Reviving Main Street: Overcoming Brick-and-Mortar Retail Challenges

The world of retail is changing fast, and if you own a brick-and-mortar store, you’ve probably felt it firsthand. While most shopping still happens in physical stores — over 80% of retail sales are still in-person — online shopping keeps growing and changing the game. More and more people love the convenience of buying from their phones or computers, which means traditional stores need to find new ways to keep customers coming through the door.

Shoppers today don’t just want to browse. They expect an experience. Checking out products online before visiting a store is only the first phase of that experience. Your customers also anticipate that shopping in your physical location will be easy, fun and worth their time. The rise in e-commerce has undoubtedly made things tougher for local shops, pushing brick-and-mortar stores to find fresh ways to connect with their communities.

This article dives into the biggest challenges these stores face, plus how they can overcome them to keep thriving.

Major challenges facing brick-and-mortar stores

Let’s talk about one of the biggest headaches for brick-and-mortar store owners: the high cost of simply keeping the doors open. Unlike online businesses, physical stores must juggle a long list of expenses every single month. Rent alone can eat up a huge chunk of your budget, with U.S. shopping centers averaging around $28 per square foot. That’s before you even think about utilities, insurance or permits.

Then there’s the cost of keeping the lights on and the space comfortable for customers. Utilities like electricity, water and heating can add up fast, especially if your store is in a larger building or a busy area. Staffing is another major expense. Between paying your team, covering benefits and handling payroll taxes, the numbers climb quickly. And don’t forget about maintenance, cleaning and security. All those little things that keep your store safe and welcoming also chip away at your bottom line.

With so many fixed and variable costs to manage, it’s no wonder many brick-and-mortar owners feel squeezed. The reality is that running a physical store almost always comes with higher operational costs than selling online, making it even more important to keep a close eye on your expenses and find ways to maximize every dollar.

Other common challenges include:

• Limited market reach. Brick-and-mortar stores rely heavily on local foot traffic. That means your customer base is mostly limited to people who live nearby or happen to be in the area. Unlike online retailers who can reach shoppers across the country — or even the globe — physical stores have a much smaller pool of potential customers. This can make it tough to grow, especially in smaller towns or during off-peak seasons.
• Inventory and space constraints. Physical stores only have so much space to work with. That means you can’t stock everything you might want to sell, and you must be smart about what goes on your shelves. Managing inventory becomes a juggling act, and there’s always the risk of running out of popular items or having too much of something that just won’t sell. Plus, theft and accidental damage can lead to unexpected losses.
• External factors. Sometimes, things happen that are completely out of your control. Bad weather, local construction or big events in town can all affect how many people walk through your doors. Even a road closure or a new competitor nearby might have a big impact on sales. These external factors can make it difficult to predict and plan for busy or slow periods.
• Rising labor and goods costs. Inflation and supply chain issues have pushed up the prices of goods, and it’s getting more expensive to hire and retain good employees. Higher wages and increased costs for supplies mean slimmer profit margins, making it even more important for store owners to keep a close eye on their bottom line.

Why brick-and-mortar stores still matter

In a world where you can buy almost anything online, brick-and-mortar stores offer something you just can’t get from a screen. More than just places to shop, they’re the heart and soul of our communities. Their value goes far beyond what’s on the shelves, making them an essential part of everyday life.

There’s nothing quite like walking into a store, seeing products up close and talking face-to-face with someone who really knows their stuff. Whether you’re flipping through books, trying on clothes or testing out a new gadget, being able to touch, feel and experience things in person makes shopping more enjoyable and meaningful. Plus, helpful staff can answer questions, offer recommendations and create a personal connection that online shopping just can’t match.

Building community connections

Local stores do more than just sell products. They help bring people together. They’re the places where neighbors meet, friendships form and community events happen. From sponsoring Little League baseball and softball teams to hosting art shows or book clubs, brick-and-mortar shops play a huge role in making neighborhoods feel like home. They give us a sense of belonging and help keep our communities vibrant and unique.

Supporting local economies

When you shop at a local store, your money stays close to home. It supports local jobs, helps pay for city services and boosts other small businesses in the area. Studies show that for every dollar spent at a local business, a much larger percentage stays in the community compared to shopping at big-box stores or online giants. In other words, supporting brick-and-mortar shops is an investment in your own neighborhood’s future.

Strategies for overcoming brick-and-mortar retail challenges

Staying competitive as a brick-and-mortar store in 2025 and beyond means being willing to adapt, innovate and connect with customers in new ways. While the challenges are real, there are proven strategies that can help physical retailers not just survive but thrive. Embracing technology, creating memorable in-store experiences, streamlining behind-the-scenes operations and strengthening community ties, are a few of the ways local stores can carve out a unique and lasting place in the retail marketplace.

