For Every $100 Spent In-Store Customers Spend Another $160 Online, Says Report

The Cannibalization Myth: What Actually Happens? For years, DTC leaders worried that opening a brick-and-mortar location would simply steal purchases from their online store, not add new revenue. However, current data and expert commentary show that this view is outdated.

In reality, physical stores can expand the brand’s pie—creating a halo effect that benefits both online and offline revenue. A 2025 study by the International Council of Shopping Centers (ICSC) found that: For every $100 spent at a physical store, the same customer would spend an additional $160 online.

Conversely, customers who shopped online with a DTC would spend an average of $231 in-store. In a previous 2023 study, ICSC’s “Halo Effect III” study, emerging DTC brands experience an average 13.9% increase in online sales following the opening of a new physical store.

The research analyzed data from 69 retailers and 2,103 stores, finding consistent uplifts across nearly all categories. How Physical Retail Boosts Digital Sales-“The Halo Effect” This halo effect plays out in several distinct ways…