E-commerce will grow 56% in 2025, but physical stores will not disappear

In the next four years, e-commerce will represent 33% of the total growth of mass consumption sales in the country, while local ones will represent 67%. The integration of both channels will be key to survival.

The e - commerce advances to step firm in the country . According to a study prepared by the market research firm Euromonitor International , developed for Google , it grew by 39% in Argentina in 2020 and is expected to increase by 56% in 2025.

Its impulse will not mean the disappearance of physical stores, which, in the next four years, will represent 67% of the growth of total sales of the retail sector in Argentina , while e-commerce will involve 33%, according to to the report "The future of retail".

However, the survey emphasizes this last projection, since electronic commerce only represented 7% and 11% of total sales in Argentina in 2019 and 2020 , respectively.

National growth is aligned with the advance of Latin America. In 2020, the industry grew 54% in the region , with peaks of 87% in countries such as Peru and 61% in Brazil. It is estimated that by 2025 it will reach a record 96%.

The omnichannel strategy will be key to the future of the sector. According to the analysts in charge of the investigation, the premises will fulfill new roles as places of experiences, sales and distribution centers, and pick-up points .

"The physical store is redefined and complements electronic commerce. Today, 77% of Argentines enjoy buying both online and in branches, " explains Marcos Aramburu, Google research manager, executive in charge of the study.

However, online stores generate greater brand loyalty than physical ones: during the purchase, 17% change from a face-to-face store to a virtual one when they cannot find their preferred brand. On the other hand, 73% declare that their cell phone is a fundamental part of the process.

The report shows that, at present, consumers use an average of 7.4 channels to investigate and 5.6 to make the purchase. Among the favorites for the first stage are search engines, social networks and online videos . While for the purchase, they prefer physical and digital stores, retailer websites and apps .