Jacqueline Snyder breaks down why physical stores are making a comeback: only one-sixth of consumer spending happens online. Shoppers want to try clothes on, smell products, and skip the returns hassle that comes with ordering blind.
Only $1 out of every $6 is spent online. There's an interesting thing that's happening. At one point, the retail environments, malls were dying. Everyone was like, hey, we're not gonna go to malls anymore. We're gonna buy online, TikTok and Instagram. And everyone went to e-com. Malls are making a comeback. 5 out of $6 that people, customers spend are being spent in retail environments, in retail stores. People in a world of AI and digital are looking for human experiences. People can think about buying online and they do, but there's also that level of like, how many of us buy and then have to return, right? So sometimes it's like, it's just easier if I go and try it on in real life, if I could smell it in real life. So I'm not saying not to be online, but there is a big shift back to in-person.
