Online shopping was supposed to take over the world – so why are more people demanding access to physical stores? The numbers tell an interesting story about the need for omnichannel strategies.

Here’s a fun question to kick off your day: what is something that you refuse to buy online?

For me, it’s cosmetics. I don’t care how many swatches I scroll through or how many five-star reviews a product racks up; if I can’t test that lipstick or foundation on my actual skin, it’s a hard no. I need to see the colour in real life, feel the texture, and confirm that I won’t end up looking like I lost a bet. So no matter how many shades are available with a single tap, I’ll always choose the makeup counter over the checkout button.

But when it comes to everything else? Shoes, clothes, homeware, groceries – you name it, I’m happy to hit Add To Cart as long as there’s an easy return policy. Nine times out of ten, the sheer convenience of online shopping wins in my books.

If everyone thought like me, physical stores would quickly become a thing of the past. But with sentiment shifting towards “click-and-mortar” or omnichannel rather than purely online shopping models, it’s clear that sometimes you just need to shop the old-fashioned way.

After seeing this video on TikTik recently, I started wondering if the meteoric rise of online giants like Shein and Temu, with their notorious delivery snafus and quality slip-ups, is nudging us back to the stores. Maybe the thrill of unboxing isn’t worth the gamble when you can see and feel the product before you buy. Or perhaps, after years of one-click impulse buys, people are finally remembering that some experiences just can’t be replicated online.

Armed with some fresh insights from the VML Future Shopper Report of 2024, I went digging to figure out if this shift in buying habits is just a blip or a broader change in consumer behaviour. 

Online shopping by the numbers

For years, it looked like online shopping was on an unstoppable rise. But now the numbers are telling a different story. After peaking during the pandemic (no surprises there), eCommerce seems to be settling into a new rhythm. 

In 2023, 58% of global spending happened online. Today, that number has dipped to 53%. Sure, there are projections that say it’ll climb back to 60% over the next five years, but this little slowdown we’re seeing right now raises some big questions.

Are people ditching online shopping in favour of physical stores? Are rising living costs making in-person shopping more appealing for essentials? Or is this less about money and more about craving a hands-on, real-world shopping experience? There’s also the possibility that this is just a hangover of COVID lockdowns, with people specifically wanting to return to the mall.

One of the most surprising trends is that it’s not just older generations leading the charge back to physical stores. The biggest drop in online spending actually comes from 16- to 24-year-olds, who went from allocating 62% of their spending to online shopping down to 56%. This challenges the long-standing assumption that digital natives – raised on Amazon, fast fashion apps, and same-day delivery – would be lifelong loyalists to eCommerce. Instead, it seems that even the most tech-savvy shoppers are rediscovering the value of in-person retail, whether it’s for the social aspect, the ability to try before they buy, or simply avoiding the hassle of unpredictable shipping and returns.

When surveyed, two-thirds (65%) of shoppers said that they believe brands need to do a better job of delivering the online experiences they want. This number is up from 61% in 2023. And it’s not just about the checkout process either – more than half of shoppers say retailers don’t fully understand the steps they take before making a purchase, a frustration that’s also growing year-over-year.

On a positive note, returns are down from 19% last year (and 23% in 2022) to 17%. This could signal improvements in sizing tools and product descriptions, or it could reflect the growing trend of retailers cracking down on excessive returns, with added fees and penalties.

Bottom line: While online shopping isn’t going anywhere, its dominance is no longer a given. As physical stores maintain their ground, the competition for your shopping habits is still very much alive.

It’s also worth highlighting that different markets are at different levels of maturity. The online market in the UK is far more developed than in South Africa, leading to a plateau effect on a global level that isn’t necessarily observable here at home.

Still, we have a useful local case study to consider.

Yuppiechef: the poster child for omnichannel

Does it always have to be a competition between online and in-store though? Local darling Yuppiechef is a textbook example of why that doesn’t have to be the case; in fact, online and offline retail can work together beautifully. What started in 2006 as a purely digital kitchen and homeware store has since evolved into a full-fledged omnichannel business with 21 physical stores dotted across the country.

At first, Yuppiechef was all about seamless browsing, easy online checkout, and delivery straight to your door. But as consumer habits shifted, the brand adapted. In 2017, the brand introduced physical stores, giving shoppers the option to see, touch, and test products before committing. For a brand like Yuppiechef, which curates a selection of top-tier (and in some cases aspirational) kitchen goods, giving customers the opportunity to feel the weight of a cast iron pan or test the balance of a premier chef’s knife was a masterstroke. As a result, many customers who were eyeing a kitchen investment were swayed off the fence by what they saw in-store, or conversely, saw something new that they liked in-store and ordered online for home delivery. 

Yuppiechef’s omnichannel approach has undoubtedly paid off. In 2021, it was acquired by the Mr Price Group for around R470 million, cementing its status as a major retail player. While we don’t have access to their exact financials (they were never a listed company and disclosure was light at the time of the deal), we know from statements made by Mr Price after the deal that Yuppiechef contributed R296.2 million in revenue between August 2021 and April 2022, as well as operating profit of R19.9 million. More recent disclosure tells us that Yuppiechef is growing sales by double-digits, so the deal seems to have worked. Not too shabby for a kitchen accessories business. 

The future is omni

In reality, the only ones pitching online against in-store are the retailers themselves. Most consumers aren’t choosing sides. Instead, they’re blending both experiences to get the best of both worlds. A growing 64% of global shoppers now say they prefer to buy from retailers with both an online and physical presence, up from 60%  in 2023. And they’re not just splitting their purchases between the two – as we saw from the Yuppiechef example, they’re using them together in ways that make shopping more seamless and intuitive.

A massive 72% of consumers research products online before heading to a store to make their final purchase. That statistic proves that the future of shopping isn’t about online vs. offline; it’s about an interconnected experience where each channel plays a role. A retailer’s website might be the first stop for price comparisons, product specs, and customer reviews, but the final decision often happens in-store, where customers can see, touch, and try before they buy. Conversely, many shoppers visit a store to check out an item in person, only to order it online later – sometimes from the same retailer, sometimes from a competitor offering a better price or faster shipping.

For brands, this means that simply having a website and a storefront isn’t enough. The most successful retailers are those that merge their digital and physical spaces in innovative ways. Think interactive displays that let shoppers browse online-only inventory in-store, AI-powered recommendations that carry over from website searches to in-person shopping, or apps that let customers scan an item on the shelf and instantly see reviews, styling suggestions, or availability in different sizes and colours.

Retailers that get this right are the ones turning shopping into a frictionless, engaging experience, one that gives customers the flexibility they want while maintaining the human touch that builds trust and loyalty. The future of shopping isn’t about choosing between digital convenience and in-person interaction; it’s about blending both in a way that feels natural, intuitive, and, above all, effortless.

About the author: Dominique Olivier

Dominique Olivier is the founder of human.writer, where she uses her love of storytelling and ideation to help brands solve problems.

She is a weekly columnist in Ghost Mail and collaborates with The Finance Ghost on Ghost Mail Weekender, a Sunday publication designed to help you be more interesting. She now also writes a regular column for Daily Maverick.

Dominique can be reached on LinkedIn here.