Why Experiential Retail? Here are the numbers
October 14, 2019
Experiential retail is celebrated as the key to keeping brick-and-mortar relevant in a post-tech retail landscape. With the ultra-convenient mega-mall that is online shopping, physical retail has had to reinvent itself in order to remain competitive. But with all the talk of pop-up shops, virtual reality chambers, and store-wide renovation, you have to wonder if there will be returns on your investment. Well, recent studies show that a stellar brick-and-mortar retail experience is essential to a successful business strategy. And here are the numbers to prove it:
Brick-and-mortar retail is still alive and well. While interest in online shopping has increased, the majority of shoppers still look to physical retail when making purchases--and prefer an exciting and streamlined in-store experience while doing so.
- 91% of consumers report purchasing at physical retail stores in 2019 as often or even more frequently than they did in years prior, with 28% of consumers saying they purchased from brick-and-mortar retailers more often than they have in the past (Blackhawk Network, “The State of Retail: Trends in Consumer, Retail, and Payment Preferences,” 2019).
- 92% of shoppers report being satisfied with the in-store shopping experience, the highest rate of satisfaction among other purchasing options including online retail (Blackhawk Network, “The State of Retail: Trends in Consumer, Retail, and Payment Preferences,” 2019).
- The majority of consumers shop in-store more often than online, though it varies by age. 82% of baby boomers report shopping in-store at least monthly (Blackhawk Network, “The State of Retail: Trends in Consumer, Retail, and Payment Preferences,” 2019). Meanwhile, 67% of Gen Zers shop primarily in-store, three times as many compared to those that shop primarily online (NRF, “What do Gen Z shoppers really want?,” 2018).
- In-store retail technology matters, with 66% of consumers agreeing that shopping technologies improved their in-store shopping experience, and more than 80% of consumers who have tried Virtual Reality shopping, in-app store navigation, and smart dressing rooms interested in using them again (NRF, “Consumer View Summer 2019”).
- Gen Z values a good experience when it comes to retail, with 81% of Gen Zers reporting that they like to purchase in-store. 86% of Gen Z respondents like in-store shopping for the opportunity to get “exclusives and promotions including free samples, giveaways, and contests,” and 74% agreed that a “well-curated store experience” was important to them (AT Kearney, “Future Consumer Report,” 2019)
- The “Human Factor” plays a major role in sales, as 90% of consumers say they are more likely to buy when helped by a knowledgeable sales associate (Timetrade, “Study: 85% of Consumers Prefer to Shop at Physical Stores vs. Online).
- Consumers are more likely to spend in-store. 71% of respondents say they’re likely to spend $50 or more during an in-store shopping experience, while only 54% say the same of online shopping. Meanwhile, 83% of shoppers say they make impulse purchases in-store (First Insight, “The State of Consumer Spending: In-Store Impulse Shopping Stands the Test of Time,” 2019).
Brick-and-mortar retail is still alive and well. While interest in online shopping has increased, the majority of shoppers still look to physical retail when making purchases--and prefer an exciting and streamlined in-store experience while doing so.
