Evolution of the In-Store Shopping Experience

As we close in on the 2024 presidential election, differing viewpoints continue to surface on social, political and economic issues. This division of opinion is equally evident in consumers’ perspectives of the shopping experience. While some shoppers say they feel crippled by inflation, are limiting spending and don’t see economic relief coming soon, others maintain a positive financial outlook and report their habits haven’t changed. Despite their polarized comments, the 1,000 shoppers surveyed by the Path to Purchase Institute in January/February 2024 reflect similar habits and perspectives to 2023. It’s the fourth straight year P2PI has partnered with Great Northern Instore for this survey examining the in-store shopping experience.Respondents’ budgets and attitudes vary, but the results clearly show they continue to regularly shop. And across shopping categories, they continue to head in-store. The consistency in their habits and the factors that impact their satisfaction with the in-store experience reinforce areas of opportunity for brands and retailers — areas to both leverage and improve upon.Shopping Behaviors & Habit Changes When it comes to frequency, grocery shopping continues to top the list with 95% of consumers typically purchasing groceries once a month or more. Pet care, non-food household essentials, personal care items, cannabis, alcoholic beverages and medications also represent greater shopping frequency. Meanwhile, consumers are typically shopping less than once a month for apparel, sporting goods, office supplies, home improvement, home decor and electronics.As brands and retailers evaluate the shopping experience, it is important to note that in-store shopping accounts for at least 7-in-10 shopping trips across categories with alcoholic beverages, medications, home decor, home improvement and groceries topping the list. Based on respondents’ comments, inflation impacts their shopping mindset, and this is reinforced by shopping habit responses across store types. Compared to a year ago, shoppers say they are going to dollar stores, supercenters and convenience stores more often. Younger shoppers, men and those with household incomes of $100,000-plus also demonstrate a habit shift since 2023. These groups indicate shopping in physical stores more often now compared to a year ago across most categories.In-Store Shopping ExperienceConsistent consumer behavior provides brands and retailers with opportunities for continued investment, growth and improvement. For the third year, the survey shows consistency with the primary reasons respondents prefer in-store shopping. This information reinforces important aspects of the in-store shopping experience, leading with the ability to see and interact with products (61%). Looking for in-store sales and promotions (45%), avoiding shipping charges (44%) and the immediacy and instant gratification of a purchase (41%) also top the list of reasons why consumers prefer shopping at physical retail.When looking to cater to a specific audience, it is interesting to note that younger shoppers, men and those with higher household incomes are more likely to say they prefer in-store shopping to sample products, for the ability to identify eco-friendly products more easily and for the experiential offerings/interactivity in the store. Different shopping categories also elicit different responses. For example, while seeing products in person is particularly important for apparel, sporting goods shoppers prioritize the enjoyment of the treasure hunt experience, expertise from store associates, and experiential offerings.As brands and retailers evaluate areas for improvement, it is important to consider the factors influencing shopper satisfaction with the in-store experience. Operational elements, such as a consistent stock of items (71%), ease of checkout (66%) and store cleanliness (64%) are top of mind. This is closely followed by clear and visible signage, the assortment of products available, an easy-to-navigate store layout and customer service. While eye-catching visuals and displays and experiential offerings are identified as the least significant, these areas increased slightly in importance from last year. These factors along with overall store ambiance are more likely to be prioritized by Millennials and shoppers with higher household incomes. The interest in in-store technologies falls below 40% across varying options with tap-to-pay (38%) capabilities and mobile app solutions (30%) having the highest appeal for in-store shoppers. Younger respondents continue to show more interest in technology options compared to their older counterparts.In-store pain points present another area of consistency among consumers. Similar to the 2023 survey, out-of-stock items cause the greatest in-store shopping frustration. Likewise, around one-third of shoppers also reference crowded stores as an area of dissatisfaction.Impulse PurchasesWith consumers’ shopping mindset focused on their needs over wants and stretching their budgets, it makes sense that product sales and special offers are currently driving impulse purchases (50% of respondents). Beyond promotional pricing, one in three shoppers admit to spontaneous purchases in the checkout area when an item catches their eye. For around half of the respondents, this impulse purchase activity takes place more often in-store at dollar stores, grocery stores and supercenters. When it comes to