Contrary to the belief that in-store shopping is becoming obsolete, recent statistics show that it is still very much alive. Over 126 million U.S. consumers shopped in physical stores from Thanksgiving through Cyber Monday this year, according to a survey from the National Retail Federation (NRF) and Prosper Insights and Analytics. This number actually surpassed the 124 million who shopped online, which marked a decline from the previous year’s 134 million. Even Cyber Monday saw a drop in online shoppers, with 64 million participating compared to 73 million in 2023.
However, this decline does not signify a major shift away from online shopping. In fact, Black Friday still stands as a dominant online shopping day, with 87 million people shopping online, outpacing the 81.7 million who visited stores. This figure also represents an increase from the 76 million in 2023. Marketers have highlighted the value of a “bricks and clicks” strategy, where online and in-store experiences complement each other. Retailers have also been integrating technology such as apps and QR codes to create a seamless shopping experience across both channels.
A survey by PWC found that 56% of shoppers considered a store or brand’s app the most important digital service during the holiday season, surpassing other features like self-checkout. This underscores the increasing integration between physical stores and online platforms, contributing to the growth of both.
eMarketer predicts that, despite the growth of e-commerce, physical stores will experience a resurgence this holiday season. However, online retail is still expected to grow at its fastest pace since 2021. Retail apps, in particular, are becoming essential tools for enhancing customer experience, driving loyalty, and providing valuable data that supports personalised marketing efforts.
In total, 197 million consumers shopped across both in-store and online platforms this holiday season, slightly down from last year’s 200 million, but still a significant number. This suggests a healthy retail season, despite the challenges posed by the economy. NRF President and CEO, Matthew Shay, expressed confidence in the market, stating that consumers are well-prepared and the economy is in a stable position.
In terms of spending, NRF predicts that holiday spending could reach a record high of between $979.5 billion and $989 billion, surpassing last year’s $955 billion. Adobe Analytics also reported that $131.5 billion was spent online between November 1 and December 2, with a projected total of $241 billion for the holiday season—an 8.4% increase from the previous year.
The shorter shopping season this year, caused by Thanksgiving falling later in November, contributed to an earlier rush of online shopping, as 38% of shoppers took advantage of deals before Thanksgiving. Despite this, the volume of shoppers over the Thanksgiving weekend exceeded expectations, providing retailers with ample opportunities to reach consumers through multiple channels. Retailers are increasingly recognising the value of omnichannel customers, those who engage across both physical stores and digital platforms, and are tailoring their strategies accordingly.
While online shopping continues to thrive, in-store shopping has proven resilient, with both channels offering complementary experiences. The integration of technology and seamless shopping options ensures that consumers benefit from a comprehensive retail experience, both online and in physical stores. Retailers are adapting to meet the needs of today’s shoppers, making this holiday season one of optimism for the retail industry.
itim Group plc (LON:ITIM) is a SaaS-based technology company that enables store-based retailers to optimise their businesses to improve financial performance and effectively compete with online competitors. Itim adds retail value by helping multi-channel retailers optimise their business and their stores to improve financial performance and compete more effectively with the “Amazons”.
