European retail is experiencing significant shifts, presenting both opportunities and challenges for optimising sales across e-commerce and physical stores. This transformation is being driven by changes in consumer spending habits, as highlighted in The State of Shopping 2024 report by ShopFully, in collaboration with Offerista Group. The survey, involving 11,000 shoppers, identifies several emerging trends in consumer behaviour.
One key insight from the survey is that 92% of respondents still prefer shopping in physical stores, mainly because it allows them to see, touch, and try items before buying. However, this does not mean that digital shopping is out of the picture. In fact, 78% of consumers research online before making a purchase in-store. This reveals that shoppers want the benefits of both physical and digital experiences. Brands and retailers can capitalise on this by creating seamless omnichannel strategies that combine the best aspects of both worlds, making the overall experience more efficient and accessible for consumers.
Another significant trend is the shift away from brand loyalty. Only 16% of respondents say they consistently stick to a specific brand. Instead, most shoppers prioritise quality, with two-thirds of them citing it as their primary concern. Price follows closely, as indicated by 59%, while past experience also plays a role. Promotions are influential, with nearly 60% of respondents considering them important throughout the year, as opposed to just waiting for sales seasons. Consumers are becoming more resourceful, thoroughly examining deals before making purchases. Sustainability is also gaining importance, with 42% of shoppers considering the environmental impact of their purchases. Over half would be willing to pay more for greener options, even though they often come with higher prices.
Despite inflationary pressures affecting European consumers, with 58% feeling pessimistic about their purchasing power, there are still significant opportunities for retailers to maintain customer relationships at every stage of the journey. From online research to the in-store purchasing experience, maximising every interaction is crucial. Digital catalogues have become particularly popular, with 56% of respondents using them to research products before buying in-store. Consumers also turn to brand websites and apps, although they tend to prefer platforms that aggregate multiple digital catalogues. Given the array of stimuli and choices available, a strong online presence that invests in every consumer touchpoint is essential.
When it comes to physical stores, two-thirds of shoppers choose this route primarily because they want to see, touch, or try items before buying. Promotions and special offers also play a significant role in attracting customers, with 44% saying it influences their choice to shop in-store. Interestingly, the desire for immediate possession of a product ranks relatively low, with only 27% of shoppers stating that it is an important factor.
The popularity of click and collect services across Europe presents another opportunity for retailers. The survey indicates that 34% of shoppers who use click and collect regularly buy additional items during their visit, with another 51% doing so occasionally, resulting in an impressive 85% making extra purchases. France leads this trend, with half of the click and collect shoppers frequently making additional purchases. Germany, on the other hand, shows less engagement with this service, with fewer shoppers using it and only a small percentage making additional purchases.
Consumer behaviour is also influenced by regional and market differences. In grocery shopping, for instance, 95% of consumers prefer shopping in-store, while categories like DIY, clothing, and toys see a more balanced split between physical and online shopping. With the rising cost of living, consumers are more likely to cut back on furniture and electronics spending, whereas many, especially in France, Austria, and Romania, are reluctant to reduce pet care expenses, even preferring to limit food spending first.
Regional differences further highlight the diversity in consumer preferences. Italy, for instance, has the highest percentage of shoppers favouring physical stores exclusively, at 65%. In contrast, Germany leads in omnichannel shopping, with consumers frequently alternating between online and offline channels. France, interestingly, is the least omnichannel-focused and has the highest brand loyalty rate at 24%. Meanwhile, countries like Italy, Germany, Spain, and Romania report the lowest brand loyalty, at just 13%.
The findings underscore the importance of understanding and addressing regional nuances in consumer behaviour. Retailers and brands must not only adapt their approach based on location but also focus on delivering personalised content tailored to the specific interests and needs of each customer. Distributing such content across different touchpoints will be crucial for effectively engaging with consumers and maintaining their loyalty.
itim Group plc (LON:ITIM) is a SaaS-based technology company that enables store-based retailers to optimise their businesses to improve financial performance and effectively compete with online competitors. Itim adds retail value by helping multi-channel retailers optimise their business and their stores to improve financial performance and compete more effectively with the “Amazons”.
