The trend: After several years of investing in ecommerce, retailers are focusing on brick-and-mortar investments to capitalize on renewed demand for in-store shopping.
Discount and off-price seize the moment: As inflation drives consumers to trade down and search for deals, off-price retailers are using the opportunity to gain market share. Discount retailers are by far the most prolific store openers this year, with 1,910 new locations announced.
Fast-fashion brands are optimistic: Despite a bumpy year for apparel, Primark and Forever 21 are betting that consumers will continue to turn to fast-fashion brands for trendy clothing at low prices.
Digital natives look for growth: Digitally native direct-to-consumer brands have ramped up brick-and-mortar investment considerably as ecommerce growth slows and customer acquisition costs skyrocket. Both Warby Parker and Allbirds are relying more on physical stores to drive customer awareness, engagement, and sales.
Looking ahead: With more consumers opting to shop in-person this holiday season, now is the time for retailers to experiment with the brick-and-mortar experience. That could mean adding new stores in fast-growing cities like Boise, Idaho, or Salt Lake City, Utah, or using smaller formats to expand beyond malls into suburban neighborhoods. Or retailers can follow Warby Parker’s example and add services to encourage foot traffic.
This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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