The Return of the Champions: physical stores outpace online growth

After the e-commerce binge, customers want real physical experiences to fully enjoy shopping.

That the physical store would never disappear, but would instead experience a revival — albeit in different forms and structures — with better performance than in previous years, is an absolute certainty that Claudio Agazzi, CEO and Founder of RetailTune, has always firmly maintained.

And today the data finally speaks clearly: according to the Altagamma Consensus 2023, physical retail will grow by +7.5% in 2024. So while many predicted the imminent end of traditional stores, these very same “temples of commerce” are proving surprisingly resilient. Consumers are rediscovering the pleasure of a tangible shopping experience, challenging the idea that the future is exclusively online. This phenomenon is much more evident in the world of luxury, where the physical store continues to be strategic, thanks also to the adoption of increasingly personalized and phygital approaches that improve consumer engagement.

Digital single-brand retail also continues to grow, but with less brilliant performance than in previous years (with a forecast of +4.5% in 2024).

The human touch and the sensory experience that only physical stores can offer are proving irresistible. The ability to touch, try, and experience the product before purchase adds an indispensable element to the shopping process. Nothing can replace the feeling of browsing a book in a bookstore or trying on an outfit before buying it.

But it’s not only the tactile aspect that works in favor of physical stores. The social side of commerce is coming back into vogue. People are looking for human connections and personalized advice that they cannot easily get online. Physical stores are becoming meeting places, where people can share experiences, discover new products and create memories.

RetailTune, with its forward-looking vision, has always emphasized the importance of finding the right balance between the online and offline worlds. While e-commerce offers convenience and variety, physical stores offer a richer, more engaging experience. The key to success is harmoniously integrating both channels, leveraging the strengths of each and giving consumers the information, products, and services they want, where they want them.

Single-brand retail is also the protagonist of a further evolution: one that sees a sort of fusion between the physical store and the brand’s website in a “transhuman” formula, which goes beyond omnichannel logic. This coexistence of the two channels is made possible by the dialogue established between brand and consumer, which today accounts for around 56% of the market value of personal luxury goods and is set to rise to 66% by 2030.
This transhuman evolution of retail therefore not only places technology at its center but also heightens the centrality of the consumer: personalization and continuous interaction become essential to creating a unique experience that transcends the boundaries between online and offline.

The companies that will win this challenge are those able to embrace this evolution, effectively integrating even the business functions that have always seen digital and physical retail as opposites, pooling the advantages of both with the aim of delivering added value to the consumer.