Contrary to popular belief, brick-and-mortar stores have not succumbed to the Internet, and they are far from dead. Over the last several years, leading retailers have been adapting their business models to keep pace with a changing landscape — rethinking their physical presence in new and creative ways, using big data to better understand their customers, and harnessing the power of brands in order to raise their profile.
Meanwhile, industry data published in the Robin Report shows that the annual growth rate of e-commerce is slowing: from 30 percent in 2004 to roughly 16 percent in 2014, and is projected to be less than 10 percent in 2018. The Robin Report also says that in 2014, about 80 percent of sales took place in stores, whereas e-commerce represented only 6 percent of the US$4.5 trillion spent in the U.S. alone. In addition, half of these e-commerce sales took place in a brick-and-mortar shop, for example, through emailed offers collected by shoppers in-store.