Despite years of e-commerce growth, physical stores remain the center of retail as brick-and-mortar stores continue to drive the majority of retail sales. In the last 15 years, the value of in-store sales declined just once, in 2020, during pandemic lockdowns. That dip didn’t last long. According to new research from Colliers, physical stores are back in full force and they’re carrying more weight in the shopping experience.
Physical Stores Still Drive Sales
The study found that physical stores still account for 76% of core retail sales. E-commerce isn’t disappearing, but it’s not growing at the pace it once did. That’s because physical stores do more than just sell. They support online retail growth, drive traffic and solve logistical headaches.
Even direct-to-consumer brands that started online now rely on retail locations, either their own or through wholesale partners. Even brands like Nike, which once pulled away from retailers, are now putting more product back in physical stores. Retailers with brick-and-mortar locations also get a competitive edge. They can offer in-store pickup, ship-from-store options and smooth returns, services that most online-only brands can’t match.
Image 1: Curbside services like Target Drive Up are creating an omnichannel presence for retailers. Image 2: Large backlit SEG fabric signage displayed in Under Armour retail store.
The Rise of the Omnichannel Store
In today’s market, sales numbers don’t tell the whole story. In 2024, physical stores supported over 30% of online sales through curbside pickup, in-store collection and store-to-door shipping. That number has climbed steadily over the years, from 7.9% in 2015 to over 30% in 2024. As convenient as online shopping is, it does have its pitfalls. 64% of shoppers say online delivery fees are getting too high, while 77% don’t want to pay for returns. Stores solve both problems by giving customers more flexibility, more control and fewer fees.
There’s another trend to watch: shop-in-shops. These mini-brands inside larger retailers bring variety and excitement to the retail floor. They’re great for brands that want to expand without opening standalone stores and great for retailers that want to keep foot traffic high.
What This Means for Retail Stores
All of this reinforces the fact that brick-and-mortar isn’t fading, it’s evolving. And standing out in-store matters more than ever. This is where retail store signage plays a huge role. Great retail signage turns a shopper’s glance into a stop. It guides people through your store, builds your brand and connects the physical space to the digital story through retail design. Whether it’s a shop-in-shop, a national rollout or a single storefront, custom signage helps create a better shopping experience.
Image 1: Large SEG fabric display at The North Face brick-and-mortar location. Image 2: Retailers like Warby Parker work in tandem with their online and physical store strategies to support each other.
Retail’s Real Future
Brick-and-mortar stores aren’t going anywhere. The real winners will be the retailers who stop thinking in terms of online versus in-store. Stores support digital and digital drives people to stores. If you want to win that connection, start with how your store looks and feels. 40 VISUALS can help you create visual merchandising displays and a retail store design strategy that actually works.
