Brick-and-Mortar Store Sales Collapse and Foot Traffic Decline

Definition

Physical retail office supply stores experienced a 6% sales decline in 2024 alone, while e-commerce grew to capture 24% of total market revenue. Small independent store operators face accelerating foot traffic decline as consumers shift purchasing to Amazon, Staples.com, and other online channels. This is particularly acute for small retailers who lack the brand recognition and delivery infrastructure of large competitors. Remote and hybrid work workers no longer pass through office supply stores on the way to work. Customers avoid physical retail for convenience and price comparison. Fixed costs (rent, utilities, staff) remain high while traffic volume declines, creating unprofitable unit economics. Many small store locations have already become uneconomical, and the trend is accelerating.

Why This Matters

Experiential retail redesign, specialized services (printing, custom orders, shipping), community event programming, omnichannel inventory visibility, click-and-collect fulfillment from stores, local delivery services, B2B corporate account programs

Affected Stakeholders

Owner/Operator

Related Business Risks