US e-commerce recorded a record share of 16.9% of total retail sales in the first quarter of 2026. This is according to data from the Census Bureau, compiled by JLL. Despite this increase, over four-fifths of consumer spending continues to be on physical stores.
This development highlights the ongoing relevance of brick-and-mortar retail. Although digital channels are growing, the physical shopping experience remains crucial for the majority of consumers. The figures indicate that a complete shift to online retail is not imminent, and physical store concepts will continue to play a central role.
Growth in online retail and the role of physical presence
The continuous increase in e-commerce's share is a reflection of changing consumer habits and technological advancements. Particularly in segments that benefit from convenience and product selection, online platforms are becoming increasingly established. For retailers, this means adapting their strategies and integrating both channels to create a coherent customer experience.
The dominance of brick-and-mortar retail, which accounts for over 80% of spending, underscores its fundamental importance. Physical stores offer opportunities for direct interaction, product try-on, and immediate availability – aspects that online retail can only simulate to a limited extent. This creates an opportunity for retailers to design their physical locations as experience centres, thereby fostering customer loyalty.
Implications for the property market
For the property market, this results in differentiated requirements for retail spaces. While the demand for purely sales-oriented spaces may change, interest in locations offering high quality of stay is increasing. Investments in the modernisation and reconceptualisation of retail properties are expected to remain a high priority to meet the evolving expectations of consumers. The focus will be on creating attractive environments that enable both shopping and social interaction.
