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

As digitally native direct-to-consumer (DTC) brands eye growth in 2025, the question of opening physical stores is critical—and nuanced. Does going into retail cannibalize a DTC’s core online sales, or does it unlock synergistic growth? The answer, according to industry analysts, recent studies, and leading brands, is that physical retail can be both a risk and a major opportunity.

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 However, current data and expert commentary show that this view is outdated.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…