May 21, 2024

Brick-and-mortar stores are outpacing e-commerce in the United States

Retail business is booming

Brick-and-mortar stores are outpacing e-commerce in the United States

Today, February 15, 2024 | 1:50 pm

Retail stores are currently booming in the USA, such as “Handelsblatt” reported. According to the NRF Retail Federation, the number of stores will reach a new record high of about 1.1 million in mid-2023.

This phenomenon is particularly surprising because retailers have long focused their investments on e-commerce. However, now large companies such as Walmart, Goal, Ulta and Dick's Sporting Goods are investing heavily in new stores. Some online shoppers may wonder: Is it like the Internet giants? Amazon Close to breathing?

Sales in stores are growing faster than online retail sales

The report attributes this return to the realization that brick-and-mortar stores are often more profitable than online stores. In addition, local stores generated greater sales from digital channels.

In fact, research by Capitol One Bank shows that sales at brick-and-mortar stores rose 11.4 percent in the United States in 2022. By comparison, online retail grew only about eight percent in the same year, according to the U.S. Census statistics agency.

Digital brands are now opening their own stores

In addition to already existing stores, more and more digital brands are opening their physical stores. This can be considered as confirmation of the return to the traditional method of selling. The report asks whether the renaissance of brick-and-mortar stores in the United States represents a sustainable development or just a temporary deviation from the trend of online retail.

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No one knows the answer at the moment, the near future will reveal that.

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