Embrace technology and omnichannel retailing

The line between online and in-store shopping is blurrier than ever. Successful retailers are integrating technology to make shopping seamless, whether customers are browsing on their phones or walking through the front door. This could mean offering online ordering with in-store pickup, using mobile apps to send personalized promotions or leveraging real-time analytics to understand shopper behavior and adjust displays or promotions on the fly.

Gregory Shein, CEO of NOMADIC SOFT, a company specializing in web and mobile app development and custom software solutions, emphasizes the importance of technology integration in his approach. “To attract and retain foot traffic at my brick-and-mortar store, I have implemented a loyalty program that rewards repeat customers with exclusive discounts and personalized offers,” he said.

Similarly, Deepak Shukla’s Pearl Lemon Café has found success through technology integration. As shared by their PR Specialist Charnell Ward, “In our café, we’ve simplified customer engagement through an app that rewards loyalty while also gathering insights into customer preferences, allowing us to offer promotions that resonate with them.”

Connecting digital and physical experiences helps stores meet customers wherever they are and offers the convenience today’s shoppers expect. This blending of physical and digital strategies is called “phygital.” It may include using mobile apps to locate products in-store, offering augmented reality fitting rooms or enabling in-store pickup of online orders. The possibilities are endless. When used well, it allows customers to enjoy the best of both worlds, making shopping more interactive, convenient, and personal.

Enhance the in-store experience

Shopping in person should feel special – something customers can’t get online. That’s why many stores are focusing on experiential retail, offering things like pop-up events, interactive displays or workshops that make a visit memorable.

Moattar Ali shared a compelling success story from his consulting work. “I counseled a struggling neighborhood bookstore that was losing customers to Amazon,” he said. “Rather than trying to match prices or convenience, we made their store a community center. They began hosting author readings, book clubs and writing workshops, and even partnered with local coffee roasters to establish a cafe culture.”

The results speak for themselves. “Foot traffic increased by 280% in six months, and most importantly, average transaction value doubled as customers spent longer hours and found other products,” he said. “The events created loyal customers who considered the store a part of their social life, not a destination to purchase books.”

As Ali noted, “Successful physical stores today don’t sell merchandise – they sell experiences that become part of the fabric of their customers’ lives.”

Streamline operations and inventory management

Behind the scenes, technology is also making it easier to run a store efficiently. Tools like smart shelves, RFID tags and automated inventory systems help track stock in real-time, reduce losses and make sure popular items are always available. Streamlining operations – whether it’s simplifying checkout with mobile payments or using analytics to optimize staffing – means you can spend more time focusing on your customers and less on paperwork.

Focus on personalization and community engagement

Pearl Lemon Café demonstrates how personalization and community focus can drive success. According to Ward, “We focus significantly on two factors, which are experience and personalization. At Pearl Lemon Café, we have adopted local community engagement through events and offering unique experiences that address the tastes of the community. Whether through having special deals or through workshops, we ensure our customers feel valued and connected. This makes customers want to come back.”

Community engagement is often understated in importance. “We consistently engage with our community through social media and in-store events, creating a welcoming environment that encourages both new and returning customers to visit regularly,” said Shein.

Use social media to showcase experiences

Modern marketing for brick-and-mortar stores goes beyond traditional advertising. In his consulting, Ali recommends using social media to showcase the in-store experience, not just products. “Behind-the-scenes images and videos of author events, event customer feedback and new arrival teasers generated FOMO (fear of missing out) that pushed people to the store,” he said.

This approach creates anticipation and demonstrates the unique value that can only be experienced in person.

Build strong relationships with the local community

Local stores are the heartbeat of their neighborhoods. Building strong community ties by supporting local causes, collaborating with nearby businesses or simply getting to know your regulars creates a sense of loyalty that online giants can’t match.

Many successful retailers partner with local artists, host charity drives or sponsor community events to stay top-of-mind and show they’re invested in the area’s success. These relationships help turn shoppers into advocates who support your store and spread the word.

“Success in retail today is not obtained by being convenient to buy but by being indispensable in your community,” said Ali.

Keeping brick-and-mortar retail alive

At Mystery on Main Street, we know how tough it can be for local retailers to keep up. That’s why we’re committed to supporting brick-and-mortar stores with a clear mission to bring business back to the locals. Our goal is to help local shops gain more exposure and drive more business, with less work for owners. We make it fun and rewarding for people to discover and support main street businesses.

Through our unique, interactive app and creative marketing tools, we connect shoppers directly with local stores, encourage foot traffic and help merchants stand out in their communities. We look forward to empowering your business and strengthening your neighborhood.