In just five years, the shopper landscape has dramatically shifted. For example, shoppers are using online (73%) and smartphones (61%) more while visiting stores (31%) and malls (54%) less.
Good citizenship, beyond simple good business operations, continues to rise in importance. Top influences on purchasing behaviors today include honesty and integrity (55%), environmental concerns (42%) and improving local communities (37%).
Technology can augment high-value services that shoppers are looking for today such as product customization (34%) and interactive digital touchpoints (26%), which shoppers want to see more of. However, in some areas technology is a cause of concern, such as in shopper tracking without permission (58%), facial recognition (56%) and artificial intelligence (AI) taking over the shopping experience (55%).
Evolving Consumers
Amazon
Walmart
Target
Google
eBay
Shopping Mall
Primary Places to Search for Products
66%
58%
32%
26%
14%
14%
Consumers Shop LESS
In Malls
In Stores
Online
On Smartphones
Local
54%
31%
Consumers Shop MORE
73%
61%
32%
Retailer Traits That Strongly Influence Purchases
Walmart
Amazon
Target
For Good Value, Products and Convenience
63%
59%
45%
16%
15%
8%
Walmart
Amazon
Target
For a Fun Experience
WHAT DO CUSTOMERS WANT TO SEE?
34%
Product Customization
31%
Sales of Previously
Owned Products
30%
Special Events In-Store
M
O
R
E
L
E
S
S
58%
Shopper Tracking Without Permission
56%
Facial Recognition
55%
AI Taking Over the Shopping Experience
How DO Customers Make Purchases?
97%
Stores
Computer
or Laptop
87%
Mobile Phone Apps
78%
Over the Phone
40%
The Amazon Juggernaut
Today vs. 5 Years Ago
Two big areas where Amazon dominates the retail marketplace is in Prime membership and product search. In each area Amazon captures about two thirds of U.S. consumers, which is a massive shopper base. More than a third of this huge number of shoppers (34%) makes purchases from Amazon at least once a week and a fifth (21%) two or more times per week.
Three areas where Amazon has not shown any growth from results shown in last year’s study are Prime membership penetration, search dominance, and shopper market basket size year over year. This lack of growth is probably the result of competitors catching up to the early leader, shoring up weaknesses, and maximizing their own strengths.
Costco, Sam’s Club and Target now engage 30% to 40% of shoppers with their membership progams, which is a big leap up from findings in the study from previous years. And Walmart, although still refusing to offer a membership program, jumped up to 58% in the minds of shoppers who want to search for products before they make a purchase. This number is up from 41% last year and positions Walmart surprisingly close to Amazon’s industry leading 66%.
There are signs Amazon’s head start has peaked, which indicates several retailers are showing real signs of catching up.
of shoppers, a big majority, have access to an Amazon Prime membership through an individual, student or family account.
How often do Prime members make purchases from Amazon?
Tipping Point Technology
21%
13%
40%
26%
2 or More
Times/Week
1 Time/
Week
2-3 Times/
Month
1 Time/
Month
62%
53%
of shoppers go to Amazon to search for products they want to buy, which is the same figure as last year’s study, however Walmart makes a big leap to 58% from 41% last year.
of Prime members make purchases on Amazon.com of $50 or more per month.
66%
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Retailers are typically reluctant to implement unproven, emerging technologies. However, this reluctance often puts tentative retailers behind the curve when technology-driven breakthroughs hit tipping points with shoppers.
For example, big majorities of shoppers say they are willing to use three tech-driven options that few retailers have in place today – order-only stores where products are shipped to homes (73%), grab-and-go stores that use self-checkout on the shopper’s own phone (69%), and interactive shoppable screens (58%).
However, not all emerging, highly touted technology is ready for prime time, according to shoppers. One of these is voice-assisted shopping, where 51% of shoppers say they are not likely to use it and only 21% say they are.
Trust in voice-activated technologies used in homes is a major drawback for 49% of shoppers. Today, only 13% have trust in these devices. Until the big three (Amazon Alexa, Apple Siri and Google Home) solve the trust issue, penetration among shoppers will remain stagnant, as it has for the past two years, according to study data.
