Ditching Your Store for Full-Time E-Commerce? Think Again
Last year, US retail sales were up 19.3% from 2020, even with the double body-slams from rising inflation and the still-slogging supply chain. Much of that number came from e-commerce transactions. Even in 2021, the pandemic had many brick-and-mortar retailers opening e-commerce channels—and based on the sales spikes those efforts had, some are considering dropping their physical locations entirely. But if that's you, then you should put your thinking cap back on. Physical retail is rebounding.
Recent data shows that the skew toward e-commerce is righting itself, and that consumers are becoming very comfortable with in-store shopping again. In 2020, your town's retail neighborhood probably looked a little dilapidated, with boarded-up shops, closure notices, and store clerks with enough spare time on their hands to make their own coal. That's changed.
According to a new report by Morning Consult that surveyed more than 8,000 adults across the US as well as Australia, China, Europe, and Mexico, store closures are down a whopping 65% over last year. That should have forward-thinking brick-and-mortar retailers working on in-store shopping experiences, space optimization, and synergies between their physical locations and their new e-commerce resources.
In the first month of 2022, Morning Consult's research shows US retailers alone announcing 1,910 new store openings, on top of 2021's data that indicated significantly more store openings than closures year over year. The key for physical retail was and is convenience. If the product is in stock, it's still more convenient to go get it rather than purchase it online and wait for shipping fulfillment.
The rise in physical store shopping means retailers should start focusing
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