The Battle Between Brick-and-Mortar and eCommerce This Holiday Season

s we look ahead towards the holidays, the retail industry faces a familiar yet rapidly evolving rivalry: brick-and-mortar versus eCommerce. The pandemic accelerated online shopping, but physical stores have since made a comeback. Both channels are evolving fast, blending technology, convenience, and experience to win over cautious, inflation-weary consumers. Both digital and brick-and-mortar retailers offer shoppers their own unique advantages.

Consumers are increasingly shopping across multiple channels and nearly three-quarters of consumers plan to use multiple channels to complete their holiday shopping, according to JLL’s 2025 U.S. Holiday Shopping Survey. The most successful retailers this holiday season will be those that lean into their strengths and opportunities to differentiate themselves while also integrating both online and offline channels, blending digital convenience with in-store experience to deliver seamless value at every touchpoint.

Here’s a look at how both sides can appeal to consumers and capture more attention from holiday shoppers.

In-store shopping is expected to play a major role in holiday shopping this year with 92% of consumers planning to spend time in a physical store looking for gifts, according to ICSC’s 2025 Holiday Intentions Survey. Nearly two-thirds of consumers plan to spend more time looking for deals this year, and 67% believe the search for discounts or exclusive offers will encourage them to take more trips to stores. In addition to exclusive in-store offers, retailers are evolving their brick-and-mortar locations beyond shopping destinations.

From in-store pop-up markets and holiday workshops to interactive product demos, retailers are transforming stores into immersive experiences rather than mere points of sale. These experiences can help retailers boost foot traffic and customer engagement during the holidays. For example, Best Buy is providing a number of special in-store offers and experiences during the holiday season. These include extending a partnership with Meta that offers customers an expanded in-store shopping experience with AI glasses to all locations, as well as immersive showcase areas and expert support for technology in over 50 stores.

Nearly 40% of consumers expect brands to personalize their online shopping experience, according to a report by TransUnion. Among those expectations are tailored interactions, product recommendations and marketing that resonate with individual consumers’ preferences and behaviors. Personalization is also a motivator for technology spending by online retailers. Asked about their reasons for spending more on eCommerce technology, 48% of online retailers said that better personalized shopping experiences were a factor along with improved customer experiences and attracting new customers, according to a report from Digital Commerce 360. Retailers are using artificial intelligence to tailor online shopping experiences to individual user behaviors and purchase histories, creating customized product recommendations, dynamic content, and targeted marketing that can help drive customer engagement and increase sales.

Physical stores now play a vital role in omnichannel fulfillment. Services like buy online pickup in-store, curbside pickup, and in-store returns for online purchases have become holiday must-haves. Over half of consumers plan to take advantage of buy online, pickup in-store options, according to ICSC’s survey, as customers appreciate both the convenience of online browsing and the immediacy of physical pickup. Major retailers use physical stores as micro-fulfillment hubs to support eCommerce fulfillment. This not only improves operational efficiency but also drives incremental in-store purchases.

Speed remains one of eCommerce’s strongest assets. The rise of same-day and next-day delivery has forced brick-and-mortar retailers to invest heavily in delivery services, warehouse automation, and local fulfillment centers. Target is expanding its next-day delivery service to 35 major U.S. metro areas by the end of October, giving customers faster options just in time for holiday shopping. The retailer plans to extend next-day delivery to over 20 additional metro areas in 2026. 

The battle between brick-and-mortar and eCommerce is no longer physical vs. digital, but experience vs. convenience and increasingly, both are winning. This holiday season, success will belong to the retailers that blend the human touch of physical stores with the efficiency and personalization of eCommerce and eliminate friction between physical and digital channels to create a singular brand experience. 

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