Discover how Gen Z is driving the revival of in-store shopping. Retail Radar 2025 reveals key insights from 440 million transactions—showing physical retail outpacing e-commerce and reshaping the future of retail.
While many believed the pandemic had forever tipped the scales in favor of online shopping, 2024 told a different story. According to the Retail Radar 2025 report—based on a massive dataset of 440 million transactions across Sweden, Norway, and Denmark—in-store shopping is not just back, it’s thriving.
Retail revenue across all channels grew by 7.4% in 2024. But it wasn’t driven by online sales. In fact, e-commerce declined by 3.7% compared to 2023. Instead, the growth came from physical retail—and the generation leading the charge? Gen Z.
In 2024, online retail sales declined by 3.7%, despite an increase in overall consumer spending. While e-commerce had already seen signs of slowing growth post-pandemic, this data indicates that the market stagnated and contracted compared to the previous year.
One key factor was the underperformance of online sales during Black Week, which fell short of 2023 levels. Since Black Week traditionally contributes significantly to annual online revenue, this shortfall dragged down total e-commerce spending for the year.
In-store sales experienced a steady increase since the pandemic, and grew by almost 12% in 2024. When compared to online sales, it is clear that in-store shopping is becoming increasingly significant during sales periods, with peaks observed in May, November, and just before Christmas.
Among all verticals, premium fashion brands led the way with a 29.6% revenue boost, followed by pharma & health at 28.5%, and fashion resellers at 20.4%. These numbers suggest that consumers are investing more in self-expression, wellness, and quality over quantity.
Revenue growth per industry in 2024
Despite being digital natives, Gen Z (ages 18–28) is showing a powerful shift in behavior. Their in-store spending increased by an impressive 27%, faster than any other generation.
They may be known for their love of tech, but Gen Z is actively seeking out brands that deliver high-quality, personalized, and immersive retail experiences. They’re also incredibly discerning, returning products 44.8% more often than the average shopper, highlighting the importance of getting every customer interaction right.
E-commerce isn’t disappearing, but physical retail is regaining ground fast. Gen Z wants more than convenience. They crave quality, connection, and experience. Physical stores remain vital in driving engagement, especially around peak seasons.
Download the report and get access to all insights based on 440 million transactions across Sweden, Norway, and Denmark.
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