Many retailers today face a stacked deck. Consumers are spending their income at the highest rate in decades but not on the retail staples that have traditionally filled retailers’ coffers. “The State Of The US Retail Shopper In 2018” report examines the key personal economic factors responsible for turbulence in the US retail industry while highlighting why consumers are being lured to retailers that offer:
- The best value. Free shipping and the final price are the most influential factors in determining which retailer US online adults will shop at.
- Greater convenience and assortment. US online adults shop online either because they could not find a product in a physical store or because it is easier to find a specific product online. Seventy percent of US online adults choose Amazon first when they shop online because of the vast product assortment Amazon offers.
- Engaging in-store experiences. Even though online sales count for half of US retail market growth, retailers still need to focus on the physical-store customer experience. Innovative retailers, such as Bonobos and IKEA, have taken advantage of the in-store experience to differentiate themselves from competitors.
For longer-term success, digital business professionals need to stop obsessing over their brand image and benchmarking themselves against competitors. Instead, we recommend that retailers focus on the four rules of digital business transformation — digital experience, digital innovation, digital operations, and digital ecosystems — to thrive. To make sense of these shifts in shopper behavior and how you should be responding, see the full report.