Report: We’ll Shop For Books & Electronics Online, But Groceries Stay Firmly Instore

The third annual WalkerSands Future of Retail Study finds that the big consumer behavioural shifts have stalled, but significant changes are still happening below the radar.
Not surprisingly, consumers prefer to go online for books and electronics but groceries — and to a lesser extent consumer packaged goods — remain firmly wedged in the analogue world.
For some context, online takes about 14 per cent of the total US retail pie — similar to the UK experience — whereas in a market like Australia the figure is closer to seven per cent, according to organisations like Australia Post.
Meanwhile, according to the authors of the WalkerSands report, “It’s been a whirlwind couple of years in retail technology.”
The shifts aren’t quite as dramatic this year, they concede. However, they say that doesn’t make them any less important.
“Instead of consumer fascination with the latest headline-grabbing technology, we discovered much more subtle shifts in consumer opinion and behaviour with equally large implications. On the surface, it might feel like the future of retail has stalled. For example, this year’s study shows that e-commerce has reached a saturation point in many ways, and consumer excitement has waned for some of the sexiest emerging tech.”
Unlike recent years, the release cycle from vendors like Apple Pay, Amazon Prime Air and Alibaba has been more subdued. “But digging deeper into the data, we see that the retail technology space is still undergoing a major transformation — it’s just happening mostly behind the scenes.”
The study suggests four areas for future innovation:
- Growing importance of the supply chain Seamless shipping, delivery and returns have become more and more important to consumers in recent years, making them primary future drivers of e-commerce growth. Fulfillment has become a top investment area for retailers, with 29 per cent of capital expenditures last year going toward solutions like transportation and logistics, delivery options, order management, inventory visibility and returns management.
- Integration of in-store and online experiences Consumers maintain a clear preference for in-store shopping for most product categories, but they are receptive to blending their online and brick-and mortar experiences. While beacon technology implementations are limited, consumers are mostly relaxed about the implications with seven in ten consumers saying they would be willing to opt in to in-store tracking and mobile push notifications, assuming the right incentives are put in place. Although beacons have been slow to take off, this area seems ripe for adoption as retailers like Macy’s, Target and Lord & Taylor roll out their beta beacon programs to the masses. And, in a case of bringing the in-store experience online, virtual reality e-commerce — or v-commerce — seems to be entering the early-adoption phase and could represent the next big integration area for the in-store and online shopping experiences.
- The rise of luxury e-commerce The luxury goods category saw a dramatic spike this year, with the number of consumers who have purchased a luxury item like high-end jewellery in the past year more than quadrupling from 2014. This finding lines up with analyst predictions that online sales of luxury goods will triple to around $US80 billion by 2025, making it one of the fastest-growing areas of e-commerce.
- Slow mobile payments adoption Privacy and security concerns remain the primary reasons that consumers are hesitant to use mobile payment applications. This could explain why adoption has essentially remained flat year over year, with about a third of consumers having used these applications. Still, US mobile payment transactions are expected triple in 2016 to $27 billion, a sign that a few eager early adopters and the growth of Apple Pay could eventually force more widespread changes in consumer behaviour.
The study argues that retailers are in an investment and adoption phase and that business practices and consumer behaviour are yet to catch up with technology.
Free shipping
Think of it as the cost of doing business. Free shipping is identified that the thing that would most likely drive shoppers to do more online, with same-day shipping growing in importance.
Other issues such as returns policies are also emerging as a key influences. According to the study, “While nearly half of consumers (49 per cent) say same-day shipping would make them shop more online, it appears that relatively few are being given the option. Fewer than one in ten consumers (nine per cent) have used same-day shipping in the past year, compared to 29 per cent for one-day shipping, 70 per cent for two-day shipping and 86 per cent for regular shipping. More than half (51 per cent) say they have placed an order online and picked it up in store, which speaks to the rising popularity of click and collect.”
This article originally appeared on B&T’s sister business site www.which-50.com
Please login with linkedin to comment
Advertising Standards Bureau Bavarian Bier Cafes. einsights I Quit SugarLatest News

Entries now open for Snapchat Young Lions Australia
The annual search for the very best of Australia’s young media, creative, and marketing professionals has begun, with Cannes Lions Festival representative The Misfits announcing entries are now officially open for the 2021 Snapchat Young Lions Competition. The Young Lions Competition, which is proudly supported by Snapchat and The Trade Disk, gives blossoming media talent […]

Pureprofile Snares Former Kantar Director Of Data Solutions & Sourcing Young Ham
Global data and insights business Pureprofile Limited has today announced three new appointments to the Australian team to support its renewed growth strategy. Young Ham [pictured] joins the team in a global role as head of data, innovation and product, Kate Richards will hold the role of interim head of sales, data & insights ANZ […]

PHD Snares Former Hello Social Strategy Director Joshua Tan As Part Of Content Team Expansion
PHD unveils new-look content team which includes (judging by accompanying press photo) an astonishing beard & man bun.

Coca-Cola Loses Logo In ‘Open To Better’ Campaign
Here's some fun new work from Coke. Sure, it still rots your teeth and makes you fat, but fun nonetheless.

