The rise of e-commerce and the convergence of online and offline shopping has shaped the way consumers shop.
However, despite the shift to online sales, consumers still prefer to make certain purchases in-store, PYMNTS Intelligence found. These include items such as apparel, furniture, and electronics.
“Tracking the digital payments takeover: Catch the coming e-commerce wave,“PYMNT and Amazon Web Services The joint research will explore how consumers expect their use of digital shopping to increase in the future. According to this study, U.S. consumers are far more likely to purchase retail products in-store than online, with 75% of consumers shopping for and paying for retail products in a physical store.
Consumers are most likely to purchase home appliances in-store, as opposed to products in other categories. 54% of respondents prefer to purchase these products directly. This is closely followed by home furnishings and apparel and clothing, both of which are preferred by 53%.
Concerns about shipping fees, delivery delays, and increased expenses are the top reasons consumers cite for not purchasing these products online. These concerns are especially prevalent among Generation X, baby boomers, and older adults.
Source: PYMNTS Tracking the Digital Payments Takeover: Catching the Coming eCommerce Wave, May 2023 N = 1,649: Respondents who purchased a non-grocery retail item in the past 30 days, April 12, 2023 to April 2023 Survey by 16th
As the holiday season approaches, retailers are gearing up for a competitive sales period, facing challenges such as reduced purchasing power and intense promotional activity. One notable trend this holiday shopping season is the role of younger consumers in driving sales growth.consulting company BCG Gen Z and Millennials who have experienced higher wage increases expect they are more likely to do so. To spend more on holiday shopping. Despite broader financial sentiment pointing toward restraint in spending, BCG suggested that younger consumers see holiday spending as an outlet for financial worries.
Overall, consumers are expected to spend more this year on Toys, electronics and winter essentials, according to Shopify. However, spending plans vary by generation. Gen Z and Millennial consumers plan to increase spending on apparel, pets, beauty, underwear, and home goods, while Gen X and Baby Boomers expect to reduce spending across many discretionary categories . According to BCG.
Brick-and-mortar stores currently play an important role for certain retail categories, but that status quo could soon be threatened. The study found that the proportion of retail spending that occurs in-store is likely to decline significantly next year, as nearly a third of consumers expect to shop more on digital channels. .
In addition to click-and-collect services and integrating loyalty programs across channels, retailers can explore new ways to enhance their customers’ omnichannel experience and increase engagement. For example, augmented reality technology can be brought into brick-and-mortar stores to allow customers to virtually try on clothes or visualize furniture in their home before making a purchase. By leveraging this technology, merchants can offer consumers the best of both worlds.
