Examining the In-Store Shopping Experience

Whether expected or unexpected, change is inevitable. In recent years, the highs and lows of global changes have taken consumers, brands and retailers on a roller coaster ride. From the upending experience of the COVID-19 pandemic to the pain points of inflation and the uncertain economic predictions ahead, news of consistency can provide a little comfort and relief. When it comes to the evolution of the in-store shopping experience, consistency is exactly what our latest survey has revealed. The over 1,000 respondents from the Path to Purchase Institute’s January 2023 consumer survey are reporting similar behaviors and frustrations compared to 2022. This data reiterates important areas for brands and retailers to focus on and again shows opportunities to garner shopper attention, gain customer loyalty and elevate the in-store experience. The 2023 report offers insights into consistent shopping patterns, new areas of opportunity, and the trends and topics on consumers’ minds that could influence future behaviors. Shopping Behaviors Consumer habits continue to be affected by global issues. COVID-19 and other health factors, inflation and economic struggles, war and political upheavals, supply chain struggles and worker shortages impact shoppers in different ways. In the survey, respondents referenced inflation and shopping on fixed incomes and within tight budgets, but their responses demonstrate some consistencies in their overall shopping behaviors. Similar to last year’s report, over half of the respondents continue to shop at least once a month in the categories of grocery, pet care, non-food household essentials, personal care items, cannabis, alcoholic beverage and medication. While 97% shop for groceries once a month or more, respondents noted shopping less than once a month for electronics, office supplies, home décor, home improvement, sporting goods and apparel. For those who shop at least once a month per category, grocery, cannabis, sporting goods and electronics top the list for shopping frequency. The grocery and pet care categories continue to rank highest among consumers who shop less often than once a month. No matter the frequency, in-store trips account for at least two-thirds of shopping across categories. Cannabis, alcoholic beverages, personal care items, pet care and non-food household essentials are the overall categories most likely to be shopped for in-store. This reinforces that brands and retailers continue to have opportunities to connect with consumers and build loyalty in-store. Changes in Shopping Habits As society has recalibrated into a post-pandemic normal, in-store shopping has been more than an opportunity to get out of the house. Not only are shoppers still heading to physical retail, but they are also shopping in-store more often. Compared to a year ago, shoppers frequenting grocery stores increased 22%, while those visiting mass retailers rose 14%. While fewer in-store trips are noted for office supplies, sporting goods/outdoor activities, electronics and home improvement, the data across the majority of categories demonstrates a frequency increase from 2022. When it comes to the duration of stock-up shopping trips, 50% of respondents said they are spending a similar amount of time in the store. However, one in five shoppers noted spending more time in-store. This is a 6-point increase compared to last year’s study. Of particular interest are the changes in shopping habits reflected in responses from younger, Gen Z and Millennial shoppers. They indicated shopping in physical stores more often compared to a year ago, and spending more time while they are there. In terms of the number of items purchased in a given shopping trip, again approximately 50% of those surveyed said they are purchasing the same amount, while one-third reported purchasing more items during a single stock-up trip. This percentage reflects a 12-point drop from last year. In correlation with the increase in in-store shopping trip frequency, this suggests consumers may be regaining a sense of comfort in physical retail post-pandemic. In-Store Shopping While digital content consumption and daily screen time stats continue to increase, our survey confirms that shoppers still have the desire to see and interact with products in person — 65% of respondents prefer in-store shopping for hands-on engagement with the merchandise. This ranked as a primary reason for respondents (no matter age or ethnicity). In addition to the 42% who like to avoid shipping costs, 40% of shoppers enjoy the immediate gratification of in-store purchases. These primary drivers of in-store shopping are consistent with the 2022 report. This presents opportunities for brands and retailers to create engaging hands-on experiences with products and leverage these interactions. When it comes to younger shoppers, they are motivated to shop in-store by factors such as wider selection, ease of returns, inspiration, the social aspect of going in-store, product samples and expertise/assistance from store associates (which were ranked higher by Gen Z and Millennials compared to their Gen X and Baby Boomer counterparts). Elevating these aspects of the in-store experience may help deepen connections with this maturing customer base. In-store technology is another area that brands and retailers can leverage to further engage with younger shoppers. The ability to tap-to-pay at checkout (39%), create a shopping list app on a mobile device (33%) or use a mobile app to track spending as items are added to a cart (32%) were topics of interest to respondents, with younger shoppers showing significantly more interest in these technology features. Other aspects of the in-store experience, such as store cleanliness, ease of checkout and consistently having items in stock continue to maintain relevance from a year ago. These factors rank highest for influencing shopper satisfaction with the in-store experience. Interestingly, experiential offerings, eye-catching visuals/displays and the overall store ambience are seen as less important. When looking for category-specific opportun-ities to improve the in-store experience, consider that immediacy of purchase is particularly important for grocery, medication