Evolving Shopper Trends
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Consumers still shop — and spend — at stores. Craft experiences to draw them in.
The Experiential Store
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Shoppers crave personalized content, offers and promotions in real-time.
Personal Path to Purchase
Shoppers are still loyal, but they desire more sophisticated offers.
The Changing Face of Loyalty
Local, curated, and smaller experiences appeal to time-pressed shoppers.
Shopping Local, Shopping Small
Shoppers are time-starved… the latest retail tech lets them bypass lines.
Grab-and-Go Convenience
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For the customer price still reigns supreme.
Discount Shopping
Voice and images shape the way consumers discover products online.
Product Search for the Next Generation
Shoppers are spending more on social media and enjoy the interaction.
Social Shopping
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Despite a love of online shopping, consumers are still going to stores. Physical stores account for roughly 90% of all retail sales and five years from now, by most estimates, that number is still likely to be well over 80%. Even more interestingly, just having a physical shop changes how shoppers feel about a retailer. Sixty-one percent of shoppers would rather shop with brands that have a physical location than those that are online only. But retailers need to craft an experience that involves more than just purchasing a product to win the hearts of shoppers. From interactive fitting rooms to ultra-personalization, savvy retailers are doubling down on customer experiences.
Nike’s House of Innovation 000 The footwear and apparel retailer’s NYC flagship houses a full customization wing in The Arena, offering laces, fabrics, decals and more to embellish footwear. Joint collaboration is available in the Nike Expert Studio, a one-on-one service that local Nike Members can book in-store and on the Nike App. NikePlus members can partner with a Nike Expert to find the right item, and then work together to create a personal look at the fully-furnished customization station on the same floor.
Nike’s House of Innovation 000
STORY at Macy’s
STORY at Macy’s STORY brings an editorial experience to retail within Macy’s stores. Themes change every few months in the 1,500-sq-ft store-within-a-store, offering an experience akin to walking through Instagram. “Color,” its inaugural theme, offers a rainbow of curated products, a “Make Your Own” palette station by MAC, and hands-on workshops and classes by Crayola.
Bed, Bath & Beyond, East Hanover, NJ
Bed, Bath & Beyond, East Hanover, NJ The home goods retailer is piloting "The Kitchen," a space where customers can come in for hands-on or demonstrative cooking lessons, try products the retailer sells while cooking and eat what they create at a communal table. The test kitchen offers cooking and baking classes, kid's classes and birthday parties, professional workshops, corporate team building and private parties.
Sephora flagship in Madrid
Sephora flagship in Madrid The beauty retailer widely known for perfecting the “try before you buy” experience has installed an intelligent digital mirror in the Spain flagship. Powered by artificial intelligence, it delivers hyper-personalized experiences and product recommendations to shoppers. The mirror uses a smart engine that accurately blends actionable insights about the person and makes personalized recommendations that take real-time weather and season into account.
Canada Goose
Canada Goose The Canadian brand is experimenting with offering a “cold room” in stores. The refrigerated space offers an immersive experience where customers test parkas and jackets amid a range of different temperatures — including one as low as minus-13 degrees Fahrenheit.
HOME
Old-school personalized service is back. With a modern twist. Thanks to next-gen data collection techniques coupled with analytics, retailers have an unprecedented amount of customer info. This critical data allows retailers to tailor the path to purchase, helping spur the sale and build meaningful engagement. On-trend retailers are investing heavily in their personalization capabilities, with 51% naming it a top strategic priority for 2019. While the ability to glean meaningful insight from shopper data is within reach of most retailers, putting it into action in-store remains elusive. To help leverage deep customer knowledge at the store level retailers are turning to shopper tracking. Thirty-six percent of retailers named in-store shopper tracking as a top 10 technology for 2021. The challenge lies in convincing customers to allow themselves to be identified in-store. Eight percent of shoppers report they will never allow a retailer to identify them, another 19% mark themselves as unlikely. On the flip side, 34% of shoppers said they were extremely or very likely to allow identification.
Would you allow a retailer to digitally identify you inside a retail store so you can receive instant promotions and tailor-made offers?
