As more consumers embrace multichannel shopping, retailers are diversifying their investments online and offline to meet customers’ needs, according to the annual State of Retailing Online study released by the National Retail Federation and Forrester.

“Retailers are evolving with customers’ shopping behaviors by creating a seamless shopping experience online and in store,” NRF Vice President of Research Development and Industry Analysis Mark Mathews said. “From pop-up stores to social marketing, retailers are finding innovative ways to engage and acquire new customers.”

Retailers clearly see the value of physical stores, particularly as ecommerce costs are increasing. More than half of surveyed retailers confirm they will open stores in 2019, and 36% will have a higher store count than in 2018. Only 7% said their net store count would decrease.

To bolster their customers’ store and digital experiences, customer-centric retailers are investing more in omnichannel fulfillment services, personalization tactics and mobile marketing. They are also making strides in better measurement and refined omnichannel programs.

The digital marketing landscape also is shifting. To reach their customers more effectively, retailers are prioritizing their spending on social marketing and engaging with consumers on mobile devices.

For the first time this year, social surpassed search marketing in terms of where retailers are increasing their marketing investments: 55% of surveyed retailers are planning to increase spending on social marketing compared with 51% on paid search.

“The marketing mix is palpably changing,” Sucharita Kodali, vice president and principal analyst at Forrester, said. “Not only has social knocked search marketing from its spot as the top-growing digital marketing tactic, but retailers are also tapping into video marketing and online marketplaces as increasingly important tools for product discovery and research.”