Brick-and-Mortar Retail Is Thriving for Brands That Evolve

There’s always a lot of noise in retail. What’s hot and what’s not. Economic worries. Supply chain stress. How to appeal to younger shoppers. And the older ones too.

So, here’s a bit of good news for retailers, both old and new. Brick-and-mortar stores remain central to shoppers of all ages, and that is unlikely to change. Physical stores still account for the vast majority of core retail sales — 76.2%, according to Colliers and Global Data Analysis — and that percentage is expected to remain over 75% over the next five years.

That said, the retailers who will thrive going forward will want to evolve and anticipate how their customers will evolve too. So, here are five critical focuses for retailers to create the best possible customer experience in 2025 and beyond, rooted in experiential, discovery-driven store design and execution.

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1. Intuitive wayfinding and a cohesive retail experience
2. Seamless physical-digital integration
3. Experiential store environments
4. Localization and personal relevance
5. Hospitality-driven service models

Download the infographic summarizing core insights.

1. Serve all trip missions with intuitive wayfinding and a cohesive retail experience

Some customers are in a hurry. Some are not. But both can walk out of your stores satisfied and certain to return. Or unsatisfied and wondering about other shopping options.

Intuitive wayfinding that connects customers with the products they want is Point A for a great store experience.

You want customers to easily find products they are looking for, whether it’s a single item they don’t typically buy or parts of a long, regular list. You also want them to see well-presented products as they navigate your stores that inspire impulse purchases and increased basket size.

If your customer is a frazzled parent with a teenage child looking for a specific shirt that is way-cool but is not in stock in the critically important colors of magenta and lime green, he will appreciate the associate who quickly sets up an in-store pickup or a same-day delivery to his home that afternoon.

“Physical stores still account for the vast majority of core retail sales — 76.2%, according to Colliers and Global Data Analysis — and that percentage is expected to remain over 75% over the next five years.”

Or, on a Saturday afternoon, that same customer, shopping list or not, might be walking slower and browsing. He may see something his wife would love and think that her birthday is just a month away and this could solve that annual last-minute panic… but first he checks his phone and reads some reviews. And… boom! A coupon appears.

Who knew spending money could be so gratifying?

Customers who are confident and happy as your store fulfills their trip missions become loyal to your stores and potential brand advocates.

2. Seamless physical-digital integration

Some of the shopping scenarios above weren’t even part of the available experience 10 years ago. Or, at least, weren’t popular among the shopping masses.

When speaking of “seamless physical-digital integration,” we’re discussing what many retailers now view as table stakes, even if their current systems are inconsistent and often buggy.

As noted in Colliers’ report, “E-commerce and brick-and-mortar aren’t competitors; they are collaborators. Retailers that lean into the seamless blend of digital and physical experiences are poised to lead — not just in 2025 but well into the future.”

BOPIS (Buy Online, Pick Up In-Store) is a revenue driver for retailers. And it’s only going to get bigger and, of course, more competitive.

In 2024, physical stores supported over 30% of online retail sales through fulfillment methods like BOPIS or direct shipping from stores. These and mobile-first experiences are becoming essential in physical stores, blending the convenience of e-commerce with the tactile experience of in-store shopping.

Customers expect store environments to connect seamlessly and intuitively with digital tools, from mobile phones interacting with store décor elements to printed QR codes on displays to communication with wayfinding signage.

Retailers should lean into technologies that simplify and upgrade the shopping journey. Personalization powered by AI, real-time inventory visibility and unified loyalty programs across channels ensure that customers feel recognized and valued wherever they shop.

3. Experiential Store Environments

Shoppers increasingly view physical stores as discovery-driven environments, destinations for inspiration and interaction, not just transactional spaces. Younger generations (particularly Gen Z) prefer in-store shopping but also expect socially connected, aesthetically pleasing spaces with digital integration.

The evolution here is retailers designing stores that immerse customers in brand storytelling and product discovery. This includes strategically integrating interactive displays, demo zones, workshops or curated spaces where customers can touch, try and explore. And socialize and share.

Studies show multisensory design increases time in-store and brand recall, but executing and maintaining an optimized version of that is a complex endeavor.

This is about support that is both fun and practical when making purchase decisions: for example, beauty retailers offering in-store skin analysis or sporting goods brands setting up product test areas. Initiatives like these engage both individuals and friend/family groups, fostering upgraded experiences for both mission-driven and social shoppers.

By transforming stores into experiences, retailers deepen emotional connection and differentiate from purely digital competition.

4. Localization and personal relevance

One-size-fits-all retail is fading fast. While branding requires consistency, diverse store footprints and merchandising flexibility foster varied and ongoing customer connection.

Customers expect stores to reflect their community and lifestyle, whether through curated assortments, local partnerships or design elements that resonate regionally.

Some customers want to hear about a retailer’s sustainability efforts, while others may not. Some care about local sports teams or a new concert series. Others won’t.

Walmart located in Elm Springs, Arkansas. The entry way welcomes locals with inviting interior graphics.

Retailers should develop flexible store formats and modular displays that allow easy adaptation for localization and other initiatives while also not burdening shoppers who just want to buy things.

Balancing consistent brand identity with authentic local relevance while maintaining practical and branding touchpoints makes stores feel personal and purposeful, not corporate.

5. Hospitality-driven service models

The role of store associates is shifting from task-driven clerks to brand ambassadors and concierge-level hosts.

Customers now expect warm, knowledgeable guidance, whether that means help navigating digital tools, offering product expertise or facilitating fast and frictionless checkout.

Retailers should invest in training, retention and empowering associates with mobile tools so they can confidently assist on the floor and represent your brand in positive ways.

Further, layering hospitality into store design (lounges, seating, cafés, charging zones, etc.) elevates the visit from errand to experience, encouraging dwell time and repeat visits.

Here are four major trends shaping c-store design today and how you can implement them at scale across diverse store footprints and regions.

One of the best examples of this in retail is the significant upgrading of the convenience store experience.

The future of retail is not about choosing between efficiency and experience. It’s about integrating both, in-store and online.

Retailers who prioritize elevated wayfinding, experiential design, digital integration, localization and associate hospitality will not only meet evolving shopper needs but also build spaces that customers seek out, remember and share.

In a crowded marketplace, the best customer experience becomes the most powerful competitive advantage.