A recent study by Forrester highlights a significant projected growth in global e-commerce, expecting online sales to reach $6.8 trillion by 2028, capturing 24 percent of worldwide retail. Despite this surge, $21.9 trillion of the anticipated $28.7 trillion in total retail sales will still occur offline, underscoring the undiminished importance of physical stores.
In the U.S., e-commerce is predicted to hit $1.6 trillion by 2028, representing 28 percent of total retail sales. Similarly, in Western Europe, online retail sales are set to increase from $508 billion in 2023 to $773 billion in 2028. Jitender Miglani, a principal forecast analyst at Forrester, notes that advancements like online marketplaces, social commerce, and direct-to-consumer platforms will fuel this growth. Despite the promising outlook for online retail, physical stores are not going extinct but are instead facing a necessary evolution to remain relevant. The retail landscape is adapting to the preferences of younger shoppers who favor seamless, unique shopping experiences. Brands like Sephora exemplify success in this area, integrating online and physical sales to provide comprehensive, engaging customer interactions.
The report indicates that a robust omnichannel strategy is essential for retailers, as evidenced by some facing closures due to failing to integrate digital enhancements effectively into their physical operations. The challenge for retailers lies in creating cohesive shopping environments that cater to consumers’ evolving demands, ensuring longevity in a rapidly changing market.
