Clicks Over Bricks: How E-Commerce Growth Is Redefining Local Retail

Updated: December 29, 2025 04:30

Image Source: Forbes

The rapid rise of e-commerce in 2025 has significantly altered consumer shopping habits, impacting traditional local stores. With mobile-first shopping, instant digital payments, and social commerce driving growth, brick-and-mortar outlets face declining footfall. Retailers are now adopting omnichannel strategies and upgrading logistics to stay relevant in a digitally dominated marketplace.

The global retail landscape is undergoing a dramatic transformation as e-commerce continues to outpace traditional shopping channels. In regions like Southeast Asia and Singapore, nearly 56% of consumers purchased products online in February 2025, with groceries, second-hand items, and digital payment services leading the surge.

This shift is fueled by high smartphone penetration (97% in Singapore), widespread internet access, and innovations such as live-stream shopping, buy-now-pay-later services, and cross-border trade platforms. The convenience of online shopping, coupled with competitive pricing and faster delivery, has made digital platforms the preferred choice for millions of consumers.

For local stores, the impact is profound. Declining foot traffic and rising operational costs are forcing retailers to rethink business models. Many are embracing omnichannel strategies, integrating online and offline experiences, and investing in last-mile delivery logistics to retain customers.

Analysts caution that while e-commerce growth presents opportunities, it also poses challenges such as supply chain pressures, cybersecurity risks, and intense competition. The future of retail will likely hinge on how effectively local businesses adapt to this digital-first environment.

Key Highlights And Major Takeaways

•⁠ ⁠55.8% of consumers shopped online in February 2025; groceries and second-hand items saw strong demand

•⁠ ⁠Singapore boasts 99% internet access and 97% smartphone ownership, enabling rapid e-commerce adoptiongrow.singlife.com

•⁠ ⁠Innovations like live-stream shopping and BNPL services reshape consumer engagement

•⁠ ⁠Local stores face declining footfall and rising costs, prompting omnichannel adoptiongrow.singlife.com+1

•⁠ ⁠Businesses upgrading logistics and digital platforms to compete with online giants

•⁠ ⁠Challenges include supply chain strain, cybersecurity risks, and market saturationMetapack

Conclusion

The shift from bricks to clicks is no longer a trend but a reality shaping the future of retail. Local stores must innovate, integrate digital tools, and enhance customer experiences to survive in a marketplace increasingly dominated by e-commerce.

Sources: Sellercraft

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