in-store shopping is back

Are consumers returning to in-store shopping?

Sarah Stowe

Australians are preparing to shop smarter this Christmas to get ahead and combat the rising cost of living. And they are looking to neighbourhood outlets, and ethical and sustainable brands for their purchases, according to Shopper’s latest research. 

This survey mirrors the trend for in-person shopping spotted last year by Emarsys. It found 55 per cent of customers preferred to shop in-store post-pandemic. 

The trend remains in the lead up to Christmas, with Shopper’s study confirming 51 per cent are again opting for in-store convenience. 

Last year, it was postal and delivery delays that drove consumers to shop early; this year it is rising costs and increased financial pressures on households. 

These factors will see customers favour value over brand loyalty, so pricing becomes paramount for retail chains.

National Retail Association interim CEO Lindsay Carroll said “People are looking for ways to save money in some areas while spending big on the special occasions.

“Retailers are in a position now to guide purchase decisions for savvy shoppers through discounts and special offers.”

According to the Australian Bureau of Statistics retail sales increased by 0.6 per cent in September with shoppers spending on food and fashion.

Carroll said “Clothing, footwear and accessories also saw an increase of 2 per cent, compared to a fall of 2.3 per cent in August.

“This shows shoppers are ready to embrace the end of year celebration season with discretionary spending but are likely to be cutting back costs in their own ways.”

The research found online sales represented less than 12 per cent of sales during Christmas 2021, up just 1.5 per cent from 2020. 

Shopper’s study found 53 per cent of shoppers prefer to buy in-store for purchases over $500, highlighting the critical role physical retail continues to play. 

Karissa Fletcher, Shopper’s chief marketing officer said there is a move towards shopping with purpose.

“In addition to seeking value for money, shoppers are gravitating towards goods and services that reflect
their personal beliefs, with many now preferring brands that deliver evidence of social and environmental
benefit, while actively moving away from brands that don’t align with those values,” Karissa said.