The Channel Integration and Benchmarks in the Retail Industry report says that commercial and nonprofit marketers spent $173.2 billion on direct marketing in the United States.  Measured against total US sales, these advertising expenditures generated approximately $2.025 trillion in incremental sales.

That's not a typo, Trillion with a T.

Here are some other tidbits from DMA's report  that are worth consideration as you plan future retail expansion and movement into e-retail.

• The absence of a brick-and-mortar store is becoming prevalent among retailers, since 41 percent of survey respondents don't have a physical store.
• The website is the most consistently used direct marketing channel, followed by email and direct mail.
• Mobile is the direct marketing channel retailers are least likely to use.
• Only 33 percent of respondents provide cross-channel order fulfillment.
• Discounts remain the most popular loyalty program, with 80 percent of respondents using them.
• Brick-and-mortar stores (20 percent) and websites (22 percent) produced the highest level of revenue in 2007.

Keeping in mind that DMA is the trade group that advocates for direct marketers, there is some food for thought here. Clearly commodities like office supplies and product parts are easily purchased online. But scrapbook retailers sell more than scrapbooking supplies.....

You sell possibilities.... and possibilities can't be shrinkwrapped and mailed in a standard size box.

This research supports my belief that brick and mortar stores cannot just be places that sell stuff. Stores have to be a haven for their customers, a place to find a sympathetic ear, to learn something interesting.

Brick and mortar stores that stay alive and thrive offer experiences that cannot be replicated in front of a computer screen. Do you need to look at e-retail as a way of expanding sales. Yes, that is where the trend is going.

But remember, selling supplies is not the only revenue stream you can find in your store- clubs, classes, loyalty programs. All those things are not found online.-- Beth

P.S. Tomorrow I am off to the Photo Marketing Show in Las Vegas. Be sure to check back for reports from the show!