Brick and Mortar is not Dead

A few weeks ago, I thought I was being efficient. Smart, even. I set out to equip our company with all the hardware we needed: laptops, headsets, phones, the works. The plan? Click my way through it online, lean into the digital age. Because, you know… who even shops in physical stores anymore?

Fast forward 48 hours: I was trapped in a digital labyrinth of tech specs, suspicious reviews, and AI chatbots with the emotional range of a toaster. Analysis paralysis set in. I bailed. Got up, walked into a real store. Within a single day, I had everything I needed, plus advice from actual humans who understood my business needs and didn’t try to upsell me a ring light.

But fate has a sense of humor. I got sick. Really sick. So the rest had to be ordered online. What followed was a slow-motion train wreck: multiple phone calls, wrong deliveries, and delayed shipments, all in the same city. It took two weeks to get what a brick-and-mortar store could’ve delivered in two hours.

And that’s when it hit me: Brick-and-mortar retail is far from dead. In fact, it might just be the most underrated growth engine in the post-pandemic economy.

Courtesy of WIX Media

The Decline Narrative is Over, but the Transformation is just Beginning

The myth of retail’s demise has been, like Mark Twain's death, greatly exaggerated.

For years, retail experts predicted the demise of physical stores. Amazon had already gobbled up the lion’s share of e-commerce, and with more consumers shifting to online shopping, many expected malls to crumble and retail giants to fall.

But here’s the truth: physical retail isn’t dead, it’s evolving, and in some cases, it's thriving. According to a report by McKinsey & Company, 60% of shoppers still prefer to make their purchases in-store due to the ability to touch, feel, and test products. Retailers who have gotten it right are proving that physical stores can still offer a unique experience that digital can’t.

The future of retail is not about choosing one over the other but about blending both physical and digital in a way that elevates the customer experience. Let’s dive into why this fusion is crucial for 2025 and beyond.

What the Data Says

The pandemic was a wake-up call for the retail industry, forcing companies to rethink how they connect with customers. Some surprising stats underscore the importance of physical retail:

• In-store visits accounted for more than 50% of global retail sales in 2024, according to Statista. While e-commerce will continue to grow, physical stores are not going anywhere. They’re just taking on new forms.

• Consumers are more likely to buy a product in-store than online. A 2023 survey found that 58% of shoppers prefer to buy products they’ve physically seen, touched, or tried, even if they research the items online first (this is known as the “research online, purchase offline,” or ROPO effect).

• Customer satisfaction in physical stores remains significantly higher than in e-commerce. In-store interactions with knowledgeable staff boost consumer confidence and drive repeat purchases. According to Forrester Research, 72% of consumers rate the in-store experience as highly satisfactory, compared to just 50% online.

  
  

These numbers show that while the online shopping experience is undeniably convenient, it has its limitations. Physical stores offer instant gratification, human connection, and sensory validation, things that online shopping just can’t replicate.

What Works Now: Retail Strategies for 2025 and Beyond

If brick-and-mortar retail is going to succeed in this new landscape, it’s going to need a strategy that blends the best of both worlds: physical and digital. Here’s what works now:

Investing in Experience-Driven Retail

Retailers who focus on creating unique in-store experiences are seeing huge returns. Think beyond the transaction: make shopping a memorable event. Whether it’s through immersive product displays, interactive technology, or exclusive in-store events, customers want more than just products, they want experiences.

Take Nike, for example. The brand doesn’t just sell shoes; it creates experiences. In stores, customers can test out athletic gear, access personalized training advice, and even customize their sneakers right in front of them. This is an example of using the physical space to amplify the brand's story and engage with the customer on a deeper level. Other examples could be:

• Brand identity-driven experiences (think Canada Goose’s Cold Room)

• Pop-ups, local partnerships, and sensory zones

• Instagrammable installations and share-worthy moments

  
  

The Phygital Future: Fusing Physical + Digital

This is the magic sauce for the modern retail model. It’s not about choosing between physical and digital; it’s about seamlessly integrating the two. Customers want the flexibility to research products online, purchase them in-store, or vice versa.

Here are a few examples of how to make your retail experience "Phygital":

• Self-checkout & cashierless tech (e.g., Amazon Go)

• Mobile payments & crypto acceptance

• Digital loyalty integration across the web and stores

• "Endless aisle" strategies—showrooming offline, buying online (and vice versa)

  
  

Personalized Customer Service

A store can’t be a cold, sterile environment. Customers want personalized service. Mary Dillon, CEO of Foot Locker, said, “The customer experience must be built on the foundation of trust, empowerment, and a sense of belonging.” That’s how brands are winning today. Knowledgeable salespeople who can connect with customers on a personal level and offer tailored advice are invaluable. People may go online for convenience, but they come back to physical stores for the human touch. The key here is to empower your store associates to act as consultants, not just cashiers. Train them, upskill them, and engage them as brand ambassadors. Remember: product knowledge leads to trust, which leads to upsells!

Technological Innovation in Physical Spaces

Retailers are also leaning into technology to enhance in-store experiences. From augmented reality (AR) that lets customers virtually try on products, to smart mirrors that suggest items based on a customer’s previous purchases, the possibilities for integrating technology into physical stores are endless.

Sephora has taken this approach to the next level with their in-store “Virtual Artist” feature, which lets customers try on makeup virtually via an interactive mirror. These technologies are shifting the perception of the in-store experience, making it feel futuristic and seamless.

For other practical applications of technology to innovate your customer experience, think:

• AI-driven targeting by age, interest, location, and behavior

• Personalized promotions and inventory notifications

• Enabling BOPIS, curbside pickup, and in-store returns for online purchases

• Making the transition between channels invisible and frictionless

  
  

Bringing Physical and Digital Retail together

The future of retail lies in the ability to combine the tactile, sensory experience of physical stores with the convenience, range, and data-driven personalization of e-commerce.

A Harvard Business Review study found that brands that provide a seamless, hybrid experience across all platforms (online, mobile, in-store) are the most successful. Consumers expect their experiences to be continuous and integrated, whether they’re browsing online or walking into a store.

A great example is Apple: its stores are designed as spaces for discovery and interaction, while its online store offers a wealth of resources for product research. When combined, these two touchpoints create a unified experience that encourages customer loyalty and brand trust.

REWE in Germany is another standout. Through their “scan-and-go” feature, customers can shop physically, but the digital experience follows them in real time. This fusion of physical and digital helps drive traffic to stores while complementing e-commerce.

Key Takeaways

• Brick-and-mortar retail is far from dead; it’s evolving. The key to success lies in understanding how to integrate the best of both digital and physical worlds.

• Customers still want in-store experiences, where they can touch, try, and get advice. The store isn’t just a point of purchase, it’s an experience.

• Omnichannel retail is non-negotiable. Consumers demand seamless integration between online and offline experiences.

• The human element still matters. Personalized customer service and knowledgeable staff are crucial for creating loyal customers.

• Retailers who innovate and use technology to enhance in-store experiences will lead the charge into 2024 and beyond.

  
  

So, next time someone tells you, “Brick-and-mortar is dead,” smile and nod. Then walk into a store, get what you need in 20 minutes, and be back in time for your next Zoom call with your new noise-canceling headset already on your head.

Physical retail is not just surviving, it’s thriving, evolving, and innovating. And it’s high time we all started rethinking the role of offline experiences in the digital world.