Core Insights - FTI Consulting projects U.S. e-commerce sales to reach $1.27 trillion in 2025, marking an 8.5% increase from the previous year [1] - The online retail market share is expected to rise to 23.5% in 2025, up from 22.7% in 2024 and 21.6% in 2023, but growth is anticipated to decelerate and plateau near 30% by 2030 [2] Retail Sales Analysis - Total retail sales from 2020 to 2024 increased by $2.4 trillion above pre-COVID expectations, with 40% of this growth attributed to inflation [3] - Online retail sales during the same period were $932 billion above pre-COVID expectations, influenced by altered shopping patterns due to the COVID-19 pandemic [3] Consumer Spending Trends - Inflation-adjusted sales growth has been marginal or negative since 2023, with consumers facing challenges such as tariff concerns, a cautious job market, and geopolitical uncertainty [4] - The report indicates that consumer spending appetite is subdued for the second half of the year, despite ongoing spending increases [4] Evolution of Retail Strategies - Brands are adapting by embracing retail partnerships, moving away from solely direct-to-consumer models, as evidenced by consumer excitement around events like Amazon's Prime Day [4] - The next wave of successful retailers will be those who invest wisely and build capabilities that connect various consumer touchpoints [5]