Study: Most Shoppers Value In-Store Experiences, Financing Options

Financial services company Synchrony has released its ninth “Major Purchase Journey” study revealing the latest consumer spending trends, including that 5% more shoppers are obtaining financing for large purchases today versus two years ago.

Just as notable, the study highlights the role retail associates are playing in financing decisions, and that shoppers 55 and older have returned to brick-and-mortar stores in significant numbers, the only demographic to do so in the wake of the COVID-19 pandemic, according to a Synchrony media release.

Half of survey respondents said that recent price increases have led them to seek financing options, and 66% agreed that financing makes larger purchases (more than $500) more affordable. Retail associates are playing an integral role in the shopping experience as 81% of respondents said they directly interacted with a salesperson while shopping for their most recent purchase, per the release.

Retail associates are also helping with financing, with 55% of respondents saying they research financing by asking the associate. And among those who obtained financing in-store, 51% were approached by the associate.

"The results of the 'Major Purchase Journey' study illustrate that rising costs have made financing more appealing for shoppers, particularly when they are looking to buy relatively expensive products such as home improvements, jewelry or electronics," Michael Bopp, executive vice president, chief growth officer, Synchrony, said in the release. "Opportunities exist for retailers to drive engagement with financing throughout the purchase journey to increase sales conversion."

The study also notes the trend of older shoppers returning to physical stores. This year, 74% of shoppers aged 65-plus and 71% of shoppers aged 55-64 purchased in-store, compared with 66% and 67%, respectively, two years ago. This differs from shoppers in the 18-44 and 45-54 age groups, whose in-store purchases remained relatively constant over the past two years, according to the study.

"Retailers should pay close attention to the trend of older shoppers coming back to physical stores," Bopp added. "If this behavior continues, retailers may want to consider everything from product mix to store layouts to welcome these customers."

The biennial study surveyed 3,602 individuals who made a purchase of $500 or more in the past six months. The survey covered several product categories including furniture, electronics, jewelry, appliances, flooring, home improvement and automotive.

The study also shows consumers returning to pre-pandemic levels of shopping behaviors, with mobile device usage down significantly versus its peak in 2021 and the in-store experience and salespeople continuing to play a significant role along the purchase journey.

Other takeaways include:

• 77% of shoppers use retail credit cards to take advantage of unique benefits when making a "major purchase."
• 58% did in-store research before making a major purchase.
• 65% said the in-store experience is an essential part of retail shopping.
• 81% directly interacted with a salesperson while shopping for most recent purchase; and 68% ultimately made their purchase in-store.
• The percentage of younger shoppers using mobile wallets was double that of every other age group surveyed.
• Younger shoppers continue to follow more of a digital journey, with 61% of shoppers ages 18-44 saying they conducted research through mobile channels.