Small Retailers Relying on In-Store Sales Are More at Risk

small retail shop owner

Small retailers that make most of their sales via brick-and-mortar are the most at risk of closing, compared to those that leverage an omnichannel strategy or that rely primarily on eCommerce channels, PYMNTS Intelligence reveals.

By the Numbers

The study “Main Street SMBs’ Revenues Grow Faster than GDP,” a PYMNTS Intelligence exclusive report, drew from a survey of more than 500 Main Street small and medium-sized businesses (SMBs) in January that examines how these businesses are performing amid economic challenges.

graphic, retail sales

Supplemental research from the report revealed that 9% of firms that sell predominantly in physical stores are at risk of closing, compared to 7% of those that rely on eCommerce and less than 5% of those that have a roughly even split between digital and brick-and-mortar channels.

A Deeper Dive

As Alex Burgin, vice president of, told PYMNTS’ Karen Webster in an interview, businesses of all sizes need simple, clean and easily navigable websites with simple, intuitive shopping carts.

“Whether it’s a lemonade stand on the side of the road, or a complex PC computer company, every business needs to accept payments,” Burgin said. “And at the core, every business needs to think about what their digital presence looks like and how they interact with their clients.”

Consumers tend to spend more via digital channels. A PYMNTS Intelligence survey of nearly 2,700 U.S. consumers found that the average money spent per online purchase is $127, while in-store purchases amount to $87.

Plus, consumers that engage across digital and physical channels tend to spend the most, as grocery giant Kroger shared on its latest earnings call.

“Customers value the ability to shop on their own terms with zero compromises and we are increasing the number of omnichannel households in our ecosystem,” Kroger Chairman and CEO Rodney McMullen told analysts. “Customers who shop both in-store and online spend three to four times more compared to in-store only shoppers.”

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