63%
59%
45%
Walmart
Amazon
Target
For Good Value, Products and Convenience
1. Order-only stores (products shipped to homes)
2. Grab-and-go stores (self-checkout from own phone)
3. Interactive shoppable screens
4. Digital order buttons for specific products
5. Virtual try-on for glasses, clothing, etc.
73%
69%
58%
49%
47%
Top 5 Tech-Driven Retail Experiences Shoppers Want
1. Curbside pickup
2. Pickup lockers or kiosks
3. Subscription orders regularly delivered
Top 3 Tech-Driven Retail Services Shoppers Want
69%
55%
53%
Are shoppers ready to use voice assistants for shopping?
51%
Unlikely
21%
Likely
Yes, for tech-savvy early adopters
No, for most shoppers
Have used voice assistants to make a purchase
11%
9%
Apple Siri
Amazon Alexa
7%
Google Home
49%
High Concern
13%
High Trust
One big problem for voice shopping is high concern about listening in the home and lack of trust.
51%
Unlikely
21%
Yes, for tech-savvy early adopters
No, for most shoppers
Likely
Are shoppers ready to use voice assistants for shopping?
OmniShopping
While there is a great deal of information available to retailers about store, online and mobile shoppers, one area where it lags is combining the three into a holistic omni-shopper picture.
The omni-shopper purchases more online (73%) and on smartphones (61%) than five years ago and she also bridges the gaps between channels. For example, while in a store, 70% of omni-shoppers use the retailer’s mobile app to check prices, product descriptions, and in-stock availability. Importantly, 71% of these shoppers will allow location-based alerts while they are in stores.
Click-and-collect bridges the gap between digital and in-store shopping, an important omni-commerce characteristic that retailers have not yet fully maximized. One in five shoppers (21%) make a purchase online and pick it up in a store at least twice each month. However, 56% say they have encountered major problems in stores when picking up their online purchases.
This is not just a problem for shoppers. It is a problem for retailers, too, because 90% of shoppers buy more items when they visit stores for pickup. This is a huge opportunity that is lost if stores deliver poor service at this critical point-of-decision.
Omni-shopper behaviors and preferences are still evolving, but one thing is certain – the only way retailers will be able to maximize the opportunity to serve them is to gather omni-shopper data and use it to close gaps in efficient service between the store, online and mobile channels.
of shoppers purchase a product online and pick it up in a store at least twice each month.
of shoppers who do click-and-collect make an additional purchase when they pickup in a store.
21%
90%
of shoppers report major problems in stores when picking up click-and-collect purchases.
56%
THE OMNISHOPPER
73% shop
more online than
5 years ago
71% will allow location-based alerts while in stores
70% use a retailer’s mobile app while in their stores
67% do
click-and-collect
61% shop more on smartphones than 5 years ago
Evolving Stores
The physical store is undergoing a big-bang moment. Savvy retailers are infusing their physical locations with a host of technology innovations designed to merge digital and physical retailing and create a streamlined retail experience.
While building an experiential environment is vital in today’s hyper-competitive market, retailers should not neglect their core capabilities even as they embark on next-gen enhancements, according to findings in the study. Core capabilities that most highly impact decisions on where to shop are safe and secure payment (55%), hassle-free checkout (40%), helpful employees (33%) and ease of navigation (33%).
Retailers should also take note that shoppers are increasingly relying on mobile apps and mobile websites. Seventy percent of shoppers report they use a retailer’s app or website on their phones at least sometimes while shopping in a store. A sizable 17% report using them either most of the time or every time.
Shoppers use apps and websites in-stores for a wide variety of functions, but the most popular are related to price such as checking for sales and promotions (41%), searching for coupons (39%) and comparing prices (38%).
