Dive Brief:
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For most retailers, brick-and-mortar stores are an essential part of e-commerce growth, and online sales are key to physical retail success, according to a report by Moody’s Investor Services.
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E-commerce is growing but remains 6% of total retail sales, with the potential to grow to 7.1% in two years and possibly into double-digits within five years. Those totals may be larger than what available data suggest, according to the report.
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Despite the continuing importance and growth in e-commerce, that is unlikely to lead to massive closures of physical stores, according to the report.
Dive Insight:
The report by Moody’s indicates that while e-commerce is hardly new, many retailers are failing to realize its potential. Still, there is an essential place for physical stores, underscoring that today’s retail world is one where shopping happens in many places, and in many ways.