Inpatient trade should better use your own strengths

Inpatient trade should better use your own strengths

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Stationary trade should make better use of its own strengths

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08/30/2021 - What consumers like most about the booming online trade is the convenience and the large selection. But they also appreciate the strengths of brick-and-mortar retail, which, in cooperation with the cities, should further improve the local shopping experience.

by Frauke Schobelt

Since the beginning of the pandemic, more than half of Germans have shopped more online than ever before, according to an e-commerce study commissioned by Mastercard.

Online trade is clearly outperforming stationary trade (n=949 participants). Graphic: HDE Handelsverband Deutschland, Stadtmonitor 2021

A study by the German Retail Association (HDE) on the subject of e-commerce sales also illustrates the rapid increase in online trade compared to stationary trade. According to this, in 2020 alone, online trade grew three times as fast as stationary. What this means for the future of city centers and brick-and-mortar retail has been examined in a Germany-wide representative study by the performance agency Peak Ace on behalf of the fashion and lifestyle magazine Lifestyleslab. For this purpose, 949 participants from all over Germany were asked about their shopping behavior and their shopping needs with a special focus on stationary trade. 21 percent of those surveyed value the convenience of online shopping, 17 percent the round-the-clock shopping, 16 percent the time 14 percent the larger selection, 12 percent the price comparison and 9 percent the evaluation of other customers. Although online shopping has become increasingly popular in recent years, many people cannot imagine life without a lively city centre. Almost half (45 percent) of those surveyed say they enjoy shopping in stationary retail, 24 percent of whom were aged 18 to 24. Many are currently even worried about the retailers in their region and are consciously shopping at stores in their vicinity. Only 17 percent of those surveyed avoid stationary shops.

Reasons for shopping in stationary retail

Personal advice: Many consumers value the interpersonal component when shopping in a store. It is a more familiar and transparent feeling to be advised personally and on site by salespeople than to exchange information over the Internet with a chat or by e-mail. 13 percent of those surveyed named this as an indicator of a positive shopping experience. 15 percent would prefer stationary retail to online shopping for personal advice.

The stationary trade can score with good service, personal advice, large selection and atmosphere (n=949 participants). . Graphics: Lifestyleslab

Products you can touch: Although product descriptions and reviews can be used when shopping online, there is still a certain degree of uncertainty on the part of consumers. On site, customers can try on the products and purchases directly and check the quality themselves. For 27 percent of those surveyed, this is the main reason for visiting stationary retail.

Shopping atmosphere: The Mood Media study from 2019 states that for the majority of shoppers, a pleasant atmosphere is a decisive factor in the decision to shop in brick-and-mortar stores and against online shopping. 16 percent name a positive and pleasant atmosphere as the reason for a good shopping experience.

Less electronic monitoring: When shopping online, data is pulled and stored directly from browser cookies or user accounts. As a result, personalized (and thus sometimes highly manipulative) advertising is displayed or unsolicited newsletters appear in the mailbox. When shopping offline, there is less risk of becoming a transparent customer.

Immediate availability: When shopping in brick-and-mortar stores, you don't have to wait for the delivery times before you can try on the desired products. In addition, clothing for special occasions or last-minute gifts, for example, can be bought without having to wait long.

Personal customization: Many stores offer in-house tailoring services including professional measurements. The effort involved in changing clothes is therefore much less than with products that are ordered online.

Physical Retailers Deliver Faster: Many physical stores have multiple locations spread across a wide geographic area. As a result, they're often well-positioned to deliver popular items almost anywhere within hours.

No shipping costs: Many online shops have shipping costs. This discourages many shoppers from ordering online, preferring to shop offline instead.

Accommodating return policies: Younger consumers between the ages of 16 and 34 expect accommodating return policies, a home delivery service and "Click & Collect".

Good service and trying out a product are therefore important factors for shopping in a local store, as is the quality of products and size selection.

Online shoppers appreciate the convenience, offline shoppers appreciate the on-site service. Graphics: Lifestyleslab

How inner cities have to change

The cities still attract visitors of all ages. The largest group of visitors are people between the ages of 25 and 44, one in three belongs to them. However, the separation of online shopping and on-site shopping is felt to be increasingly outdated across all groups of buyers - inner-city retailers have to adapt to this. Cities should combine shopping and social issues more strongly. "The heart of the city must pulsate. There must be a lively mix of tourism, restaurants and cafés, living, working and culture, but also shops, so that city centers can flourish again. City centers are currently too dependent on retail," was one conclusion the study authors.

Trying out products is a strong argument for walking around town (n=949 participants). Graphics: Lifestyleslab

Her advice: With the support of the cities, retailers should push digitization forward in order to improve shopping convenience and thus the shopping experience. The integration of smartphones should be given even greater consideration in the concepts. Cities also need to refine new mobility solutions to make inner-city trade more accessible. Public and private spaces should also be visually connected and thus upgraded. Intuitive traffic and routing, green, consumption-free rest and relaxation zones, a spatial concentration of the retail offer and uniform shop opening times also contribute to a revitalization of the inner cities.

More on the topic:

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In its report 'The New Face of Local', the local marketing provider Uberall examined how the local customer journey has changed in the wake of the pandemic.

Two out of three Germans would not want to do without local trade

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08/30/2021

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