+ Source: RIS, “Retail 2025 Shopper Study”
Extremely likely Very likely Somewhat likely Unlikely Never
12% 22% 38% 19% 8%
While the ability to glean meaningful insight from shopper data is within reach of most retailers, putting it into action in-store remains elusive. To help leverage deep customer knowledge at the store level retailers are turning to shopper tracking. Thirty-six percent of retailers named in-store shopper tracking as a top 10 technology for 2021. The challenge lies in convincing customers to allow themselves to be identified in-store. Eight percent of shoppers report they will never allow a retailer to identify them, another 19% mark themselves as unlikely. On the flip side, 34% of shoppers said they were extremely or very likely to allow identification.
The sheer volume of retailers in the marketplace makes it difficult to build true shopper loyalty. Difficult, but not impossible. By offering shoppers value-laden programs, innovative retailers can capture their devotion. Fifty-eight percent of consumers say they spend more with a retailer when they are a member of their loyalty program, and are more likely to recommend a retailer (46%) and feel emotionally connected (42%). The retailer benefits of a successful loyalty program are numerous, but for the shopper it really comes down to savings. When asked why they subscribe to loyalty programs, 85% of consumers pointed to discounts and offers. And sixty-five percent of shoppers cited offer and reward reminders as a key reason they opt into location-based programs. Shoppers’ increased reliance on discounts and offers coupled with sophisticated digital consumer touchpoints has brought a new level of loyalty investment. Twenty-nine percent of retailers cited adding or expanding a loyalty program as a topline growth opportunity worthy of investment.
Who Are the 5 Most Loved Retailers?
#1 Amazon changed the way American’s shop and has become a mandatory stop along the path to purchase for many online shoppers.
#2 Whether it is a billion dollar supply chain facelift, in-store wayfinding, or cutting-edge visual search, the retailer continues to develop its technical clout to connect with shoppers.
#3 The shocker on this list earned the enduring loyalty of the American shopping public thanks to its ability to stock its stores with in-demand merchandise while staying true to its $1 price point.
#4 Lowe’s continues to invest in exper-iential technology including augmented reality, customer-service robots, and next-gen e-commerce capabilities to connect with digitally-focused consumers.
#5 Going on a “Target run” has become a cultural phenomenon, a phenomenon the retailer intends to grow and nourish. Target is in the midst of a major 1,000-store remodeling project.
#1
#2
#3
#4
#5
+ Source: Morning Consult, "Most Loved Brands in America 2019"
The retailer benefits of a successful loyalty program are numerous, but for the shopper it really comes down to savings. When asked why they subscribe to loyalty programs, 85% of consumers pointed to discounts and offers. And sixty-five percent of shoppers cited offer and reward reminders as a key reason they opt into location-based programs. Shoppers’ increased reliance on discounts and offers coupled with sophisticated digital consumer touchpoints has brought a new level of loyalty investment. Twenty-nine percent of retailers cited adding or expanding a loyalty program as a topline growth opportunity worthy of investment.
Thirty-one percent of shoppers go to local stores more today than five years ago compared to stores operated by large regional and national chains. Can this trend be reversed? The answer is yes, but retailers can’t rely on traditional retail methods. Retailers are experimenting with rolling out small format stores, typically in urban areas, including those such as Nordstrom Local which carry no inventory. In March, Whole Foods Market opened a 2,500-square-foot store, dubbed Whole Foods Market Daily Shop, putting a focus on local foods, as well as grab-and-go snacks, drinks, soups, salads and sandwiches. Larger retailers are also experimenting with bringing the boutique experience inside. Macy’s launched The Market @ Macy’s, a small open space within 12 stores that rotate a handful of brands on display. The space offers a turnkey “retail as a service” model — brands pay one all-inclusive, up-front fee, then keep 100% of their sales made in-store.
+ Source: RIS, “29th Annual Retail Technology Study, Retail Accelerates”
In what ways have your shopping behaviors changed compared to five years ago?
Local stores versus big chain brands
31%
MORE
14%
LESS
Shoppers were asked...
Grab & Go Convenience
As shoppers clamor for speed and convenience, it’s not surprising cashierless technology has dominated media headlines. Next-gen grab-and-go stores allow shoppers to simply pick an item off the shelf, put it in their bag, and walk out. Using a mix of next-gen technology to track customer movement in the store (thanks to hundreds of strategically-placed cameras) Amazon Go stores can recognize when a product is selected and charge the customer’s account when they exit the store. After launching the pilot in late 2016, Amazon has 10 Go locations open now (and is on record with its plan to open thousands of these stores over the next few years). In another take on cashierless tech, the Dallas located Sam’s Club Now store offers a mobile-first shopping experience powered by the new Sam’s Club Now app. The test lab’s Scan & Go technology lets shoppers just wave their mobile device over an item without having to scan the bar code, saving valuable seconds per item.
of shoppers would like to use grab-and-go stores with self-checkout from their own smartphone...
