Commentary
Report: Physical Retail Stages A Comeback As Online Shopping Declines Globally
- by Richard Whitman , Columnist, September 19, 2024
A new report from VML exploring the modern shopper finds that online spending globally saw a 5% decline in 2023.
According to the report that decline suggests shifts towards more balanced shopper activity across online and offline environments and a growing demand for in-person shopper experiences.
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While online shopping remains quite strong, physical retail is experiencing a sharp resurgence among global consumers — more than half of whom prefer brands with both physical and online stores.
The report surveyed 31,500 consumers across 20 countries and found strong demand for personalized, immersive and omnichannel retail experiences.
Specific findings include:
61% of global shoppers want seamless communication across sales channels, with their journey and data following them
Friction remains in mobile online experiences with 40% of global consumers finding shopping on mobile phones “difficult,” and 66% believing brands and retailers should work harder at making their mobile experiences better.
Consumers believe that brands and retailers are falling short of delivering true omnichannel, with just over half (51%) claiming they don’t think that brands and retailers understand all the steps they take to purchase a product. That’s up a bit from a year ago when 49% expressed that view.
And this dissatisfaction will result in lost sales, as 56% of global consumers say that, in future, they will not shop with retailers, brands or marketplaces that do not match their expectations of online shopping.
Shoppers are demanding “to be at the center of their own immersive omnichannel universe,” said Beth Ann Kaminkow, Global Chief Commerce Officer, VML said: “Brands and retailers are still playing catch-up on the new rules of commerce.”
Neil Dawson, Global Chief Strategy Officer, VML added, “Shopping today is multi-faceted, multi-platform and more integrated than ever before. Matched to savvy consumers, the need for advanced and connected customer journeys is critical to success. Brands must understand and adapt to evolving shopper habits.”
See the full report here.
