Let’s give you the real retail statistics that help you discover if selling online or in physical stores will lead the way beyond 2022! Firstly, the global data shows that in 2023 retail sales are said to head toward $30.3 trillion. With retail ecommerce sales counting towards $265 billion in the US alone.
In 2022, Shopify noted that US retailers opened double the amount of stores than those that shut down. Your classic brick and mortar store isn’t going anywhere either, generating a whopping $6.22 trillion in the US alone this year.
Let’s delve into the retail statistics for brick and mortar vs ecommerce to help you prepare your own business for success!
Before we dig into the good stuff, our research into online vs in store shopping statistics gave us fascinating results. Let’s take a look at some of the vital retail statistics in 2023:
- 94% of customers are shopping in physical stores
- Every week 40% of consumers make a purchase in-person
- In the US alone there are nearly 3 million retail trade businesses
- 13% of retail sales is from ecommerce (in the US)
- Globally there is over 26 million ecommerce websites
- 87.6% of Gen Z prefer online shopping
- Once a month, 75% of shoppers buy online
- 59% of consumers are interested in shopping online and in-store pickup
- Grocery brick and mortar stores make up $6.22 trillion in the US each year
- In 2023 retail sales will exceed $30.3 trillion.
- 21% of the world’s retail sales are now online, since 2022
In the battle between brick and mortar and ecommerce, the two seem to go hand and hand. While businesses we’ve spoken to are seeing a rise in people wanting in-store experiences (particularly during the holidays), there is a huge demand for online shopping, especially among younger generations.
Now we’re going to explore what a brick and mortar store is, the top ecommerce vs brick and mortar retail statistics, and see what the trends are for both in future.
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A brick and mortar store is a building that houses a physical store, it’s where consumers go to purchase goods or services. Think a physical street address rather than in the metaverse or on the internet of things.
With the rise of ecommerce, which is online shopping, during the pandemic it was thought that classic brick and mortar stores might plummet. But since then physical stores are reopening and seeing bigger turnouts than ever.
But before we get into the big brick and mortar statistics let’s take a look at some pros and cons of having one.
Pros and Cons of Having A Brick And Mortar Store
Let’s explore what it means to have a brick and mortar store: what benefits can you get, and what are the possible downsides for your business?
|✔️ You establish your brand presence physically||❌ Property rental costs|
|✔️ Customers get a valuable experience from going in-store||❌ It can be more cost effective to have an ecommerce website|
|✔️ Physical stores tend to generate more income||❌ Cost of employees, store furniture, and marketing|
|✔️ Upselling and cross-selling items is easier||❌ Customers have to physically go to store and wait in line|
|✔️ Customers get the choice to order online and pickup in-store||❌ Sales are limited to your stores stock|
|✔️ Consumers can test what they're buying|
|✔️ They build a connection with customers through service|
The main pros of having a brick and mortar store is you have a physical hub where customers can interact with your products and get to know your brand through its customer service. Customers being able to test your product or service, will yield higher income, but you need to factor in that you’ll have higher expenses.
The common trend we see is that during the pandemic it was assumed online business would completely takeover, and physical stores would become a thing of the past.
But this last year has seen a resurgence of the brick and mortar store, with many people seeking not just an enjoyable shopping experience, but more of an unique shopping experience for their time and money.
For example, I went into a large Nike store the other day and was blown away by the light displays, screens, large open spaces with glass cases filled with the wildest shoes I’ve ever seen. This is the kind of thing big businesses are gearing towards with store design, the “wow factor.”
Through our research and discussing with experts, alongside going to a few ecommerce expos, we’ve put together some of the brick and mortar statistics below.
5 Best Brick And Mortar Statistics
In 2022 and beyond, we’ve collected the five top brick and mortar statistics to keep you clued in. These will help you spot any trends that are worth applying to your store.
- 94% of customers are heading back to physical stores — in 2022 the US has seen an increase of shoppers return to brick and mortar for some in-person shopping. That leaves a small slice that only shop online since the pandemic online shopping boom.
- There are just over one million brick and mortar stores in the US compared to 1.8 million online stores — this shows that even most businesses probably strive to have both a physical presence as well as an ecommerce channel to boost profits. There are also more online businesses than physical stores in the US, potentially because it’s cheaper to begin online.
- In store spending is increasing 8 percent year-over-year as of March 2022 — compared to 5% at the beginning of 2021, brick and mortar sales are bouncing back.
- Three out of the four consumers in the US are shopping both online and in store — what’s more is that 29% buy online and pickup in store. While a whopping 45% use social media to review and purchase products.
- One third of customers don’t trust retailers that only operate online — out of 4,400 US adults surveyed, 1,496 said they don’t trust brands that only have an ecommerce presence!
How To Use Your Brick and Mortar Store To Its Fullest
There are ways to reap the benefits of your brick and mortar store, ways to keep costs low and customers spending more. Unlike an online store, you’ll need a physical space that you plan to kit out with your branded items.
