Headlines

Brick-and-Mortar Sales Growth Will Likely Lag DTC: Study

Direct-to-consumer sales forecast to grow more than twice as fast as those of stores

Published

3 years ago

October 31, 2023

Shop! Association

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Global e-commerce growth Is expected to achieve a 9 percent compound annual growth rate through 2027, more than double the projected brick-and-mortar retail growth of 4 percent, a new study from Boston Consulting Group concludes.

“After tremendous acceleration throughout the pandemic, many retail and consumer packaged goods (CPG) companies faced a marked slowdown of online sales growth in 2022,” the report notes. “And while consumers are returning to brick-and-mortar shops, e-commerce is still forecast to constitute 41% of global retail sales by 2027, a significant increase from its share of just 18 percent in 2017.”

“While e-commerce is gradually reverting to its pre-COVID trajectory, the landscape has undergone a notable and lasting transformation,” remarked Martin Barthel, a partner and managing director at BCG and a co-author of the study. “The rivalry between emerging entrants and established incumbents has heightened, driven by the purchasing patterns of Baby Boomers and Gen-X, who collectively wield substantial influence over today’s e-commerce sales.”

The survey, which was conducted in the second quarter of 2023, included respondents from 410 retail and 415 CPG companies around the world with revenues ranging from $50 million to more than $10 billion.

Click here for more from the Boston Consulting Group study.

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Shop! Association

The Shop! Association is a global trade association dedicated to advancing the retail environment and experience industry. Its purpose is to empower members to innovate at retail by connecting them with education, insights, and events that support collaboration and forward-thinking solutions. From ideation through implementation, Shop! engages its diverse membership to co-create innovations that help shape the future of retail worldwide. Central to its mission is fostering an inclusive culture that embraces diverse voices and upholds high standards of ethics and transparency. Since 1956, Shop! has empowered its members to innovate at retail through education, insights and events. Learn more by visiting shopassociation.org. Interested in joining the Shop! Association? Reach out to Dina Meindl, Membership Services, for more information today! dina@shopassociation.org.