What Consumers Want One-third of consumers say they are spending more this year on experiences than possessions. When they open their wallets, here’s what they expect: Re t a i l 96% want a seamless experience across channels 68% want to shop at retailers with strong ESG initiatives 64% are willing to spend, but need to rely more on credit or buy-now-pay-later options 84% are seeking experiences outside the home, compared to just 42% in 2021 Source: Deloitte’s 2022 Retail Industry Outlook Promoting BNPL Consumers increasingly want the option to Buy Now, Pay Later (BNPL). Almost a third of consumers have used BNPL to finance a purchase, including 45% of millennials. Nearly half of consumers (47%) who take advantage of BNPL options anticipate using it more than they did in 2021, and 81% say they will use BNPL in the next year. Retailers that use promotional campaigns to promote their BNPL options can incentivize bigger purchases and make those purchases more accessible to a wider audience. Source: TD Bank’s Consumer Spending Index Shoppers’ Changing Habits Compared to before the pandemic, most people aren’t spending leisure days out shopping or lingering in stores. More than half (59%) are mostly or only shopping when they really need something, and 54% say they are shopping less frequently. Retailers can stay top of mind and encourage shoppers to return by using promotional products. Source: A&M Consumer and Retail Group Big Wins For Brick-And-Mortar Stores Brick-and-mortar sales grew faster than e-commerce sales in 2021, with physical stores growing 18% compared to online stores growing 14%. Many consumers want to touch and feel products before buying. By giving them promotional items when they’re in the store, retailers can add to the tactile experience that consumers crave. Source: U.S. Department of Commerce Out-Of-Stock Woes More than 60% of U.S. consumers have experienced out-of-stock items recently, and only 13% waited for the item to come back in stock. Some shoppers (39%) switched brands or chose another product, and 32% switched retailers. Source: McKinsey Working In Retail The retail industry employs a vast number of workers at all different levels and in many different roles. Consider these stats: • One in four American jobs is supported by retail • Retail supports 52 million jobs and represents the nation’s largest private-sector employer • Nearly eight out of 10 retail employees say they are happy with their jobs • Six out of 10 retail workers have been promoted and nine out of 10 have received a raise • 75% of retail employees choose to work part time • One in four of America’s working teenagers hold a retail job Source: National Retail Federation Fast Facts About Online Retail • Shoppers can buy from an estimated 12-24 million e-commerce sites • Around 2 billion people per year buy a product online, and 30% of these purchases end with a return request • Worldwide e-commerce projections show that about 95% of all purchases will be made online by 2040 • 73% of consumers use multiple channels to shop online • Sales initiated by voice command are projected to reach $40 billion this year • One in 10 omnichannel shoppers have made purchases via social media • 45% of consumers say social media influences their purchases Source: BalancingEverything.com Eroding Customer Loyalty According to a McKinsey report, more consumers are switching brands and retailers than at any time during the pandemic, and 90% continue to be open to buying what they need from any company. Retailers have an opportunity to use promotional products to build relationships, add value and inspire customers to return. 56 | JULY 2022 | GROW
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