The changing face of consumption
U.S. retail has entered a hybrid era—part physical, part digital, all data-driven. In 2025, e-commerce accounts for 22.4 percent of total retail sales, up from 11.3 percent pre-pandemic. Traditional store formats continue to shrink, but omnichannel retailing is expanding total revenue.
Table 1. Retail Sales Trends
| Metric | 2019 | 2023 | 2025 (f) |
|---|---|---|---|
| Total Retail Sales ($ T) | 5.4 | 7.3 | 7.6 |
| E-Commerce Share (%) | 11.3 | 21.6 | 22.4 |
| Store Closures (#) | 9,200 | 4,700 | 5,100 |
Sources: U.S. Census, NRF.
Table 2. Retail Employment and Productivity
| Metric | 2019 | 2023 | 2025 |
|---|---|---|---|
| Retail Employment (M) | 15.5 | 15.1 | 15.0 |
| Real Output per Worker (Index 2019=100) | 100 | 108 | 111 |
Source: BLS, BEA.
Strategic inflection
The boundary between digital and physical retail is dissolving. Brands now design “micro-fulfillment” centers and experiential showrooms to merge logistics with engagement. Retailers using generative AI for pricing and inventory optimization report 8–12 percent margin gains.
Action point
Prioritize last-mile logistics and customer analytics over new store footprints. The winning retailers will act as tech platforms first, merchants second.