electronics and home improvement stores, it drops to about one-quarter of shoppers. Brands and retailers still have an opportunity to draw attention via a variety of in-store displays. Endcaps top the list as attention grabbers at 42% followed by large displays at the front of the store (41%), temporary or seasonal displays (37%) and product displays in the walkways of larger areas (35%).As brands and retailers contemplate display design, understanding the target audience for the products may help guide decision-making. Younger Gen Z and Millennial shoppers as well as those with household incomes over $100,000 are more likely to make spontaneous purchases. Displays near checkout, content on TV screens, in-store audio and brand video ads on TV screens most appeal to this group. Meanwhile, endcaps and temporary displays prove to be more effective with older shoppers. Private-Label Products As consumers contemplate private-label purchases, inflation and household budgets influence decision-making. Overall, nearly 1-in-3 shoppers say they are purchasing private-label items more often now compared to a year ago from grocery stores and mass merchants. However, approximately 1-in-5 say they are purchasing private-label products less often from clothing, drug, home improvement, office supply, electronics, sporting goods/outdoor activity and craft stores. Those making private-label purchases less often cite higher prices and cutting back on shopping due to the economy as the main influencers.When looking closer at these purchase habits in supercenters and grocery stores, consumers most often make decisions based on price and value. Similarly, price and value are the top-ranked drivers across all categories. The perception of value on private-label grocery and wholesale club items, however, seems to have declined from last year. On the other hand, the sense of value has increased for private-label options at dollar stores.In-Store vs. Online ShoppingConsumers continue to demonstrate consistency in their in-store versus online shopping habits. Since 2022, the surveyed shoppers say two-thirds of their shopping is done in-store. When looking at responses from a generational perspective, younger shoppers report shopping online more often than their older counterparts. How shoppers receive their online orders offers an interesting glimpse into the shopping journey. Consumers select delivery most often for online orders with clothing retailers, grocery stores, wholesale clubs, electronics stores, and supercenters, while in-store pickup is used frequently at craft, dollar, drug and home improvement stores. Response comparisons between 2023 and 2024 illustrate some shifts in delivery versus in-store pickup with the grocery, wholesale club, convenience store and dollar store showing increases in the delivery option. Respondents note using curbside pickup the least, less than 25% across categories.For brands and retailers looking to leverage sales opportunities, more than half of shoppers say they frequently purchase additional items when picking up online orders in-store. These purchase habits are more frequent when shopping at dollar stores, supercenters, convenience stores, wholesale clubs, grocery, office supply and sporting goods/outdoor activities stores.In terms of online strategies and sales conversions, it is important to note that more than three-quarters of shoppers have shopped directly through a retailer or brand’s website/app in the last three months. More importantly, less than half have shopped online through social media, an ad on a website or blog, within a video game or streaming platform, in a livestream shopping event, using a voice assistant, through Smart TV ads or the metaverse. Gen Z and Millennial shoppers are more likely to say they have used one of these means for online shopping. Likewise, these younger shoppers, along with those with a household income over $100,000, are more likely to seek out brands or products in-store that they have come across online. Across all respondents, YouTube (47%) and Facebook (47%) serve as the most influential sources of shopping inspiration followed by Instagram (35%) and TikTok (34%).Future Outlook As survey participants anticipated shopping habits in the next six months, 1-in-3 shoppers believe they will spend more often on groceries and cannabis while approximately one-third predict spending less often on sporting goods, home improvement, electronics, home decor and office supplies. Reflections on anticipated discretionary spending provide brands and retailers insights into the consumer mindset as the election approaches. Less than one-fifth of shoppers anticipate spending more with respondents predicting they will most likely spend less on eating at restaurants, going to local attractions or going to coffee shops.When it comes to how they will shop across digital channels, consumers lean toward retailer or brand websites and apps with more than half saying they are unlikely to shop across other digital channels in the next six months. This data provides an important note to brands and retailers looking to capture consumer attention and convert sales. Furthermore, brands and retailers need to combat consumer attitudes with less than one-quarter optimistic about macroeconomic factors. More than half of the respondents predict gas prices (53%) inflation (52%) and global conflicts (58%) will get worse over the next six months and just 41% of shoppers feel optimistic about the U.S. economy.