Something as simple as having store decorations that tastefully match your product packaging or walls in the same color scheme, is a nice way to stand out as a brand. You’ll also need to consider the layout of your shop – where do your customers naturally gravitate to? And what atmosphere will you create to encourage purchases?
In the last year, we’ve seen more stores incorporate movement in design. Large screens that can be seen from outside and draw attention seems to be the consensus in big city’s.
If you can’t afford that on top of the rental of a store, then perhaps you’ll want to use another business that helps you rent a pop-up store instead. This is great for the modern entrepreneur selling online, because it gives customers the opportunity to test out the product.
5 Best Ecommerce Statistics
So as we’ve seen brick and mortar stores are making a comeback, but what about ecommerce? Are online shops taking a turn for the worse or are they also increasing? Let’s find out.
- 98% of consumers read reviews online before purchasing at a local store — it’s a good idea to get some reviews on your ecommerce store, or at least have online reviews for your brick and mortar to attract more customers.
- Ecommerce growth year-on-year was 27% in March 2022 — compared to brick and mortar’s growth of 8%, ecommerce is steaming ahead as the barriers to starting an online store are so small thanks to the help of website builders.
- Over 10% of all retail sales in the US will come from mobile commerce by 2025 — it’s worth creating online stores that are mobile friendly alongside maximizing social media, as the amount of mobile sales increases.
- Online shopping will exceed 1.7 trillion dollars by 2027 in the US — that’s a whopping figure projected by Statista.
- Ecommerce has reached a level of 15% in share of sales as of Q3 in 2022, this is up from 13.4% at the end of 2021 — both ecommerce and brick and mortar retail stores have seen an increase in sales since the pandemic.
How To Use Your Ecommerce Store to Its Fullest
It seems customers will trust those who have a mixture of a physical store and an online ecommerce store. Being able to order goods will add to your customers’ convenience and potentially give you a nice boost in profits.
To get the most out of your ecommerce store it might be worth using a website builder to cut on costs, as you won’t need to hire a web designer.
Next it’s worth crafting your brand colors, logo, and taking professional product photos to shape your website. Always make sure to have the customer in mind, especially with your checkout process – the easier it is for them to buy, the better.
Side by side, ecommerce vs brick and mortar seem to be fairly evenly matched: physcial stores make more money, but cost more, and they’re less popular than online retailers but customers seem to trust them more.
Despite it being previously thought that ecommerce would mean the end for the classic brick and mortar store, it seems that consumers still love the retail therapy experience.
Now that we’ve seen evidence for brick-and-mortar vs ecommerce stores, what does the future hold? How will 2024 affect the retail world?
Unfortunately, we have no precise vision of the next year. But, we can take a close look at the current statistics and make some predictions based on trends. So, here are our Top 5 predictions for 2024 with the statistics to back them up. You’ll have to check in next year to see how many we got right, but we’re feeling pretty confident…
Top 5 Best Brick and Mortar vs Ecommerce Predictions For 2024
- 2024 will see the strongest growth for offline retail since the post-pandemic rebound of 2021 — Brick-and-mortar retail is on track for even stronger growth in the coming year. 80% of all shopping still happens in stores and with annual retail sales totaling $4.9 trillion in 2021, those with physical stores can expect large returns for 2024.
- Global inflation will still be a pressure — Global inflation is going to continue to be an issue many of us will have to deal with going into 2024. 40% of respondents placed inflation as a greater worry than both social inequality and unemployment. Merchants of both types will be advised to keep a closer eye on inflating prices.
- Omnichannel selling will become more important, with 43% of shoppers now researching products on Amazon — Shopping is no longer just in-store or online. Customers can now see a product they want in-store, look it up on multiple sales channels online, and then buy it from a completely different seller. Retailers need to know where their customers are discovering their products and accommodate — 50% of retailers are already planning on offering in-store shipping.
- Reccommerce will revolutionize shopping norms, with 76% of global people consumers preferring to shop from ethical retailers — Reccommerce, the concept of buying used and secondhand products, will become a major player in the ecommerce world. Already, brands like Lululemon already exploring initiatives like “Lululemon Like New,” which encourages customers to buy and sell pre-loved items.
- Livestream shopping will take off, earning $9 billion on TikTok in 2023 —Social media sites like TikTom and Instagram enable users to start a livestream to their audiences. Combined with retail, influencers will be able to showcase products and deals in realtime, creating a shock of demand as the younger demographic of viewers compete to be the first to buy.
When planning ahead and looking at projections of how consumers will likely behave for 2023 to around 2030, it seems like they’re combining their shopping methods.
From the statistics we’ve shared above, you can see that customers use online reviews, social media, and online stores as the new way in which they’re browsing. They are still going into physical stores to make purchases but predictions for the future involve a multichannel approach.
It’s our expert recommendation that if you’re just beginning your business, it is worth creating an online store. You can start with a website builder to begin testing if your product or service flies off the virtual shelves. Then if your business is turning a good profit to either get a settled brick and mortar store or even a temporary pop-up experience to further connect with customers.