Tensator study: Retailers need to improve in-store experience
Bay Shore, N.Y. --Consumers are growing disenchanted by the physical shopping experience, with 63% admitting they prefer to shop online, according to a study by Tensator Group.
Eighty-percent of shoppers have used a store to view a product before purchasing online, the report found. And 68% admitted to using their phone to check the price of an item online before deciding whether to purchase in-store.
In other results, 89% of shoppers feel that retailers need to make changes to the overall shopping experience to compete with their online counterparts. When quizzed about their preference for online retailing, 48% said they liked the fact they did not have to stand in a line, 42% found it cheaper than shopping in a store, and 29% expressed the fact that they simply did not have the time to visit an actual store.
“The online vs offline debate has raged on for a number of years, but these new figures put things into perspective,” saidAlan McPherson, CEO of Tensator Group. “Retailers need to be looking carefully at the overall customer experience to lure them away from behind their computer screens. It’s obvious from our research that customers are not finding in-store shopping an enjoyable or engaging experience and, even when they are in-store, their attention is drifting towards their mobile phones. Retailers need to look at bringing the convenience of online shopping in-store and make the customer experience efficient, stress-free and captivating.”
According to Tensator, data suggests stores are closing at a rate of 16 per day, which is a total of 3,003 stores across 500 main shopping centers during the first half of 2014.
“Unless retailers start to address some of the issues uncovered in our report, I’m genuinely concerned that the closure rate will get even higher,” McPherson said.
Michael Sheridan, chairman of global retail design agency Sheridan&Co, added that many stores are lacking in overall experience.
“Customers don’t feel wowed anymore, they don’t feel special and they don’t get excited about the prospect of shopping like they used to,” he explained. “It’s no longer escapism and, for many, it’s become a chore that they don’t have time for. It’s no wonder they are turning to their laptops and phones. We almost need to look back to some of the good old fashioned values of customer service and engagement and bring some of the drama and theatre back into retail. The challenge is to find new, innovative ways to do this. Retailers need to ensure customers leave the store with a smile on their face and it’s clear from this data that this isn’t happening at the moment.”