2020 was a year for the retail record books, and not in a good way! But amongst the bad and the ugly were some undeniably good outcomes – according to research firm McKinsey, consumers covered a decade in days in their adoption of digital technology, and the majority of brands expressed multitudes of agility and innovation as they sought to meet these new demands.
Read Qudini’s retail predictions for 2021
With Covid-19 still disrupting life as we know it, 2021 will no doubt be just as momentous, and while we live in an era where anything can happen (literally), here are some useful stats that indicate where retailers should focus their attention this year:
Online shopping
- Online sales grew by 36% in 2020, which is the highest growth seen in 13 years (IMRG).
- In 2019, Statista estimated that by the end of 2021, 73% of e-commerce sales will take place on a mobile device.
- 84% of US consumers have shopped online since the pandemic; 65% have shopped in-store. (Shopify)
- Baby Boomers: Nearly half (45%) say they’re shopping online more as a result of the pandemic, which is significant given that the vast majority (82%) typically make less than half of their purchases online. (NRF)
- Only 15% of consumers in a recent survey were happy with their online shopping experiences, according to Contentsquare, suggesting a need for richer and more personalized shopping experiences.
In-store
- 63% of consumers are still avoiding stores, especially Millennial and GenZ consumers and those from higher income households (Qudini).
- Health concerns are the main reasons stopping 81% of these consumers from visiting stores, followed by increased use of online shopping (51%) and financial concerns (36%) (Qudini).
- McKinsey found that even among those customers who have been “very satisfied” with their experiences online, some still regard online shopping as a temporary measure.
- In Deloitte’s pre-Thanksgiving pulse survey, 56% of consumers were anxious about shopping in stores.
- 73% of consumers are still hesitant to resume regular activities outside the home (McKinsey).
- Before Covid-19, 85% of consumers admitted to walking out of stores without buying anything because of lines and waits for service; during the pandemic, half (53%) of consumers said they are even more likely to do so. (Qudini)
- When asked how long shoppers are prepared to wait before walking out of stores, the average wait time was 11.15 minutes. A fifth (20%) of shoppers are only prepared to wait up to 3 minutes. 17% will wait between 4-7 minutes and 16% will wait between 8-10 minutes. Only 19% of consumers will wait more than 15 minutes. (Qudini)
- 63% of all consumers agreeing with the statement “A long waiting experience would make me less likely to return to a retailer”. (Qudini)
- 79% of consumers intend to continue or increase their usage of self-checkout in retail after COVID-19. Millennials and Gen Z are the widest adopters of contactless activities. (McKinsey)
- 83% of brands are now using contactless payment technology, an increase from 75% last year and 57% the year before, according to a report from NewStore.
BOPIS/Curbside collection
- 68% of US shoppers say that they are going to make more use of drive-up curbside collection facilities at stores in the future and almost 60% say they will make greater use of collect from inside store services (GlobalData).
- Two-thirds of Baby Boomers have tried BOPIS; of those, 63% said it improved their overall shopping experience (NRF).
- 87% of consumers want restaurants and other brands to continue to offer curbside pick up and other processes that limit the need for in-person visits (Medallia Zingle).
- 77% of consumers take the need for in-person contact into account when deciding whether or not to visit a business (Medallia Zingle).
- As of August, about three-fourths of the top 50 store-based retailers in the United States offered curbside pickup, according to Coresight Research.
- US BOPIS and curbside collections orders surged 208% between 1 April and 20 April 2020, compared to the year earlier (Adobe Analytics).
- Adobe also found 23% of online shoppers prefer some form of BOPIS over having orders delivered to their homes.
Digital innovation
- 48% of retailers are reportedly pursuing “digital transformation” in 2021. Nearly two-thirds said they are making some kind of investment in e-commerce, while 39% said they are investing in physical stores (McKinsey).
- Most retailers are planning to use social media (79.1%), digital marketing (79.1%), and smartphone apps (68.0%) to enhance the customer experience (Fujitsu).
- 75% of Millennials say a brand’s social media presence impacts their purchase decision (Animoto).
- Only three in 10 executives rated their organizations as having mature digital capabilities and, as such, many are planning “major” investments in e-commerce, contactless capabilities, and store technology upgrades (Deloitte)
- Loop Ventures forecasts that 75% of US households will own a smart speaker by 2025.
- 63% of brands now have a live chat capability, an increase from 38% in 2019 and 33% in 2018, (NewStore).
- 45% of consumers said they would find it useful if retailers offered virtual services (Qudini).
Consumer loyalty
- 76% of consumers have changed stores, brands or the way they shop since Covid-19 (McKinsey).
- Almost six in 10 (57%) are willing to shop at new brands or stores for the first time (Shopify).
- 68% of retailers gained new online customers due to the pandemic, with 46% saying their e-Commerce customers were making more frequent/larger purchases (Retail Touchpoints).
Sustainability and social responsibility
- 50% of consumers want more sustainability in the fashion industry (Nosto).
- 75% of consumers want to see less packaging (Nosto).
- 31% of GenZ consumers are visiting stores less as a result of environmental concerns, while 19% of Millennials said the same (Qudini).
- 53% of consumers prefer green or sustainable products, and 49% respond positively to retailers making a donation to a cause with each purchase (Shopify).
- Almost one-quarter (23%) of consumers shop at local or independent retailers to reduce their environmental impact (Shopify).
- 41.8% of consumers want brands to be socially responsible (Shopify)
- 50% of consumers are willing to pay more for environmentally friendly products (Shopify)
- 62% of Millennials surveyed said it’s important to buy from companies that support their own political and social beliefs (5W PR study).
Retail strategy
- 73% of chief marketing officers say they will depend on current customers rather than developing new markets to foster growth (Gartner).
- 39% of chief marketing officers will focus on their current market by increasing the sales of existing products – while 34% will focus on introducing new products to the same customers (Gartner).
- 42% of retail CFOs reported that they expect to restructure or reorganize as fallout from the Covid-19 pandemic persists into 2021 (BDO survey data).
Influencer marketing
- Influencer collaborations had 57% more reach and impact in 2020 compared to 2019 (Klear).
- 70% of teens trust YouTube creators more than traditional celebrities (Google).
- The influencer marketing industry is set to hit $15 Billion by 2022 (Business Insider).
