The Retailer Autumn Edition 2022

THE RE TA I L ER

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GOING SHOPPING TO ALWAYS SHOPPING - HOW CONSUMER BEHAVIOUR IS SHAPING RETAIL

Katy Clark Head of Retail and Ecommerce Meta

U nderstand how uncertainty has driven digital acceleration within customer shopping behaviour and decision making If you asked the average person a couple of years ago what it meant to “go shopping”, it might be described as this; a few friends meeting up at a local store to shop around for the latest sales or find a new outfit for a special occasion. You might take your time flipping through racks or sorting through shelves to discover that one special item you wanted desperately to find. In some cases, you might even find some things you didn’t even knowyouwanted until you laid eyes on them, in the moment. If you fast forward to today and ask that same question, the answer will be different. The pandemic has significantly accelerated digital adoption and forced a convergence of the on and offline, therefore transforming how people discover, evaluate and purchase products. We now rely on multiple touch points throughout our purchasing journey, which is further accelerating hybrid shopping. In 2019 our friends or family may have been the trusted advisor on a new pair of trainers, but when was the last time you made a purchase based on a creator, celebrity or sports person? An expansion in touchpoints is enabling us to consume media in a new way, whilst also influencing our purchasing behaviour. As consumer expectations heighten, friction free convenience and speed have become the required normality. Shoppers expect to receive quick and seamless experiences from checkout to fulfillment, with ”Same Day Delivery” hashtags growing by 34% on Instagram1 .

The new definition of what it means to go shopping has significantly changed and likely for the long-term. But as consumers cautiously re-emerged and returned to stores this year, theywere once again served another challenge as the cost of living crisis took hold. Disruption to loyalty patterns continue to challenge businesses to stay top of mind as consumers are forced to seek alternatives. We’ve seen the cost of living crisis force consumers to adapt, experienc ing a drop in buying power due to rising prices forcing them to buy less, look for bargains, switch retailers and/or buy cheaper brands. Product shortages have accelerated omnichannel shopping as shoppers respond by migrating to new channels to purchase the desired products. While shoppers turn to new channels, blending digital and physical touchpoints, they have new expectations for seamless shopping that leverages the best of both worlds. Seamless shopping will remain essential as con sumers go hybrid. Anew era of multidimensional shopping is dawning. As a desire for more immersion, and connectivity drives the adoption of new technologies, AR and VR will transform the shopping landscape and enable us to shop across channels, devices and even realities. It is also prudent to note however, that as humans, we are creatures of habit and tried and tested methods must also play a part in the foundation of creating great experience - from 2020 to 2021 we saw a 233% increase in the term “QR codes” on Facebook1, sparking their renaissance in bridging the gap between the on and offline.