Retail’s Comeback: Why Brick-and-Mortar Is Flexing on E-Commerce in 2025
Remember those bold predictions? “Retail is dead!” “Stores are history!” “E-commerce will conquer all!” Yeah, about that… they were wrong. Dead wrong!
Retail’s revival is now one of the biggest plot twists in the business world. What was supposed to be a slow fade into irrelevance has turned into a full-blown renaissance. The future isn’t touchless, faceless, and purely digital. It’s happening in real life—on real streets, in real stores.
The Retail Apocalypse That Never Happened
Let’s rewind to 2020. The world flipped upside down, and online sales skyrocketed from 11.9% to 16.4% of total retail. Everyone was stuck at home, buying everything from groceries to gym equipment online. Headlines screamed that e-commerce had finally buried brick-and-mortar for good.
But then… people got restless. By mid-2022, online sales had dropped back to 14.2%. That initial spike? A temporary blip. Physical retail quietly found its groove again. Fast forward to today, and we’re seeing something few expected: a retail real estate boom.
Open-air shopping centers now have vacancy rates as low as 6.2%—the tightest since 2006. Retail landlords are flexing their newfound power, raising rents on lease renewals. Burlington, Ross, TJX? Together, they opened 339 stores last year. Walmart’s betting on 150 more over the next five years. Even Nordstrom Rack, that chic discount spinoff, saw an 8.5% jump in store count.
The message is loud and clear: retail didn’t just survive—it’s thriving.
Why the “Death of Retail” Was Always a Lie
Here’s the thing. Those gloomy forecasts about retail dying missed something huge:
Shopping isn’t just about transactions—it’s about experiences.
Yeah, clicking “Add to Cart” from your couch is nice. But people want more. They want to touch fabrics, smell candles, try on shoes, and feel the buzz of being out in the world. Shopping is as much a social activity as it is a practical one. You can’t replace that with a screen.
During the pandemic, people tolerated being stuck indoors. But as soon as they could, they wanted to get out, see people, and do things. Retail stores weren’t just waiting—they evolved, offering blended online-offline experiences that consumers craved.
The New Face of Retail: Leaner, Smarter, More Strategic
Of course, not all retail is winning. Enclosed malls? Struggling. Legacy chains weighed down by bad decisions? Filing for bankruptcy (RIP Party City). But the retailers that understand today’s game—those who can give people a reason to show up—are thriving.
Open-air centers are hot because they offer convenience, fresh air, and a sense of community. Discount chains like Ross and Burlington are booming because, guess what? Even in 2025, people still love a good bargain. And landlords? They’re sitting pretty because demand is high, but new development is low. Scarcity equals power.
Michael Hartshorn, President of Ross Stores, summed it up: “Real estate is tight, and there’s more interest than ever from other retailers in the spaces we like.” Translation? If you’re not already in the game, good luck getting in.
What’s Next? Hybrid Dominance
E-commerce isn’t going away, and no one’s pretending it will. But what we’re seeing is balance. Online shopping serves convenience. Physical retail serves experience. Smart retailers aren’t picking sides—they’re blending both. Buy online, pick up in-store. Shop in-store, get it delivered. It’s no longer about either-or; it’s about both-and.
So, is retail dead? Hardly. It’s evolving into something better: a hybrid beast
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