Reinventing Retail: Why Downtown Shops Still Matter in a Digital World
By: Natalie Pineiro
Executive Director, Downtown New Jersey
Walk down any New Jersey Main Street and you’ll see it: a mix of charming storefronts, bustling cafés, and shop windows carefully curated to draw you inside. Yet, for all their charm, brick-and-mortar shops are often cast as underdogs in the age of Amazon and one-click convenience. With e-commerce now accounting for just over 16% of U.S. retail sales, the story is often told as if physical retail is on the brink of extinction. The reality? The opposite. More than four out of every five purchases still happen in stores, and new research suggests people don’t want to give that up.
Instead, today’s shoppers are blending the best of both worlds—using digital tools for convenience while still craving the human touch of shopping in person. A recent Salsify study found that 72% of consumers “webroom” (research online, buy in-store) while 56% “showroom” (try in-store, buy online). In other words, people aren’t choosing between online and offline—they’re using both.
The Experience Economy Takes Center Stage

Revolving Sushi at Kura Sushi Bar (locations in Cherry Hill, Edison, Jersey City, Fort Lee and Paramus)
What drives someone off their couch and into a shop when they could just as easily hit “add to cart”? Increasingly, it’s the experience. Retailers are no longer just selling products; they’re curating moments. Deloitte’s 2025 outlook notes that enhancing the in-store experience is now a top growth priority, and case studies from across the country show why. From interactive tasting counters and maker workshops to live music and pop-up galleries, stores are doubling as community hubs. The Wall Street Journal recently highlighted retailers who are adding cafés and lounges to encourage shoppers to linger —turning what might have been a quick errand into a memorable outing.
In fact, luxury brands have leaned hardest into this trend. Many are opening fewer stores, but those stores are more like destinations: offering exhibitions, private lounges, or in-store events. These spaces blur the line between shopping and entertainment, and downtowns are perfectly positioned to embrace this shift.
Why Shopping Local Still Wins
Of course, experience isn’t just about design—it’s about people. A 2025 peer-reviewed study in Small Business International Review found that personal connection is a major driver of loyalty to small businesses. Shoppers aren’t only buying products; they’re investing in relationships with the owners and staff who know their names, remember their preferences, and provide the kind of service no algorithm can match.
This is especially true on our downtown streets. Whether it’s a bookstore owner recommending a new release, or a boutique manager setting aside a piece “because it looked like you,” small businesses thrive on these human moments. Research in Sustainability (2025) confirms it: empathy and interpersonal connection directly build long-term customer relationships.
And it pays off. Not only are customers willing to spend more to keep local shops alive, but the purchases they make in-store are also smarter. Data from ICSC shows return rates for in-store buys are three times lower than for online purchases —a win for both the customer and the business owner’s bottom line.
The Future Is Balance
The lesson here isn’t that online or in-person “wins.” It’s that downtowns can thrive by embracing both. Stores become showrooms, stages, and service hubs. Online portals become the after-hours storefront. And when the two work in sync, shoppers get the best of all worlds: touch, try, and test in person—then buy when and how it’s most convenient.
For downtown leaders, that means rethinking success. It’s not only about the sale at the register. It’s about how many people walked through the door, how long they stayed, how many came back, and how many ultimately clicked “purchase” later that night on the store’s website.
Because while the future of retail is undeniably digital, its heart is still very much human—and it still beats strongest on Main Street.
ABOUT NATALIE PINEIRO
Natalie Pineiro is the Executive Director of Downtown New Jersey and the Founder of INK Creative Strategies, where she works with communities across the state to strengthen and revitalize their downtowns. In addition to her professional work, she teaches communication courses at Kean University and enjoys mentoring the next generation of changemakers. Natalie is passionate about bringing people together, celebrating local culture, and helping New Jersey’s downtowns thrive.