collect. According to recent data, nearly one-third of all online sales in 2024 were fulfilled through physical stores. Either via in-store pickup or shipping from local inventory. This evolution shows clearly: online and offline retail are not mutually exclusive, but strategically complementary.
Returns: The Underestimated Challenge
Another factor strengthening physical retail is returns management. In 2023, the value of returned goods reached nearly $890 billion. Representing a massive operational and financial challenge for online merchants.
Here, physical stores offer a strong advantage: customers can return unwanted products directly in-store. A process that not only reduces logistics costs but also encourages impulse purchases on-site. Retailers like Target and Walmart are increasingly relying on this hybrid return model, which improves customer satisfaction while enhancing operational efficiency.
Tech-Driven Innovation in Local Retail
Brick-and-mortar stores are also catching up technologically: digital checkout systems, AI-powered inventory planning, and mobile loyalty apps are now widespread. The modern store is no longer just a sales floor but a data-driven service hub.
In addition, experiential shopping is gaining importance — a concept focused on creating a memorable, immersive in-store experience. Younger demographics like Gen Z and Millennials are actively seeking out brands that offer physical touchpoints and emotional engagement, beyond the purely transactional.
Conclusion: E-Commerce Strategists Must Rethink
For e-commerce professionals, the era of “either online or offline” is officially over. Competitive advantage lies in the clever orchestration of both worlds. Brands that want to succeed long-term must view brick-and-mortar not as a step backward, but as a strategic extension of their digital presence.
The future of retail is omnichannel commerce — an integrated approach where technology, logistics, and customer experience work hand in hand. Companies that embrace hybrid models today are positioning themselves for sustainable success in an evolving marketplace.