55%
40%
33%
33%
Safe and Secure Payment
Hassle-Free Checkout
Helpful Employees
Ease of Navigation
High Shopper Impact
FACTORS THAT IMPACT
WHERE TO SHOP
48%
38%
12%
8%
7%
6%
6%
Will Use a Retailer’s App or Mobile Website While Shopping in a Store
Walmart
Target
Kohl's
Kroger
Amazon
Best Buy
Home Depot
Top Retailers Where Shoppers Use Their Apps & Mobile Websites While in a Store
41%
39%
38%
36%
34%
Check Sales & Promotions
Check for Coupons
Compare Prices
Inventory Lookup
Scan a Barcode
How Shoppers Use Retailer Apps in Stores
The most popular retailer apps and mobile websites shoppers use in stores are those from Walmart (48%), Target (38%) and Kohl’s (12%).
Sometimes
Never
Most of
the Time
Every Time
52%
30%
14%
3%
Top 10 Stores
for a Fun Experience
Walmart
Target
Amazon
Costco
Kohl's
Best Buy
Macy's
Sam's Club
Dollar Tree
Ikea
Shoppers Want to See More in Stores
Product Customization
Previously Owned Products
In-Store Events
Pop-Up Shops
Digital Touchpoints
34%
31%
30%
29%
26%
Make It Personal
Digital retailing has conditioned consumers to expect a personalized experience. Whether it is tailored recommendations, loyalty program messaging or targeted promotions, shoppers have embraced personalized online shopping.
But in a store it is a different story. While consumers still desire one-to-one services they are hesitant to grant retailers access to the information they need to make in-store personalization possible. Nearly half (45%) of American consumers report they are not willing to allow digital identification in stores, and only 18% say they are extremely or very likely to allow themselves to be identified.
In order to effectively personalize the in-store experience, retailers need as much information about their shoppers as possible. Obtaining that information can be tricky but not impossible, especially if retailers are willing to give as good as they get.
Consumers report they are willing to provide their birthday (39%), favorite drinks (35%) and preferred entertainment (31%) if the offer made by retailers for the information is appealing. However, it is worth noting that some information remains off limits for most shoppers. These include providing household income (35%), contact information (29%) and social media contact information (27%) regardless of the offer.
39%
38%
35%
31%
Birthday
Favorite Social Media
Favorite Drinks
Favorite Entertainment
Willing
to provide
Personal Information
35%
29%
27%
24%
Income
Contact Info
Favorite Social Media
Household Composition
NOT Willing
to provide
Extremely
Likely
Never
Not At All Likely
Somewhat Likely
12%
21%
24%
38%
Will Allow Digital Identification in Stores
Very Likely
6%
Retailers that have the best grasp on fast-moving customer expectations and are rising to serve them are Walmart (63%), Amazon (59%) and Target (45%), who were named favorites for providing value, products and convenience. Yes, Walmart has made an impressive turnaround and beats Amazon for delivering a great retail experience.
The same three mega-retailers show up in response to a question about “fun factor” in retailing – Walmart (16%), Target (15%) and Amazon (8%) – but the numbers tell a different story. Both Walmart and Target beat Amazon, which clearly highlights a potential weakness in the cool and efficient Amazon business model.
Favorite Retailers
Top 5 Store-Based Membership Programs
Costco Sam’s Club Target Kohl’s Macy’s
1
2
3
4
5
Location-Based Services
Customers Will Allow
Reminders to Redeem an Offer or Reward
Alerts/Offers While in a Store
Send a Request for Help Message in a Store
48%
41%
22%
Personal
Information
Recommendations
The omni-commerce shopper has evolved in the 10 years since "omnichannel" emerged as the dominant approach to achieving success in retail. Today, this evolution is occurring at a speed retailers struggle to match. The recommendations provided here are based on behaviors and preferences from 3,000 shoppers and should be viewed as a way to focus tech investments and strategies.
Pivot to the ‘new’ omni-shopper who goes online more today than five years ago (73%), allows location-based alerts while in stores (71%), uses mobile apps while in stores (67%), and utilizes click-and-collect (67%).
1.
Don’t give up the fight against Amazon. Three areas where Amazon growth has stagnated compared to last year’s study are Prime membership penetration, search dominance, and shopper market basket size.
