July 08, 2025
Most Shoppers Browse Online But Still Buy In-Store
Despite the steady growth of e-commerce, physical stores are far from dead, and closing them en masse may be a costly mistake, according to new insights from the EY Future Consumer Index.
The research urges retailers to rethink their store strategies, not by shutting doors, but by reinventing how those doors open.
Globally, offline retail is still expected to account for a dominant share of total sales: about $14.4 trillion out of $18.9 trillion in 2025, per Euromonitor. More than 90% of consumers still make purchase decisions in-store, even if they start browsing online. While digital channels are gaining speed, stores remain central to how people shop, discover, and decide.
The Backbone of Modern Omnichannel Commerce
Together, physical stores and digital platforms form the backbone of modern omnichannel commerce. When stores do more than simply sell, acting as discovery zones, service hubs, and even entertainment venues, they can boost both loyalty and margins.
Customers of retail media, for example, discover new brands in-store, which allows advertisers to leverage brick-and-mortar locations. Many retailers are already monetising this attention through digital signage, product trials, and AR-powered experiences that blend physical browsing with personalised digital nudges.
Other retailers are pushing the envelope further. Augmented reality mirrors let shoppers virtually try on clothes. AI-based assistants in-store recommend products based on personal data. Grocery chains are opening wellness clinics. And beauty brands are ditching the hard sell in favour of skin scans and tailored consultations.
Retailtainment
This shift toward “retailtainment” is helping retailers turn stores into high-engagement spaces. Cooking demos, fitness classes, and storytelling-led layouts are drawing foot traffic and keeping shoppers onsite longer. Meanwhile, the growing resale and repair economy is turning stores into circular commerce hubs, especially for apparel, electronics, and home goods. It’s a smart play as 72% of consumers say they try to repair rather than replace, and over a third are buying more second-hand.
In short, stores are becoming more than points of sale. As AI, AR, and agent-based digital tools change how people shop online, those technologies can also elevate the in-store experience in ways e-commerce alone can’t.
