MADISON, N.J. — Although the retail landscape has faced disruption in recent years, nearly half of U.S. adults prefer to make purchases in-store rather than online, according to a new survey conducted by Madison-based Coldwell Banker Commercial Affiliates.
“Despite doomsday headlines about the retail industry and how e-commerce has taken over, our survey has found that Americans still enjoy and remain loyal to in-store shopping, regardless of the retail climate,” says Fred Schmidt, president and COO of Coldwell Banker Commercial Affiliates.
Working on behalf of Coldwell Banker, Harris Poll surveyed 2,001 adults from Aug. 15-17 as part of an online study. The participating cohorts included 194 younger Millennials (age 18-29), 160 older Millennials (age 30-34), 479 Gen Xers (age 35-49) and 884 Baby Boomers (age 50-69), to reveal Americans’ shopping preferences and determine the steps retailers can take to remain relevant in today’s competitive retail industry.
Overall, the survey found that 47 percent of U.S. adults prefer to shop in-store rather than online. More than half of Baby Boomers (51 percent) prefer the in-store experience, followed by younger Millennials (50 percent), Gen Xers (42 percent) and older Millennials (27 percent).
When asked a similar question in 2016, 43 percent of U.S. adults preferred shopping in-store over online, according to Schmidt, showing a 4 percentage point increase year over year. “All-in-all, this shows that brick-and-mortar retail remains steady, but there is work to be done to keep the industry relevant.”
Integrating technology into the retail sphere is one way retailers can achieve this.
According to the survey results, over one-third (35 percent) of U.S. adults say that in-store technology like self-serve kiosks and checkouts improves their shopping experience. Younger Millennials prove that they are digital natives, with 41 percent showing interest in in-store tracking and mobile notifications.
Although a relatively new concept in the world of retail, American consumers are becoming more comfortable with the idea of virtual reality. In 2016, 10 percent of Americans said they were open to using augmented or virtual reality while shopping in store. This year, 17 percent were open to the idea, with older Millennials showing the most interest at 28 percent.
“Increasingly, American households are introducing more and more technology into their day-to-day routines, and it’s only natural for them to expect more from their retailers,” says Schmidt. As Americans become more exposed to technology — and as Gen Z acquires more purchasing power as they grow older — Schmidt says these numbers will continue to grow.
In addition to technology, the survey revealed that even among a younger crowd, Americans value small, local businesses and often prefer to shop at boutique stores. According to the survey results, 40 percent of U.S. adults say supporting local small businesses is important to them as they make decisions about where to shop.
“Naturally one might ask, ‘what does this mean for large big-box stores?’, and the answer is that they too will have to adapt,” says Schmidt. “In order to remain relevant, big-box and department stores will need to look at their large stores and consult with their brokers about reconfiguring space to create a more appealing, boutique look to encourage more foot traffic.”
To view the full survey, click here.
— Camren Skelton