Magazine: The State of Retail 2015 Report (Part 1)

Shopper engagement specialist TimeTrade (USA) published its 35-page State of Retail 2015 Report in June. The survey was conducted with 1,029 participants who answered questions about their retail expectations and consumption habits, with the focus being on the relevance of physical stores from a customer perspective. There is a lot at stake, as according to forecasts by 2020 sales of physical stores will grow to USD 5 trillion in the USA. Where shoppers will spend this sum is greatly influenced by their in-store experiences. These days the majority of shoppers are always online, so they want high-level services instantly. However, they still need some kind of physical contact with products to make the final buying decision. 84 percent of respondents said they plan to buy at least as many times on physical stores as in 2014. 85 percent stated that they like to visit brick and mortar shops because they can ‘touch and feel’ the products before making a purchase. What is more, 82 percent of them spend more than planned in these shops. Many retailers complain that consumers are now first searching for products online. Well, they should see this as a great opportunity to engage them in the long run and make them loyal to a store. 70 percent of the survey’s participants said they would prefer buying in a real-life Amazon store to buying from Amazon.com. 65 percent goes to the nearby shop if the same product can be bought there as online. Only 13 percent use their smartphones for shopping purposes regularly and 42 percent never purchased goods this way. With the development of technology retailers have more and more tools for analysing the shopper experience. Young consumers can be a goldmine for retailers: those born between 1980 and 2000 will make up for one third of the US population in 2020. At the moment they are responsible for USD 1,000 billion of retail spending. Those in the 18-34 age group plan to buy in physical stores as many times this year as last year. 92 percent of them enter the shop knowing precisely what they want to take home or with a mental list narrowed down to 2-3 items, still 87 percent of them buy more than originally planned. They want brands to be present on Facebook, Twitter and Instagram. In the USA it is still the 50-70 age group that owns 70 percent of the money to be spent in retail. 31 percent of them use the internet regularly and make most of their purchases in brick and mortar stores. They value relevant offers – ‘smart recommendations’ – 10 percent more than fast service. Although they are rather well-off, they like to economise and expect retailers to be familiar with their special needs and preferences. The so-called Generation X – those born between 1965 and 1979 – represents 18 percent of the USA’s purchasing power. This group of consumers is the most complex and the most difficult to understand: the group is diverse and it is very difficult to identify specific types in it. 29 percent have degrees and they gather lots of information before buying. At the same time they are difficult to convince – they don’t even trust shop assistants, 92 percent of them want to make sure themselves that a product is of good quality. n(To be continued)