The retail industry is at a crossroads, facing challenges and opportunities as the year begins. With the rising cost of living burdening consumers and the growing dominance of online shopping, retailers must rethink their strategies to meet evolving customer needs.
Sony recognises the importance of innovation and adaptability in navigating this complex landscape. To gain insight into retailers’ priorities, we conducted a European-wide survey of over 1,000 respondents, including retail decision-makers and consumer shoppers, who were asked to share their shopping preferences, priorities, and the macro-economic factors impacting them.
The survey revealed that consumers are slowly starting to fall out of love with online shopping. While online stores still experience high usage, especially due to the cost-of-living crisis, a significant 37 percent expressed a preference for in-store shopping over online browsing.
SIGNIFICANT OPPORTUNITY
This shift in consumer sentiment presents an opportunity for retailers to maximise efforts to attract customers to physical stores in 2025. By equipping their spaces with engaging displays and interactive experiences, retailers can entice shoppers to visit brick-and-mortar locations. Eye-catching signage, banners and digital screens are able to highlight special offers prominently.
Today’s consumers demand that in-store shopping reflects the seamless experience of online shopping, while still offering the perks of the in-person experience. But a staggering 66 percent of all retailers surveyed (61 percent in the UK) acknowledged they lacked the necessary technology to mirror the ease of online shopping.
Brick-and-mortar stores face competition from ever-evolving technological advancements in online shopping. To avoid falling behind, retailers must explore ways to capitalise on the positive sentiment shift towards in-store shopping. Concerns such as the lack of accurate customer journey mapping and finding the right in-store tech to improve customer service were raised by 15 percent of European retailers (10 percent in the UK) and 19 percent (14 percent in the UK), respectively. This suggests that some retailers are starting to align with consumer demand, but the question remains whether they are reacting quickly enough.
While online shopping offers convenience, issues such as not being able to try on clothes and the inconvenience of returns negatively impact the experience. Brick-and-mortar retailers can capitalise on this by clearly displaying discounts.
Surprisingly, sustainability ranks low on retailers’ priorities, with only 1 percent of respondents (similar in the UK) overall intending to invest in sustainable technologies. This is surprising considering the growing concern for environmental issues among the “climate change generation”. Brick-and-mortar retailers have a chance to position themselves as a more sustainable option.
As 2025 begins, retailers must ensure they attract and retain customers. By leveraging technology and highlighting the best offers, they can position themselves for success.
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