“You Can’t Nazi It!”: Amazon Called Out For Fatal Design Flaw In New Logo
New Amazon logo apparently resembles Hilter's moustache. Particularly after Adolf ate one too many blueberry muffins.

Mitsubishi Motors Australia Produces New Creative For International Markets Via Richards Rose
Mitsubishi Australia unveils latest work and wisely decided not to reinstate the truly awful "It's a Mitsi" tagline.

Taboola Lays Out Plans To Go Public
Taboola lays out plans to go public. And by that it apparently means the stock market, not the local park's lavatories.

Selena Gomez Fronts Latest PUMA Campaign
B&T has no idea what Selena Gomez actually does, however, it appears to have made her incredibly rich doing it.

Australian Open Tops YouGov Sport’s UK Australia 2021 Rankings
A list of Australia's most popluar sports are in and once again it's little joy for hotdog eating or the manure toss.

TV Interview Goes Awry After Viewers Spot Menacing Dildo
In this woman's defence, it may just be a scented candle. Admittedly one that bares remarkable similarities to a dildo.

The Three Must-Haves For Your Data Strategy
Here are the three must-haves for your data strategy. A fourth could possibly include the value of legumes in your diet.

Third-Party Data Sales Spike 109% For Lotame In APAC
Lotame has today announced 109 per cent growth in third-party data sales in the APAC region from Q2 2020 to Q3 2020. Across the APAC region, India saw 555 per cent growth, followed by Malaysia at 190 per cent and Taiwan at 178 per cent growth. Subsequently, Australia saw 43 per cent growth and New Zealand […]

28% Of Display Advertising Spend Goes To Ad Tech Services: ACCC Inquiry
Some 28% of display ad spend goes to the ad tech giants. Which explains the excellent sandwiches at their conferences.

Nielsen: Top 10 Media Owners Reach Over Half Of The Australian Population Each Month
Study finds top 10 media owners reach over 50% of the Aussie population. Other 50% looking for car spot at Westfields.

Dr Elaine Stead Wins $280k Damages In Defamation Suit Against The AFR’s Joe Aston
Long-running defamation case comes to an end. Barristers just happy to take those silly wigs off in this stifling heat.

Tim Robards Stars As Tim Tam Genie In New Arnott’s Campaign Via The Neighbourhood
The Tim Tam is undoubtedly Australia's culinary gift to the world alongside the pavlova & the throwdown beer receptacle.

McCann Sydney Snares Lucy Gavan For Senior Strategist Role
McCann Sydney inter-office UNO tournament takes sinister new twist with arrivel of new senior strategist.

VCCP Sydney Adds Tilly Treloar, Nathan Pashley & Heath Sims
B&T's editor does not like press photos of people not wearing socks. He's a stickler for neutralising foot odours.

Dentsu’s Ad Spend Report Forecasts 5.9% Growth In Australia In 2021
2021's starting to look good for ad spends. It's not looking good for overseas travel or people with a fear of needles.

David Pullinger, Former JC Decaux Sales Director, Appointed QMS Media GM
JC Decaux's David Pullinger jumps to rival QMS amid apparent awkward silences at the staff leaving party.

Stan Officially Announces Pricing For Stan Sport
Stan Sport will cost you $10 a month. Which is the same price as three avocados sans the monounsaturated fatty acids.

Facebook Introduces New Measures To Stop The Spread Of Holocaust Misinformation
Facebook looking to block Holocaust deniers. Still seems open to Flat Earthers and Elvis spotting, however.

Busting Six Of The Biggest Ad Tech Myths
Here, six of ad tech's biggest myths get expertly busted. There was a seventh, but it turned out to possibly be true.

Droga5 London Rolls Out New International Visual Identity For CUPRA
Droga5 London is arguably the hottest agency in the world right now. Not that anyone's booking Cannes tickets just yet.

Shutterstock Acquires 3D Marketplace TurboSquid
Shutterstock has acquired 3D marketplace TurboSquid. Read all the news here, admittedly in boring old 2D.

Are Media Appoints Melissa Mason As Digital Editor For ELLE & Marie Claire
Melissa Mason seriously considering putting an accent over the á following Elle & marie claire appointment.

M&C Saatchi’s Timothy Ng: “To Those Who’ve Thought About It”
M&C Saatchi's Timothy Ng muses on his career in advertising. It's a bit Nietschke, with a spot of Goethe thrown in.

WPP Named In Bloomberg Gender-Equality Index For Third Year In A Row
WPP named in gender-equality index for third year running as internal fight erupts over where to hang the certificate.

Australian Road Safety Foundation Utilises Geo-Targeting Technology To Protect Kids In School
The Australian Road Safety Foundation (ARSF) has teamed up with Spotify and some of Queensland’s leading musicians in a national first that will geotarget drivers within school zones. The Slow Down Songs campaign, which is being piloted in Queensland, will work to keep kids safe within school zones by dramatically slowing down songs and serving […]

Florida Financial Officer ‘Offers’ To Host Olympics With “Bonkers” Pitch
Florida says if Tokyo don't want the Games, they'll take it. Hopefully our own Dubbo might make similar overtures.