and apparel. Brands and retailers in the cannabis and home decor categories should note that respondents rank discovering new products, enjoying the treasure hunt experience and the social aspect of going in-store as more important. The primary in-store shopping pain points have also remained the same since the 2022 survey. Products out of stock, the ability to find what they are looking for and the checkout experience continue to be areas of frustration. Also of note, approximately one-third of shoppers said wayfinding is a challenge. As companies continue to face labor shortages that impact some of the customer service-related pain points, brands and retailers remain tasked with addressing efficiency and service to elevate the in-store experience. Spontaneous Purchases According to the survey responses, brands and retailers have opportunities to entice shoppers to make spontaneous in-store purchases. Nearly half of survey respondents said they often make spontaneous purchases in-store compared to one-quarter who do so when online shopping. Price and promotions play a key role in grabbing shopper attention, with 57% being influenced to make a spontaneous purchase due to a sale price or promotional offer. This is especially true for Gen X and Baby Boomer respondents. One-in-three shoppers referenced making a spontaneous purchase when their usual product is out of stock or due to eye-catching product packaging. These factors, along with impactful displays, are particularly effective with Gen Z and Millennial shoppers. As brands and retailers consider merchandising strategies, it is valuable to note that respondents admitted to noticing a variety of in-store displays when shopping. They referenced the greater visual impact of endcap displays (44%), large displays at the front of the store (41%) and temporary/seasonal displays (40%). Gen X and Baby Boomers are more influenced by eye-catching endcaps or displays near checkout, while the attention of younger shoppers can be captured better with displays at the front of the store, in the walkaways and in the aisles. Once again, there is consistency with last year’s report. The 2023 top-ranked drivers of spontaneous purchases as well as the most noticeable in-store displays remain consistent with 2022 responses. In-Store vs. Online Shopping In-store versus online shopping habits from the current survey also match the 2022 results, with respondents noting that two-thirds of their shopping is done in-store. The percentages for how shoppers receive their online orders also remained consistent with delivery accounting for 47%, followed by in-store pickup at 37% and 16% using curbside options. Delivery is more often cited for online orders with clothing retailers, electronics stores and mass merchants, while in-store pickup is ranked higher in the convenience, dollar, craft, drug and home improvement categories. Brands and retailers continue to have an opportunity to increase sales when consumers pick up online orders in-store. Nearly two-in-five shoppers commented on making these additional purchases. Thirty-nine percent of respondents said they purchase additional items most or every time. This percentage is down seven points from the 2022 survey. This is another area to highlight the habits of younger shoppers. As more frequent users of in-store and curbside pickup, they are also more likely to purchase additional items during pickup trips. Future Outlook What does the future hold for shopping habits? As respondents predict their behaviors for the next six months, there are topics on their minds for brands and retailers to make note of — as well as a few additional trends to keep a close eye on. When it comes to purchasing private-label products, shoppers indicated selecting these items more often from grocery stores, mass merchants and dollar stores compared to their habits a year ago. These purchases are strongly influenced by better pricing and perceived value. However, consumers noted that pricing seems to be increasing on these items, impacting their perceived value. Thirty-one percent of shoppers said they are purchasing private-label items less often due to rising product costs. Walmart with its Great Value and Equate products topped the private-label loyalty list with 46% of respondents. Kroger (Private Selection and Simple Truth) was referenced by 15% and Costco (Kirkland) followed at 11%. For direct-to-consumer brands, it is important to note that three out of five shoppers said they are looking in-store for the brands they previously shopped for online. Instant access, in-store promotions and the ability to have hands-on product interactions are influencing this shift. When it comes to the influence of digital channels (ads on a smart TV, in the metaverse, in a livestream event and social media) on consumer behavior, respondents said they are most likely to shop through social media in the next six months. However, over half said they are unlikely to shop across any digital channels in the future. Regarding future spending, most respondents said their spending will remain the same or slightly increase across all categories. They anticipate shopping more often for groceries, cannabis, personal care items and pet care. Office supplies, electronics, home decor, apparel and sporting goods are categories noted for less spending. As brands and retailers look to meet and exceed customer expectations, it is important to note the issues weighing on consumers’ minds. Shoppers are most optimistic about the impact of COVID-19 and other global illnesses as well as the state of employment/wages. However, respondents believe the U.S. economy (47%), gas prices (47%) and inflation (51%) will get worse over the next six months. Forty-three percent of shoppers feel optimistic about the U.S. economy, with Gen Z and Millennials having a higher degree of optimism. As the world continues to change, shopper feedback from 2022 and 2023 demonstrates some habits are staying the same. Can brands and retailers keep consumers engaged and shopping at physical retail? Can they innovate and reduce shopper pain points? Only time will tell, so stay tuned: our 2024 survey will have more answers and insights. BEYOND THE PRINT EDITION The following charts are digital-only, bonus content.