The rapid, pandemic-fuelled growth of online is settling back to pre-Covid levels as in-store shopping continues to rebound.

That’s one of the takeaways in a new forecast from Forrester, which expects that US total retail sales will exceed $5tn. Online retail sales will reach $1.6 trillion.

According to Forrester’s “2022 Online Retail Sales Forecast, US,” online retail sales will grow 10 per cent annually during the next five years to account for 30 per cent of the market by 2027. Offline retail sales will account for 70 per cent of total retail sales by 2027.

The report warns that US retailers will face several challenges in the short term. Among the challenges that Forrester sees affecting US retail in the near term are consumers holding discretionary spending due to inflation and the need to get rid of excess inventory potentially impacting profitability.