The Resurgence of In-Store Shopping

There was a time where we thought brick-and-mortar stores were on their way out. 

With online retail giants like Amazon, social media emerging as a new channel for direct-to-consumer sales, and the safety concerns of the COVID-19 pandemic, many anticipated a massive slowdown of in-store shopping. 

Now, in 2023, there has been a “retail renaissance” of sorts. In 2022, only 21% of global retail sales were done online. That leaves a whopping 79% of sales to in-person retailers. 

Shoppers are returning to stores for a variety of reasons. 

They enjoy the immediate gratification of immediately getting the item they’re buying, and not having to wait on shipping times or pay delivery fees. While online images and reviews can be helpful for making purchases, nothing replaces being able to hold an item in your hands and see for yourself if it meets your expectations.

There are also certain categories that over-index in person shopping. For example, the food and groceries category is bought in stores the vast majority of the time - with 81% of U.S. consumers preferring to buy groceries in person instead of online. 

Virtual shopping can only go so far. Now more than ever, positive retail experiences are in demand. 

Does this mean that online shopping is irrelevant? 

Far from it. However, it is key that brands and retailers pay attention to ways that shoppers are using their mobile devices, which bring a point of convergence between online shopping and in-store interactions. 

How often do you shop in-store, find a product, and check online if you can find it for cheaper someplace else? How often do you look up product reviews while shopping? How often do you redeem mobile coupons or offers from an email, mobile web, or through an app? 

These are the kinds of shopping behaviors that many millennials and Gen-Z are participating in. 

People are shopping in-store - and bringing their smartphones with them. 

Is there a channel that can bridge the gap between in-store shopping and mobile engagement? 

There is - it’s called the mobile wallet. 

The mobile wallet, like Apple Wallet or Google Wallet, is a powerful channel by which brands and retailers can drive mobile engagement that leads to in-store purchase  - and ultimately, customer loyalty. 

While brick-and-mortar isn’t going anywhere any time soon, brands and retailers would be wise to take an omnichannel approach to reach consumers where they are. 

And these days, that means through the mobile wallet.