Consumers are “increasingly frustrated” with physical stores

A third of shoppers would rather ‘wash the dishes’ than shop in-store, according to a new report by Capgemini’s Digital Transformation Institute, that surveyed consumers and retail executives from the UK, US, China, Germany, France, Italy, Spain, the Netherlands and Sweden.

The report, which spoke to 6,000 consumers and 500 retail executives, highlights a growing divide between retailers and consumers on the importance of physical stores, while 81 percent of retail executives see the store as important, less than half of consumers, 45 percent agree.

It found consumers were frustrated with the high street shopping experience that they say offers little of the convenience of online counterparts, with four in ten (40 percent) claiming shopping in-store is a ‘chore’. Dissatisfaction was shown to be highest in Sweden and Spain where a respective 54 percent and 49 percent of respondents said bricks and mortar shopping is a chore, while the lowest was in China and the US, 29 percent and 31 percent respectively.

The research found that some 54 percent of the retail executives surveyed admitted they had been slow to digitise their physical stores although it was a top priority for 78 percent of those canvassed. However, 40 percent added that they are limited by both existing technology investments and the capabilities of in-store staff.

The report also notes that consumers are exploring new purchase paths, with more than half willing to buy directly from manufacturers in the future or buy from technology players such as Google, Apple, and Facebook if they partnered with local retailers for last-mile delivery. Overall, 71 percent of consumers would consider bypassing traditional retailers, but this attitude is most prevalent in China, where well over three quarters (87 percent) of respondents would consider alternatives.

Consumers claim in-store shopping a chore in new retail report

Mike Petevinos, global head of consumer products and retail at Capgemini Consulting, said: “Shoppers are increasingly disconnected with the in-store experience, and it’s easy to see why. Most physical shops remain stubbornly ‘offline’, unable to offer the speed, flexibility and sheer ease of use that consumers take for granted on websites. Rumors of the death of the high street store may be exaggerated, but they are becoming uncomfortably close to the mark.

“Many retailers we spoke to admit they aren’t digitising stores quickly enough because making a business case for investment is challenging. This report makes it clear the real question retailers have to be asking themselves isn’t whether they can afford to transform the in-store experience, but can they afford not to?”

So what can retailers do? Well, the report notes that 70 percent of consumers still believe that stores have a role in their lives as they still want to “touch and feel products before they buy”, however, they not only expect to see the same features that they find online implemented in-store, but also want more incentives.

For instance, 75 percent of consumers want to check if stock is available before going in-store, while 73 percent expect same day delivery of products purchased in-store, and 68 percent expect loyalty points for spending time in store and repeat visits, with 61 percent added that they want store memberships that offer lower prices.

In addition, the survey revealed that stores need to do more than sell and fulfil, 57 percent of consumers want retailers to provide social spaces, learning experiences and inspiration, such as cooking or DIY workshops.

Kees Jacobs, consumer goods, and retail lead, insights and data global practice at Capgemini, added: “Brick and mortar stores of the future will need to be very different if they are to give consumers a reason to leave their computer, abandon their dishes and visit. What is clear from this report though is that they still have a big role to play, the industry is going to see a fascinating struggle take place in the next few years to decide what exactly the new breed of retail store looks like.

“The battle to create the modern retail experience, between traditional retailers with a long, successful history of high street store building and new digital entrants built around the internet and mobile technology, is finely poised.”