59%
but just 9% have had the chance.
of retailers have up-to-date grab-and-go technology in place today.
But another 15% are either in the midst of a deployment or will start one in the next 12 months.
7%
+ Source: RIS, “29th Annual Retail Technology Study: Retail Accelerates”
As shoppers clamor for speed and convenience, it’s not surprising cashierless technology has dominated media headlines. Next-gen grab-and-go stores allow shoppers to simply pick an item off the shelf, put it in their bag, and walk out.
Using a mix of next-gen technology to track customer movement in the store (thanks to hundreds of strategically-placed cameras) Amazon Go stores can recognize when a product is selected and charge the customer’s account when they exit the store. After launching the pilot in late 2016, Amazon has 10 Go locations open now (and is on record with its plan to open thousands of these stores over the next few years).
In another take on cashierless tech, the Dallas located Sam’s Club Now store offers a mobile-first shopping experience powered by the new Sam’s Club Now app. The test lab’s Scan & Go technology lets shoppers just wave their mobile device over an item without having to scan the bar code, saving valuable seconds per item.
Experiential stores, intuitive digital offerings, and grab-and-go convenience are helping usher in a new age in retail, but for the customer price still reigns supreme. Ten years ago when the U.S. economy was stuck in the mire of the great recession, money-strapped consumers turned to discount shopping to make ends meet. Whether it was dollar stores, off-brand groceries, extreme couponing, or close-out fashions, Americans were in search of a deal. Thankfully the country’s economic landscape has greatly improved since its generational low-point a decade ago. However, the uncertainty of the time forever altered consumer behavior, giving rise to the discount-focused shopper. Consumers demand value wherever they choose to shop, both at value-based retailers and traditional outlets. Seventy-five percent of consumers report that sales and promotions are very or extremely important. In addition, 40% report that they can’t resist making a purchase when a product they desire is on sale. That fear of missing out on a deal is a powerful urge that savvy and nimble retailers can capitalize on.
43%
of consumers shop a discount grocer weekly.
+ Source: NRF, “Consumer View 2018”
66%
of consumers visit a dollar store at least twice a month.
58%
of consumers shop at an outlet at least once a month.
63%
of consumers buy more items on sale than they did five years ago.
Voice shopping has the opportunity to revolutionize product search, but it’s still in its infancy. Currently, only 23% of shoppers have made a purchase through a voice-shopping platform, which is slightly up from 20% in 2017. The big year-over-year news is the jump made by Amazon Alexa over its rivals Google Home and Apple’s Siri. Shoppers using Amazon Alexa nearly doubled from 6% to 11%, while Google Home and Siri each lost a little ground. In addition to voice, visual search technology (using relevant images to yield better search results than a text search) is beginning to shape online shopping. But today it remains a tiny fraction of total search volume, perhaps topping 1 billion monthly searches, compared with hundreds of billions of text searches. However, at 62%, visual search was the technology U.S. and U.K. millennial Internet users would feel most comfortable incorporating into their digital shopping experience.
Social media is powerful. But how powerful is it exactly? There are currently 2.7 billion social media users worldwide and that number is expected to balloon to 3 billion in two years. And in the U.S. the number of people with a social account is approaching 80%. While those numbers are certainly staggering, it doesn’t speak to the potential for retailers to monetize social. Twenty-six percent of shoppers are spending more on social media than they did five years ago. And the top 500 retailers collected an estimated $6.5 billion from social shopping in 2017, up 24% year-over-year. Retailers such as Nordstrom, Aldo, Sephora and countless others are making money on social by allowing customers to make purchases right from their social feeds. Not only does shoppable social provide another potential sales avenue, it allows customers to interact with the brand and key influencers in a fun, low-pressure environment, helping create long-term affection for the brand.
of shoppers report they shop more on social media today compared to five years ago.
26%
Retailers such as Nordstrom, Aldo, Sephora and countless others are making money on social by allowing customers to make purchases right from their social feeds. Not only does shoppable social provide another potential sales avenue, it allows customers to interact with the brand and key influencers in a fun, low-pressure environment, helping create long-term affection for the brand.