Why In-Store Shopping Prevails: Trends Transforming Retail
European retail is undergoing a transformative shift, fueled by evolving consumer behaviors and the dynamic interplay between e-commerce and brick-and-mortar stores. Retailers now face the dual challenge of catering to digital-savvy shoppers while maintaining a compelling in-store experience that lures customers through the doors. Insights from the State of Shopping 2024 report, developed by ShopFully in collaboration with Offerista Group, provide a glimpse into this complex terrain, based on a survey of 11,000 European consumers. Let’s delve into these emerging trends and discover how brands can adapt to stay ahead in the race.
1. The Best of Both Worlds: Seamless Omnichannel Shopping
A striking takeaway from the survey is that a staggering 92% of European shoppers still cherish the tangible experience of shopping in physical stores. The thrill of seeing, touching, and trying on products before committing to a purchase remains a powerful draw for consumers. However, the digital realm is far from obsolete; 78% of shoppers engage in online research before making in-store purchases, illustrating how the two experiences are intertwined.
To thrive, brands must embrace omnichannel strategies that harness the strengths of both digital and physical shopping. This could mean integrating innovative digital tools into stores, such as virtual fitting rooms or QR codes for instant product information. By blending convenience with the in-store experience, retailers can meet the cravings of today’s consumers and stand out in a competitive marketplace.
2. Quality and Price Come First
Another compelling trend is the noticeable decline in brand loyalty. The survey reveals that only 16% of shoppers remain steadfast to a specific brand, with most prioritizing quality and price. A remarkable two-thirds of respondents cite quality as their foremost consideration when making purchases, while 59% regard price as a critical factor. Today’s shoppers are discerning, willing to switch brands if they find better value or quality elsewhere.
Promotions and discounts also wield significant influence over buying behavior. About 60% of European shoppers actively seek out deals, making promotions an essential component of their shopping strategies. The days when consumers would wait for seasonal sales are declining, as nearly two-thirds seek bargains throughout the year.
Moreover, sustainability is becoming a significant consideration. Even at higher price points, 42% of European shoppers remain conscious of the environmental impact of their purchases, with more than half willing to pay more for greener products. Retailers and brands that offer eco-friendly options and highlight their sustainability efforts will find themselves well-positioned to attract this conscientious market segment.
3. Every Touchpoint Matters: Building a Strong Customer Journey
In the face of rising inflation, with 58% of consumers feeling uncertain about their purchasing power, it’s crucial for retailers to make every interaction count. From the moment a shopper browses online to the final in-store purchase, each touchpoint presents an opportunity to build trust and drive sales.
Digital catalogs are on the rise, with 56% of respondents using them to research products before heading to the store. While brand websites and mobile apps remain vital, shoppers increasingly prefer platforms that aggregate multiple catalogs for easy comparison. Retailers must enhance their digital presence, ensuring they provide comprehensive, user-friendly platforms with detailed product information, customer reviews, and personalized recommendations.
In-store experiences must also be seamless. The survey indicates that 67% of consumers visit stores primarily to engage physically with products, but strategic promotions, offers, and loyalty programmes can significantly sway their purchasing decisions.
4. Click and Collect: Driving Additional Sales
The rise of Click-and-collect services across Europe illustrates a growing trend in consumer convenience, often leading to additional in-store purchases. The survey reveals that an impressive 85% of consumers who use Click-and-collect end up buying more in-store. This is particularly evident in France, where half of shoppers who use the service regularly make additional purchases when they pick up an item.
Retailers can capitalize on this behavior by designing targeted in-store offers for Click-and-collect customers or positioning complementary products near pickup points. However, regions like Germany exhibit slower adoption rates, with only 1 in 10 consumers making extra purchases through this service.
5. Regional and Personalization Nuances Matter
Consumer behavior across Europe is anything but uniform, with preferences varying significantly from one country to another. In Italy, for instance, 65% of shoppers prefer physical stores exclusively, while Germany stands out as the most omnichannel market, where consumers comfortably transition between online and offline shopping. France, meanwhile, boasts the highest brand loyalty, with 24% of consumers sticking to their favourites compared to just 13% in Italy, Germany, Spain, and Romania.
Understanding these regional nuances is vital for crafting tailored strategies that resonate with shoppers. Personalization is also becoming paramount. European consumers expect tailored content based on their preferences and location. Retailers should leverage data analytics to deliver relevant product suggestions, personalized promotions, and location-specific marketing campaigns that address each customer’s unique needs.
An Auspicious Outlook for the European Outlet Market
The European retail scene is transforming at lightning speed, powered by consumers who crave the ease of online shopping but still cherish the magic of in-store experiences, all while demanding quality products at competitive prices. The brands that will rise to the top are those that master the art of omnichannel strategies, put consumer preferences at the forefront, and leverage regional insights to make every shopping experience feel personal. As the market evolves, the retailers that meet their customers where they are—both online and offline—will define the future of retail.
In this dynamic landscape, the outlet market holds a distinct advantage. With its distinct value proposition, this segment is exceptionally well-prepared to meet the shifting demands of today’s savvy consumers. Outlets have long been synonymous with delivering the best value for money, offering high-end brands at competitive prices, which resonates strongly with shoppers seeking quality without compromising their budgets.
But today’s Designer Outlets go beyond mere shopping—they’re crafting destinations where retail, dining, leisure, and entertainment collide. It’s not just about finding a great deal; it’s about enjoying a complete experience. Whether it's relaxing at a stylish café, catching a live event, or exploring seasonal pop-ups, the new generation of Designer Outlets are now social meeting points where every visit is a journey filled with discovery and delight. This seamless blend of retail and recreation is exactly what today’s consumers are looking for—value that’s measured in moments as much as in money.
ROS Retail Outlet Shopping is leading the charge with its omnichannel strategy, turning digital browsers into loyal shoppers. Leveraging tools like Content Marketing, SEO/SEM, Mobile Marketing, Native Ads, Loyalty programs, Big Data, and Social Media engagement, ROS transforms online interest into foot traffic, creating a cohesive shopping experience that bridges the gap between the virtual and the physical.
Guided by its ‘Think Global, Act Local’ strategy, ROS aims to tap the full potential of each location by tailoring its approach to the specific needs and preferences of the local community. From partnering with local agencies to crafting bespoke marketing plans, ROS’s approach ensures that each outlet becomes not just a shopping destination but a place that reflects the cultural and regional nuances of its surroundings. This localized approach drives increased traffic, enhances brand and location awareness, and strengthens customer loyalty.
The European outlet market is not just keeping pace with change; it’s leading the way. By staying true to its core principles and embracing the latest retail trends, this segment is poised to remain the go-to choice for consumers seeking value, quality, and a truly immersive shopping experience.