In today’s retail scenario, 15.4% of all retail sales occur online, leaving 84.6% to be facilitated in-store.
However, the trajectory is leaning towards digital platforms, with projections estimating that nearly 35% of all retail sales will be conducted online by 2025.
To highlight this significant transitional phase in retail, I’d like to share the most important shift from brick and mortar to online statistics that are crucial to note immediately. 🏬📈
Shift From Brick And Mortar To Online Statistics: The Key Data
- Currently, 15.4% of all sales are done online, while 84.6% are done in-store.
- Brick and mortar sales in the United States reached $3.6 trillion in 2022, with ecommerce sales accounting for $1 trillion.
- Brick-and-mortar sales increased by 8% in 2022, while e-commerce sales rose by 7.7%.
- By 2025, almost 35 percent of all retail sales are projected to be conducted online.
- Since 2001, online sales have increased by 300%, while department store sales have decreased by 50%.
- The number of physical retail stores in the United States has declined from over 450,000 in 2011 to just under 350,000 in 2021.
- Retail sales will rebound from a 3.2% decline in 2020 to a 1.6% increase in 2021.
- Since the beginning of the COVID-19 pandemic, 94% of consumers have returned to shopping in physical stores.
- 56.6% of Americans prefer to shop online over in-store, a 10% increase from 2020.
- By 2040, ecommerce is expected to facilitate 95% of purchases.
Sources: (Fool, Forrester, Digital Commerce 360, Bloomberg, Comarch, Tidio, Medium, Zippia, Fit Small Business, Linkedin.)
Table of Contents
Online Sales Comprise 15.4% of Total; 84.6% Still In-Store
Important takeaway:
| Insight from Data | Rationale |
| In-store shopping remains the dominant sales channel | Despite the rise of digital platforms, a commanding 84.6% of purchases still occur within brick-and-mortar establishments. |
| Online sales carve out a significant niche | Holding 15.4% of all sales, e-commerce is not merely an alternative, but a substantial force in the retail landscape. |
| Retailers must straddle both worlds for maximum reach | The data underscores the importance of a dual strategy, catering to both in-store enthusiasts and online shoppers. |
Source: Fool
US Brick & Mortar Sales Hit $3.6T; Ecommerce Reaches $1T in 2022
Important takeaway:
| Insight from Data | Rationale |
| Brick and mortar remains a titan in the retail space | Commanding a vast $3.6 trillion, physical stores continue to underscore their enduring relevance and dominance in the market. |
| Ecommerce breaches the trillion-dollar mark | Hitting the $1 trillion milestone, ecommerce firmly establishes itself as an indispensable pillar in the US retail ecosystem. |
| The retail landscape thrives on a multifaceted approach | The substantial figures from both channels emphasize the necessity for retailers to adeptly navigate both digital and physical realms. |
Source: Forrester
Brick-and-Mortar Sees 8% Rise in 2022; E-commerce Up 7.7%
Important takeaway:
| Insight from Data | Rationale |
| Brick-and-mortar’s resurgence is undeniable | The 8% upswing signals not just the enduring value of in-person shopping, but its growing appeal amidst evolving market conditions. |
| E-commerce maintains robust growth momentum | Despite being a mature market, the 7.7% surge in e-commerce sales showcases its persistent allure and expansive potential. |
| Both platforms are pivotal in the evolving retail equation | Near-parallel growth rates highlight the imperative for retailers to invest equally in digital and physical sales strategies. |
Source: Digital Commerce 360
Online Retail Projected to Cover 35% of Sales by 2025
Important takeaway:
| Insight from Data | Rationale |
| E-commerce is poised to redefine the retail landscape | A projection nearing 35 percent for online sales underscores a transformative shift in the way consumers will shop by 2025. |
| Traditional retailing faces a pivotal moment | With online sales capturing a third of the market, brick-and-mortar establishments must adapt to a changing consumer base. |
| Omni-channel strategies become non-negotiable | Retailers will need a cohesive approach, marrying in-store and online experiences, to harness the full spectrum of sales potential. |
Source: Bloomberg
Online Sales Soar 300% Since 2001; Department Stores Down 50%
Important takeaway:
| Insight from Data | Rationale |
| The digital marketplace has experienced meteoric growth | A monumental 300% escalation in online sales since 2001 underscores the digital revolution and its impact on consumer behavior. |
| Department stores grapple with a seismic decline | The stark 50% drop in sales paints a poignant picture of the challenges traditional retailers have faced in the digital age. |
| The retail landscape demands transformative adaptation | With such contrasting trajectories, it’s evident that future success hinges on retailers’ agility and adaptability to change. |
Source: Comarch
US Physical Retail Stores Drop from 450K in 2011 to 350K in 2021
Important takeaway:
| Insight from Data | Rationale |
| A notable contraction in the brick-and-mortar landscape | The decline from over 450,000 to just under 350,000 stores unveils a substantial shift in the structure of US retail. |
| Digital proliferation challenges traditional establishments | The significant dip over the decade points to the growing influence and competition from online platforms. |
| Retail resilience is tested and redefined | The changing numbers underscore the urgency for physical stores to innovate and remain relevant in an evolving marketplace. |
Source: Tidio
Retail Bounces Back: 1.6% Growth in 2021 from 3.2% Decline in 2020
Important takeaway:
| Insight from Data | Rationale |
| The retail sector demonstrates remarkable resilience | Bouncing back from a 3.2% dip in 2020 to a 1.6% growth in 2021 signals a sector robust enough to weather significant challenges. |
| A year of recovery and renewal emerges | The positive swing in 2021, following the previous year’s decline, showcases an industry in active rejuvenation mode. |
| The adaptability of retailers is a force to be reckoned with | The swift pivot in just a year underscores the agility of retailers in responding to market dynamics and consumer needs. |
Source: Medium
Post-Pandemic Retail: 94% Consumers Return to Physical Shopping
Important takeaway:
| Insight from Data | Rationale |
| The allure of in-store shopping remains undeniable | Even in the wake of a global crisis, a staggering 94% of consumers are drawn back to the tactile experience of brick-and-mortar shopping. |
| Consumer behavior is resilient and adaptive | The swift return to physical stores post-pandemic showcases the adaptability of consumers and their evolving comfort levels. |
| Physical retail is far from obsolescent | Despite the surge in online shopping during the pandemic, brick-and-mortar establishments retain a significant pull on the consumer psyche. |
Source: Zippia
56.6% Americans Favor Online Shopping; Up 10% from 2020
Important takeaway:
| Insight from Data | Rationale |
| Digital shopping garners majority preference | With 56.6% of Americans favoring the online realm, e-commerce has unmistakably emerged as the dominant shopping modality. |
| A marked transformation in just a year’s span | The sharp 10% increase from 2020 accentuates the rapid pace at which consumer behaviors and inclinations are evolving. |
| The pandemic’s lasting imprint on retail dynamics | Beyond its immediate effects, the events of 2020 have catalyzed enduring changes in the way Americans approach retail consumption. |
Source: Fit Small Business
By 2040, Ecommerce Set to Drive 95% of All Purchases
Important takeaway:
| Insight from Data | Rationale |
| Ecommerce is set to become the primary shopping channel | An anticipated 95% of purchases via ecommerce by 2040 projects a revolutionary shift in global shopping behaviors. |
| Traditional retail faces its most decisive moment | With such a profound dominance by online channels, brick-and-mortar establishments must rethink their role and strategy. |
| The future of commerce hinges on digital mastery | Retailers, brands, and businesses must prioritize ecommerce adaptability to remain relevant and competitive. |
Source: Linkedin
