The retail market will recalibrate next year. In 2020, most retail spending has shifted online, but a new report from Colliers International predicts that online retail sales will decrease 8.5% in 2021, while in-store retail sales will increase 5.9%.

This year, online retail sales jumped more than 36% due to the pandemic, and in-store retail sales declined 3.2%. While Colliers' predictions for 2021 won't offset the massive online shopping growth this year, it is also clear that in-store shopping is not dead. Last year, online shopping accounted for 13.8% of total retail sales. This year, the online portion of the retail market jumped to 18.4%. Colliers forecasts the number will fall to 16.3% in 2021 and steadily increase, hitting 18.3% again in 2023 and 19.9% by 2025.

This year, in-store retail sales actually held up better than expected, growing 2.2% overall. Colliers data forecasts retail sales to grow again next year by 3.2%. Grocery sales led the gains, growing 12.5% this year, followed by the home, electronics and beauty retail segments, which were up 9%, 2.9% and 2.4% respectively. Apparel led in retail losses, down 25.7% for the year. This is likely because consumers bought fewer items for work and social occasions, according to the report.