The notion of retail stores vanishing entirely has been a topic of debate for years, especially as the pandemic significantly disrupted foot traffic. Many retailers faced bankruptcy and closed numerous locations, while e-commerce rapidly grew to meet shifting consumer needs. Businesses invested heavily in online platforms, reflecting the growing reliance on digital shopping.
However, the narrative has shifted. Physical stores have experienced a rebound, with foot traffic returning to pre-pandemic levels in many areas. According to Kelly Pedersen from PwC, there are fewer retail vacancies today, and younger shoppers are rediscovering the in-store experience, though not always to make purchases. Pedersen highlights that this resurgence is not simply about buying but reflects a shift towards stores being destinations for browsing, returning items, or exploring new products.
Michael Brown of Kearney suggests that the turnover seen in malls and high streets indicates evolving shopper preferences, which can be a positive development. Younger brands, particularly direct-to-consumer (DTC) companies, are experimenting with shorter leases and pop-up shops, which align with these changing trends.
Despite the growth of online retail, physical shopping remains robust. Experian’s recent report revealed that in-store holiday shopping held steady between 2022 and 2023, with nearly two-thirds of sales occurring in brick-and-mortar stores. Around half of surveyed shoppers planned to visit stores during the holiday season. The tactile and immersive experience of in-person shopping offers something that even the most advanced AI-driven recommendations and personalised websites cannot replicate.
Brown emphasises the distinction between “shopping” and “buying.” Physical stores provide a sensory experience — touching, engaging, and discovering products — that enhances decision-making. While the final purchase might happen online or in-store, the act of shopping itself remains a key driver for visiting retail locations.
While digital commerce continues to grow, physical stores have proven their resilience, evolving into spaces where consumers can connect, explore, and engage. This adaptability suggests a promising future for in-store retail in a digital age.
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”.
