European retail is changing dramatically, presenting both challenges and opportunities to optimize sales across ecommerce and physical stores.
The profound transformation in European consumers’ spending habits is made clear in The State of Shopping 2024, conducted by ShopFully in collaboration with Offerista Group involving 11,000 shoppers that engage regularly with the companies’ marketplaces. The survey reveals five key trends in consumer behavior.
TREND 1: Demanding the best of both worlds
One of the survey’s most surprising discoveries is that 92% of respondents favor shopping in physical stores. This mostly is because they can see, touch and try. But the picture isn’t simply physical versus virtual. More than three quarters of European shoppers (78%) research online before finalizing purchases in-store.
Clearly consumers are demanding both physical and digital – and brands and retailers have a chance to bridge the gap and create a joined-up omnichannel approach that boosts sales. For example, better integration may mean stores learning from the digital side on how to better offer accessible and efficient shopping experiences.
TREND 2: Quality and price come first
Brand loyalty is low among European shoppers, with only 16% of respondents saying they’re consistently loyal. So what drives consumers to choose a specific brand? Two-thirds say quality is the main criterion, while 59% indicated price and 40% cited past experience.
Promotions also carry influence. Just under 60% of respondents say promotions play an important role in decision-making year-round, while only one third say they wait for traditional sales seasons to make big purchases. Evidently consumers are becoming more resourceful, thoroughly investigating deals and discounts before purchasing.
The environmental impact of purchases is important to 42% of European shoppers despite sustainable products commanding higher prices – and over half would be willing to pay more for greener products.
TREND 3: Every touchpoint matters
The European retail landscape is facing challenges due to inflationary pressures and 58% of consumers are pessimistic about their purchasing power. However, while shoppers may be armed with fewer euros to spend yet a vast amount of content and competition for their attention, there are still opportunities for retailers and brands.
Maintaining and nurturing customer relationships at every touchpoint of the journey, from online research on the couch to the in-store experience while purchasing, is essential.
Digital catalogues are preferred by 56% of shoppers as the way of researching products before buying in-store. Brand websites and apps are also used too, but consumers favor platforms and apps that bring together digital catalogues. With a multitude of stimuli and an array of choice, investing in strong online presence and maximizing every touchpoint is vital.
When it comes to in-store shopping, it’s worth noting that the main reason two-thirds (67%) of European consumers choose to shop this way is the ability to see, touch or try products before purchase. This motivation is closely followed by promotions and offers available in-store (44%). Immediate possession of the product is only important to a quarter of shoppers (27%).
TREND 4: Capitalizing on click and collect
Click and collect is used widely in Europe and is hugely advantageous. The survey found that when consumers collect purchases, 34% regularly buy other products in-store and 51% do so occasionally, totaling an impressive 85%.
In France, half of all click and collect consumers regularly make additional in-store purchases, and the remainder do so occasionally. However, Germany lags behind, with shoppers using the service far less frequently and only 1 in 10 making additional in-store purchases on the back of click and collect.
TREND 5: Regional and personal nuances matter
Consumer behavior varies based on geographic location and market sector, so a tailored approach is fundamental. For example, in grocery, 95% of consumers choose in-store shopping. Yet in DIY, clothing and toys, there’s more competition between physical and online purchasing.
With rising living costs, consumers are most likely to limit furniture and electronics spending. Elsewhere there’s a surprising opportunity for growth as French, Austrian and Romanian consumers would rather limit food spending than reduce pet care budgets.
In terms of regional differences, Italy has the highest percentage of consumers preferring to shop exclusively at physical stores at 65%. The survey reveals Germany is the most omnichannel country - using both offline and online channels interchangeably - while France is the least. And France has the highest brand loyalty at 24%, while Italy, Germany, Spain and Romania have the lowest at 13%.
Evidently knowledge and understanding of regional nuances is necessary. And, above all else, distributing personalized content – which is tailored to the interests and location of each customer – across different touchpoints is essential for brands and retailers.
Connecting brands, retailers and consumers
ShopFully is the European leader and a key global player in Drive to Store, helping retailers and brands improve their sales by connecting people online with local stores around them. Download The State of Shopping 2024 to discover further insights from the survey.
