Brands Briefing: As AI reshapes retail, brands are investing even more in stores
81% of U.S. retail dollars still flow through physical stores as of 2026, with 35% of holiday budgets expected to go to brick-and-mortar. Brands like Cotopaxi, Brunt, and Pacsun are aggressively expanding store counts heading into 2027.
This reinforces competitive pressure on pure-play marketplace sellers as DTC brands build omnichannel moats — physical stores drive discovery and loyalty that Amazon listings alone cannot replicate.
Online-only marketplace sellers face a structural share ceiling as Gen Z actively prefers in-store discovery — even for brands they find online first. Marketplace brands without a physical touchpoint or retail wholesale deal risk losing brand-building ground to DTC competitors expanding into stores.
Operational Impact
This story may require teams to revisit workflows, monitoring, or platform assumptions.
Bottom Line
81% in-store spend means marketplace-only brands are fighting over 19%.
Source Lens
Industry Context
Useful background context, but lower-priority than direct platform, community, or operator intelligence.
Impact Level
low
81% in-store spend means marketplace-only brands are fighting over 19%.
Key Stat / Trigger
81% of U.S. retail dollars spent in physical stores as of 2026
Focus on the operational implication, not just the headline.
Full Coverage
Executives at Rhone, Anthropologie, Kohl's, Brunt and Crocs weigh in on why brick-and-mortar is still standing strong heading into 2027.
Full article available at the original source. Read the complete story at Modern Retail →
Check your Amazon/Walmart brand analytics for repeat purchase rate -- if below 20%, you're losing customers who would have been retained by in-store brand experience that builds loyalty.
In the next 30 days, evaluate whether a wholesale pitch to Target or Walmart stores (not just .com) makes sense as a brand awareness lever, especially ahead of holiday where 44% of shoppers buy last-minute in-store.
Original Source
This briefing is based on reporting from Modern Retail. Use the original post for full primary-source context.
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