Holiday 2024 Insights: The Continued Relevance of Brick-and-Mortar Retail

Despite predictions of their decline, 2024 holiday data indicates brick-and-mortar stores are proving they’re here to stay. But why exactly are some physical spaces still thriving? Here are three reasons why shoppers continue to embrace in-person shopping experiences.
(Note: While omnichannel strategies and adapting to consumer behavior trends are essential for long-term success, those topics deserve a post of their own.)

Reason 1: Lower Return Rates
Saleforce reports the rate of online returns is up 28% from past holiday seasons, resulting in $122 billion globally from last year. 

Why this matters:
Online shopping encourages consumers to buy multiple sizes of the same products or participate in “try-on hauls”, which increases the returns decreasing your profit margin. Brick and Mortar locations allow shoppers to see, touch and compare products in person, significantly lowering the likelihood of returns.

Reason 2: Enjoyable Experience
A study by Ryder System Inc. found that 61% of consumers shop in-store simply because they enjoy the experience.

Why this matters:
Shopper value the ability to try-on items as well as the instant gratification of immediately leaving with their purchase. Physical stores also encourage impulse purchases and quicker decision-making, making them a win-win for both consumers and retailers.

Reason 3: Brand Connection
According to FitSmall Business, 6 in 10 shoppers are going to physical stores for new experiences and community. 

Why this Matters:
Shoppers want more than a transaction— they are looking for a meaningful connection and brand aligning with their values. Retailers that host workshops, community events, or provide additional perks like coffee bars create personalized experiences that encourage deeper connections and increase brand loyalty.

Conclusion: Brick-and-Mortar Stores Are Evolving, Not Disappearing
Brick and Mortar stores provide an experience that online shopping cannot replicate. Lower return rates, the joy of in-store shopping, and the growing desire for community all highlight the unique value these spaces provide. Retailers that adapt to these trends by reimagining their physical spaces and integrating them into omnichannel strategies will thrive in the years to come.