The Retailer Autumn Edition 2021

THE RE TA I L ER

8

IN-STORE EXPERIENCE KEY TO BRING SHOPPERS BACK TO PHYSICAL RETAIL

Andrew Firth Head of Insights and Analytics Ipsos MORI

I n order to attract a new type of consumer back to high streets, Andrew Firth, head of insights and analytics at Ipsos MORI, argues, retailers need to gain a better understanding of shopper demands and motivations. National restrictions imposed on physical retail stores throughout 2020 and 2021 left consumers with no other choice than to pick up their phone, tablet or laptop and purchase goods online. In fact, KPMG analysis shows that UK online penetration increased from 16 per cent pre-COVID-19 to an expected median of 25 per cent in 2021. While this rate of online sales growth is expected to slow in the coming years it’s clear that the upward trajectory is here to stay, with experts recently predicting that approximately 50 stores are disappearing from our high streets each day.

The changing nature of the UK high street The pandemic accelerated the move towards online shopping - especially among younger generations. One study, published at the end of 2020, found that more than half of young adult shoppers - 30 per cent of Gen Z and 36 per cent of Millennials - planned to shop less in physical stores than they did pre-pandemic. Despite this, figures from the latest Ipsos Retail Traffic Index (RTI) paint a more positive picture for the high street’s recovery as we look ahead to 2022. While footfall remains below 2019 levels, Q3 saw an impressive rise of 10.7%, when compared with Q2, 2021. Innovative retailers are now looking to invest in their in-store experi - ence, believing that improving consumer confidence will attract more shoppers back to high streets.