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Are Bricks and Mortar Passe?

By PaymentsJournal
May 8, 2019
in Customer Experience, Merchant, Truth In Data
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In-store shopping remains the dominant way consumers make retail purchases, even as e-commerce and digital shopping tools continue to reshape the customer experience. While online shopping offers convenience, factors such as delivery costs, product availability, pricing, and delivery times can still lead consumers to make purchases at physical stores.

The distinction between digital and physical retail is also becoming less clear. Consumers increasingly use digital tools throughout the shopping journey, whether researching products, comparing prices, checking availability, or making purchasing decisions. Understanding these omnichannel shopping trends can help merchants deliver experiences that better reflect how consumers actually shop.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower left corner of your screen to receive notifications as soon as the episode publishes.

  • Contrary to popular belief, consumers still do the majority of their shopping in stores
  • According to the latest U.S. Census statistics, about 10% of all retail volume is via e-commerce
  • When people do not shop online they often report that delivery cost, price, availability and delivery time are the top barriers
  • Regardless of the method of shopping, consumers are using digital tools to enhance the shopping experience

The continued importance of in-store shopping demonstrates that digital commerce has not replaced physical retail. Instead, digital technology is becoming an increasingly important part of the broader shopping experience.

Consumers may ultimately complete most purchases in stores, but online research, mobile devices, and other digital tools can influence where they shop and what they buy. At the same time, barriers such as shipping costs and delivery times can determine whether an online shopper completes a purchase digitally or turns to a physical store instead.

For retailers, these omnichannel shopping trends reinforce the importance of connecting digital and physical experiences rather than treating them as separate channels. Merchants that make it easy for customers to move between online research and in-store purchasing can better serve consumers regardless of where the final transaction occurs.

The data provided for this episode of Truth In Data is a preview of an upcoming report from Mercator Advisory Group.

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Tags: Consumer BehaviorE-commerceMerchant

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