Stores Aren’t Dead. They’re Evolving

Bold predictions say online will swallow retail whole, but the numbers and human behavior tell a more compelling story. We dig into fresh data and lived shopper habits to show why digital is winning the journey while stores still win the moment that matters. From current Census figures placing pure e‑commerce near 16% of sales to projections that cap it around 29% by 2029, we ground the conversation in facts rather than hype.

We explore the quiet revolution of digital influence: product discovery on social, research on phones, and ratings that build trust before a shopper ever walks in. By 2027, nearly two‑thirds of U.S. retail sales will be digitally influenced, and that changes everything for how retailers design the path to purchase. We break down what that looks like on the floor, accurate local inventory, fast and reliable BOPIS, curbside options, and associates equipped with tools that bring a shopper’s online journey into the aisle.

Generational insights add texture. Gen Z embraces the social, tactile rush of in‑store discovery. Millennials lean digital but drive BOPIS growth and in‑store pickups that spark attachment sales. Gen X and Boomers rely on physical locations for groceries, home goods, and big‑ticket items where feel and trust matter most. The through line is clear: the strongest retailers blend mobile apps, personalized recommendations, and flexible fulfillment with engaging, reliable store experiences.

Our takeaway is simple and actionable: stop framing retail as e‑commerce versus stores. Build for digital plus stores. Align content and shelf, sync pricing and availability, and measure blended KPIs like digitally influenced sales and pickup conversion. 

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Chapters

• 0:07 Welcome And Topic Setup
• 0:40 What The Data Really Shows
• 1:39 Digital Influence On Store Sales
• 2:33 Generational Shopping Behaviors
• 3:42 Reinventing Stores With Digital

Transcript

SPEAKER_00: 0:07

Well, hello everyone, and welcome to Scott's Thoughts. I'm Scott Benedict. You know, there's been a lot of buzz recently about comments made by Amazon CEO Andy Jassy suggesting that e-commerce will eventually take over all of retail. Now it's an interesting statement, but the data tells a different story and one that's far more nuanced, I think, frankly, and encouraging for physical retailers or for retailers who operate with both stores and online. So let's let's unpack that a little bit. Even according to the U.S. Census Bureau, only about 16% of all retail sales happen online in totality. In other words, an online purchase who begins and ends online and results in delivery to home. Now, even if you include the biggest holiday periods, e-commerce peaks around 20 to 20%. That's pure uh e-commerce. So the idea that online shopping is going to replace uh physical stores doesn't line up certainly with that data point. Now, if you go further and look at some data from companies like uh Forester Research, they project that by 2029, e-commerce will represent roughly about 29% of U.S. retail. That means still that seven out of ten store, seven out of ten dollars, excuse me, will be spent in store. That's where really where the transformation, I believe, is starting to happen. And that's in the area of what I call digital influence. Uh purchases that even if they end in a physical store, began with a digital element. And here Forrester has some interesting data. They estimate that by 2027, nearly two-thirds of all U.S. retail sales will be digitally influenced, meaning consumers start their journey online, research on their phones, or check reviews on their desktop computer, or in some cases, discover products uh on social media before ultimately completing a purchase in store. So in my mind, digital has already won the journey, but not all transactions happen during uh uh in in digital. In some cases, they happen at a register in a physical store. Now let's talk a little bit uh about generational trends because even the youngest shoppers, those that we may view as more digitally savvy, perhaps, they aren't abandoning stores either. Gen Z, Gen Z shoppers may be what we call digital natives, but st surveys show that over 60% of consumers in that age group prefer discovering new products in physical stores. They value the social aspects or social elements of the experience, the ability to touch and try on products, and the instant gratification of encountering a product and walking out the door with a purchase right then. Millennials uh deal or tend to lean more uh digital, but they're also the biggest users of buy online, pick up in store, which still drives them to a physical store location. And for Gen X and boomers, stores remain essential, uh especially for product categories like groceries or home goods or big ticket uh purchases where they trust and prefer that uh that interaction with a product. So what's really happening, I think, in my view, is not the end of stores, it's the reinvention of them. Retailers that blend digital discovery with in-store experiences from mobile apps to personalized recommendations to BOPUS, buy online, pickup in-store, uh, they're the ones that are really winning share. And so the future isn't really about e-commerce versus stores. It's digital plus stores, my mind. So while Amazon uh may see a future where everything is delivered to your door, the rest of retail, I think, is really building a future well where digital empowers the in-store experience. It doesn't replace it. And that, in my mind, is where the real opportunity lies for all of us in the retail community. That's what I've been thinking about. I'm Scott Benedict.