Although 2024 saw a rash of retail closures by some big names, there are signs of optimism with the number of new store openings being announced. These include 7-Eleven’s plans to build 500 stores between 2025 and 2027, Dutch Bros. coffee’s plans to open 160-plus sites in 2025, and 800 stores for Aldi by the end of 2028, according to reports in Chain Store Age. Even Bed Bath & Beyond is getting physical, through a deal with Kirkland.

Cross-channel retail (physical and online) also continues to benefit sales. In a recent global study by Zebra, 71% of shoppers said they make most of their purchases by integrating physical and online locations, with respondents registering 85% shopper satisfaction as the retail boundaries blur. In addition, 75% of shoppers said they prefer to shop with online merchants that also have brick-and-mortar locations.

Foot traffic is also on the upswing, according to Placer.ai’s Mall Index. Following a slight decline in September, visits to indoor malls, open-air shopping centers, and outlet malls rebounded through October, on par with 2023 levels. 

The 2024 Wood Industry Almanac is sponsored by IMA Schelling Group.

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Quick Stats (Includes items not shown in print.)
• Why shop in-store? The 2024 Annual Ryder E-commerce Consumer Study said 61% of consumers enjoy trying on products or in-person comparisons. 35% don’t want to wait for shipment, and 15% go to stores to avoid package theft.

• ICSC notes a “halo” effect between physical stores and online sales. Opening a store boosts online sales in the area surrounding that location by 6.9% on average in the immediate weeks following the store’s opening. The converse is also true. Shutting the physical location dropped online sales by 11.5%.

• The National Retail Federation forecasts 2024 retail sales to increase between 2.5% and 3.5% to between $5.23 trillion and $5.28 trillion. Bricks-and-mortar locations remain the primary point of purchase for consumers, accounting for approximately 70% of total retail sales.

• Retail construction costs have soared since the pandemic due to surges in inflation, labor costs, and material prices, according to JLL’s United States Retail Market Dynamics for Q3. While 5-year rent spreads are also up by double-digits, in many cities rent spreads still trail construction costs.

• Where are redesigning efforts being focused? According to the Retail TouchPoints 2024 Benchmark Survey “The Future of the Store,” the focus is on: store floor & product displays: 70%; fixtures/merchandising strategy: 62%; front of the store (checkout, etc.) 54%; stock room: 36%; appointment-based retailing areas: 36%; exteriors: 33%; fitting rooms: 18%; and other: 2%.

• Shoppers are using stores as fulfillment centers. BOPIS was used by 57% and 53% went to a store to return a product, according to Salesforce.

Market Data Sources: The Retail TouchPoints Network,  Zebra Technologies, Placer.ai, Chain Store Age, National Retail Federation (NRF), Prosper Insights & Analytics, Shop! Association, Salesforce, Ryder, ICSC, JLL Research. Category: Store fixtures & interiors: display cabinets & cashwraps, POP & full store interiors, kiosks, endcaps, slatwall & systems.

More data on North American woodworking and the specific wood product market segments can be found in the December 2024 FDMC Wood Industry Almanac digital edition or the online almanac articles. Also, find market data year-round at WoodworkingNetwork.com/news/almanac-market-data.