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Despite online shift accelerated by pandemic, consumers still value the ‘touch and feel’ of physical retail

Full report: The Retail Experience Economy 2.0

Despite online shift accelerated by pandemic, consumers still value the ‘touch and feel’ of physical retail

This article is part of a four part mini-series, taken from our report "The Retail Experience Economy 2.0", which focuses on how the Retail Experience Economy will need to adapt after Covid-19. Find the other three parts at the bottom of this page

 

5 minute read

As we emerge from the pandemic, there are a number of aspects of our lives as consumers that have changed irreversibly, others that have stayed the same, and others still that have either intensified or diminished in and value.

Retail Economics maintains a key interest in the Experience Economy, having looked closely at the four realms of experience in collaboration with Squire Patton Boggs in 2019. Our most recent report on the matter, “The Retail Experience Economy 2.0: Adapting to a New Landscape”, looks at how each of the four realms of the consumer experience previously identified (Environment, Entertainment, Escapism and Education) have been impacted by a year and a half of Covid restrictions.

The closure of non-essential retail during periods of lockdown necessitated the shift to online. Consumers were faced with new digital-first customer journeys, having to overcome barriers of trust and the initial friction of setting up online accounts. Retail Economics research found that almost half (45%) of shoppers have bought goods online during the pandemic that they previously only ever purchased in-store.

However, this doesn’t mean that the focus has swung irreversibly towards e-commerce – far from it. Our research shows that 61% of consumers that shop online miss the ability to touch, feel and try on products, while over a quarter (26%) miss the overall experience of physical shopping.

This suggests that for many consumers, online shopping is more a functional and convenience-led activity, and not necessarily an enjoyable experience. For more emotive purchases where shoppers want to get hands-on with products before they buy, the in-store experience is essential.

 

Fig 1: 61% of consumers miss touch and feel the most compared to online

Chart RE what was missed most

Source - Retail Economics

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This work forms part of a wider piece of research and is a downloadable in pdf format

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However, there are still some nerves among shoppers. As the economy reopens, retailers need to provide an in-store experience that intelligently balances safety with the aspects of physical shopping that consumers have missed the most. Indeed, our research has found that 57% of consumers felt “comfortable” shopping in non-food physical outlets within the first month of reopening.

That over 40% do not feel comfortable clearly reflects ongoing virus-related concerns. Pent-up consumer demand is evident, but lingering health and safety concerns continue to hold back shoppers from returning to stores at scale. The vaccine rollout and reopening of retail and leisure venues is aiding a recovery in footfall, but it remains below pre-crisis levels.

How, then, can retailers effectively ‘lure’ Covid-conscious consumers back into non-food retail outlets, as well as continuing to cater to an increasingly mixed bag on in-store, online and click-and-collect transactions? They must engineer tech-driven, omnichannel environments where customers feel safe, relaxed and encouraged to spend time browsing and discovering new products.

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Found this short article interesting?

This article is the first in a four part mini-series from our report “The Retail Experience Economy 2.0”. 

  • Part two can be found here
  • Part three can be found here
  • Part four can be found here 

The insight in this report is critical for industry professionals operating in the retail and related industries for improving strategic planning, forecasts and to navigate the ongoing disruption and wider structural changes with the retail sector.

View Full Report Here

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