New Research Shows Brick and Mortar Retail is Here to Stay, But Needs a Digital Update

adyen retail report

San Francisco—May 3, 2017—Adyen, the technology company reinventing payments for the global economy, today released new research highlighting consumer preferences around in-store shopping. The study was conducted by Morar Consulting, surveying 2,000 people ages 18-55, and found that even with the growth of e-commerce, consumers still actively enjoy shopping in brick and mortar locations. When a preferred shopping experience is implemented, whether that is changing how someone checks out or how they interact with sales associates, 63 percent of people claim they will shop more overall, in store and online.

Key findings from the report include:

  • There are clear benefits to shopping in stores
  • ○ 86 percent of people want to go to a store to manage exchanges or returns of items purchased digitally
  • ○ 60 percent of people rank being able to see, touch, sample and try on items as the top reasons to shop in a store
  • ○ 33 percent of people say that they enjoy shopping as a social activity and that is one of the top reasons they shop in a store
  • Retailers need to deliver unified commerce experiences that blend elements from in-store and online
  • ○ 78 percent of people want to buy or reserve before going into the store
  • ○ 69 percent do not use a sales associate for assistance, and prefer to browse themselves
  • ○ 54 percent want loyalty program information automatically tied to their credit card, even when shopping in-store
  • The actual shopping experience has a huge impact on the bottom line
  • ○ 79 percent of shoppers have left a store due to long lines
  • ○ 73 percent of sales are lost when a line is abandoned
  • ○ 10 minutes is the average threshold for waiting in line
  • Consumers are ready for future shopping experiences
  • ○ 59 percent of people expect mobile payments to be ubiquitous in two years
  • ○ 53 percent of shoppers see AR/VR showrooming as a norm by five years
  • ○ 34 percent of shoppers want within the next 12 months, the ability to “just walk out” with an item, where they will be automatically charged and can skip the checkout line altogether

“There are things that people enjoy about shopping in stores, and brick and mortar retail isn’t going anywhere,” said Roelant Prins, chief commercial officer at Adyen. “There are also things that people enjoy about shopping online though, and it’s not as simple as just taking what works online and applying it to the physical world. It’s about creating a unified experience, where the best parts of online are merged with the best parts of in-store to gives shoppers exactly what they’re looking for. We’ve seen first hand that retailers are rolling out these solutions, and our goal at Adyen is to help these retailers deliver on the promise of Unified Commerce and set an example about what it will take to succeed going forward.”

The survey also examined a new type of shopper, dubbed Tastemakers, who are driving forward future shopping experiences in retail. Tastemakers are two times more likely on average to regularly use digital services like Uber, Airbnb and Spotify, they are nearly two times more likely to incorporate social media as part of their shopping, and they are three times as likely to be a go-to source for tech advice.

When examining shopping preferences, the study found that Tastemakers are more likely to enjoy in-store shopping as an activity than the average person, and they are also more likely to have experienced new ways to pay for their favorite items, such as using a mobile wallet, or interacting with a “floating” sales associate, who accepts payments on the spot, as opposed to a traditional checkout line.

“There is a group of consumers that have shown they regularly make the right bets on technology, and regardless of their age, generation, gender or any other standard demographic info, these are people that understand that technology can improve their lives,” said Prins. “The good news for retailers is that these people actually like to shop more than most. If they can figure out how to best serve the Tastemakers, they can build a blueprint for how to evolve their business for the next generation of shoppers at large.”

 

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