New research by financial technology platform Ayden shows most Australians prefer shopping for products in store rather than online.
Ayden polled more than 1000 consumers and 514 businesses in Australia as part of a global study of more than 12,000 businesses and 36,000 consumers worldwide.
The Australia Retail Report 2023, which was conducted for Ayden by KPMG, reveals 73% of Australians prefer shopping in store.
“Despite the meteoric rise of ecommerce and widespread innovation in the retail sector during the pandemic, Australians love to shop in store, more than any other market in our global study,” Ayden said.
By comparison, 65% of shoppers in the US and 49% in the UK prefer bricks and mortar shopping.
Two-thirds of Australian consumers believe a physical store is an important touchpoint between a business and its customers, while 48% of respondents said they specifically attend physical stores for the customer service provided or to get help that they cannot get online when selecting a product, and 34% say they have rediscovered the enjoyment of touching, feeling or trying products in store before they buy, which they had missed during COVID-19 lockdowns.
Australian Retail Association chief executive Paul Zahra confirmed to the Australian Financial Review that traditional bricks-and-mortar retailers had bounced back with force after the lockdowns, with consumers” returning to the stores in droves, relishing a face-to-face community experience”.
However, shoppers are now spending more time bargain hunting, either searching for the best deals online, in stores, or both. Almost a third of them (31%) are holding off from purchasing until seasonal sales like Black Friday, Boxing Day, or Click Frenzy for added discounts.
Ikea and Lego bet big on the future of the store
The Financial Times reports that two Scandinavian corporate giants — the privately owned Ikea and Lego — are betting big on the continued relevance of the store.
“You remember [people talking about] the death of the book, and now the coolest thing is the book,” said Jesper Brodin, chief executive of Ingka, the main Ikea retailer.
“I don’t want to be retro. But people want to have an experience.”
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