3.
Give shoppers what they want to see more of such as: product customization (34%), sales of previously owned products (31%), and special events in stores (30%).
2.
Give shoppers tech-driven experiences, such as order-only stores (73%), grab-and-go stores (69%), interactive shoppable screens (58%), digital order buttons for specific products (49%), and virtual try-on (48%).
4.
Give shoppers new and convenient services, such as curbside pickup (69%), pickup lockers or kiosks (55%), and subscription orders regularly delivered (53%), all of which are driven by technology for maximum efficiency.
5.
Explore digital identification of shoppers in stores. They (56%) want reminders to redeem offers or rewards (48%), alerts for offers available in stores (41%), and ability to send a request for help (22%).
7.
Stand for what you believe in. Top issues or concerns that influence sales are: honesty and integrity (55%), environmental concerns (42%), improving local communities (37%), and responsible sourcing (37%).
8.
Pivot to expanding store options to include product customization (34%), previously owned products (31%), in-store events (30%), pop-up shops (29%), and implementing more digital touchpoints (26%).
6.
Pivot to the ‘new’ omni-shopper who goes online more today than five years ago (73%), allows location-based alerts while in stores (71%), uses mobile apps while in stores (69%), and utilizes click-and-collect (67%).
1.
Don’t give up the fight against Amazon. Three areas where Amazon growth has stagnated compared to last year’s study are Prime membership penetration, search dominance, and shopper market basket size.
3.
Give shoppers tech-driven experiences, such as order-only stores (73%), grab-and-go stores (69%), interactive shoppable screens (58%), digital order buttons for specific products (49%), and virtual try-on (48%).
4.
Give shoppers what they want to see more of such as: product customization (34%), sales of previously owned products (31%), and special events in stores (30%).
2.
Give shoppers new and convenient services, such as curbside pickup (69%), pickup lockers or kiosks (55%), and subscription orders regularly delivered (53%), all of which are driven by technology for maximum efficiency.
5.
Explore digital identification of shoppers in stores. They (56%) want reminders to redeem offers or rewards (48%), alerts for offers available in stores (41%), and ability to send a request for help (22%).
7.
Stand for what you believe in. Top issues or concerns that influence sales are: honesty and integrity (55%), environmental concerns (42%), improving local communities (37%), and responsible sourcing (37%).
8.
Revitalize mobile apps for the 69% of shoppers who use them while they are in stores. Walmart and Target have already done so and have emerged as industry leaders in mobile.
6.
Knowing what shoppers want is the most important metric in retail and giving it to them is the surest road to success.
Study Methodology
For RIS’ 10th annual shopper study, we polled 3,000 U.S. consumers in the month of June to find out about their behaviors and preferences. The survey sample was designed to mirror the composition of the U.S. shopping public in terms of household income, age, gender, and geographic population distribution.
Overarching findings indicate that consumers are ready to embrace innovative technologies during their shopping journey if it makes the experience quicker, easier and more convenient. However, traditional retail approaches such as well-run stores and outstanding service remain essential to attracting and maintaining customer loyalty.
4%
14%
19%
19%
18%
17%
10%
15 - 17
18 - 24
25 - 34
35 - 44
45 - 54
55 - 64
65 - 74
age
45% 55%
Male Female
GENDER
17%
29%
25%
16%
5%
4%
2%
1%
1%
Under $25,000
$25,000 - $49,999
$50,000 - $74,999 $75,000 - $99,999
$100,000 - $124,999
$125,000 - $149,999
$150,000 - $174,999
$175,000 - $199,999 $200,000+
household income
38%
21%
21%
19%
South
West
Midwest
Northeast
GEOGRAPHIC LOCATION
80%
77%
53%
53%
44%
29%
25%
24%
23%
Mass Merchandiser
Grocery
Dollar/Discount
Pharmacy
Convenience
Warehouse Club
Specialty
Department Store
Apparel/Footwear/Accessories
types of stores frequented
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PRESENTED BY
Costco Sam’s Club Target Kohl’s Macy’s