BRICK -AND- MORTAR BLINDNESS
A look at consumers’ attitudes toward physical retail stores in the U.S. and the U.K. A legacy brand if there ever However, as these stores closed left and was one, Sears opened in 1892 right, many consumers didn’t care or even notice. Earlier this year, Sailthru found that and flourished for decades as only 39.3% of people in the U.S. actually the largest retailer in America… miss these retailers. While the number is until it wasn’t. Sears recently noticeably higher in the U.K. (58.9%) it’s still filed for Chapter 11 bankruptcy not high enough to be a passing grade. protection, not six months after Read on to learn more about shoppers’ Toys “R” Us closed all its stores. attitudes toward physical retail, with insights broken out by region and age group. We’ve That’s just the tip of the iceberg. The number also learned more about which emerging of stores closed in the U.S. last year totaled technologies improve both the in-store and 7,000, a 200% increase from the previous online shopping experiences in consumers’ year. Across the pond, 5,855 stores closed on eyes (and which ones don’t) as well as which the U.K.’s high streets. retailers in particular they miss and which There’s no question that the retail landscape ones they’d like to see cross the digital is evolving rapidly. With more than $453 divide. Contact us here. billion in sales last year, ecommerce is perpetually on the rise, growing 15.7% during the first half of 2018. Still, no matter how much people buy online, they ultimately do far more shopping in physical stores. METHODOLOGY
How We Measured Consumers’ Attitudes Toward Brick and Click
In June 2018, Sailthru surveyed 1,000 Americans, weighed against the U.S. Census Bureau Current Population Survey for age, gender and region to be representative of the overall population. We also surveyed an additional 1,081 people in the U.K., asking:
As more high street retailers close, how Which of the following innovations has this typically influenced you? have enhanced your in-store shopping ££ I missed them a lot experience the most? The ability to: ££ I missed them ££ Use mobile payments (e.g. Apple Pay) ££ I noticed and I didn’t care ££ Use app loyalty cards (no physical cards) ££ I was happy the stores were gone ££ Have associates checkout without a register ££ I didn’t notice ££ Try/buy items in-store and have them shipped home ££ Book time with a store associate via website ££ None of the above When a high street retailer closes in your neighborhood, do you believe there’s generally an impact Which of the following innovations on your town/neighborhood? have enhanced your in-store shopping ££ Yes, there’s usually a positive impact experience the most? The ability to: ££ Yes, there’s usually a negative impact ££ No influence/I don’t know ££ No, there’s usually no impact ££ I don’t like receiving emails ££ I don’t think about the impact ££ Redeemed an emailed discount in-store ££ Purchased an item in-store shown in email ££ Attended an in-store event shown in email
Do you have more satisfaction (with the experience, with the item purchased, etc.) when you purchase an item in-store or online? ££ I have more satisfaction shopping in-store ££ I have more satisfaction shopping online ££ Neither, shopping is an overall hassle ££ I don’t know METHODOLOGY
How have emails from brands Which online-only brand would you influenced your in-store shopping want to have more physical shops?
experience the past 6 months? U.S. ANSWERS: ££ No influence/I don’t know ££ Amazon ££ I don’t like receiving emails ££ Wayfair ££ I have redeemed an emailed discount in-store ££ Zappos ££ I have purchased an item in-store shown in email ££ ASOS ££ I have attended an in-store event shown in email ££ Rent the Runway ££ None (+)
U.K. ANSWERS: How do push notifications from ££ Boohoo ££ ASOS brands on mobile influence your ££ Missguided in-store shopping experience? ££ Prettylittlething ££ Quiz Clothing ££ No influence/I don’t know ££ None of the above ££ I don’t like receiving push notifications ££ I received a promotion and used it in-store ££ It helped me find a store location near me ££ I purchased the featured item in-store Which brick-and-mortar stores do ££ I ordered an item to a store for pick-up you think should close their stores and become online only? Of the stores that have closed, which U.S. ANSWERS: retailer do you miss the most? ££ Burberry ££ Neiman Marcus U.S. ANSWERS: ££ REI ££ I don’t miss any ££ H&M ££ Sears ££ Target ££ Toys “R” Us ££ None of them ££ Gamestop ££ I don’t care ££ Ascena Group U.K. ANSWERS: ££ Michael Kors ££ River Island ££ Kmart (+) ££ Ted Baker ££ (Other responses) ££ Debenhams U.K. ANSWERS: ££ Burberry ££ New Look ££ Marks and Spencer ££ Store Twenty One ££ None of the above ££ House of Fraser ££ Mothercare ££ I don’t miss any KEY TAKEAWAYS
Consumers Do Notice When Retailers Vacate....
In the U.S. and the U.K., a record number of retail stores closed over the past year: more than 12,000 between the two countries. And while many of the 2,081 consumers we surveyed were oblivious or indifferent, plenty of others — 58% in the U.K. and 51.7% in the U.S. — believe these closures negatively impact their neighborhoods. However, when presented with a selection of legacy retailers and asked which ones they miss the most, the most popular answer was “none.”
...But If the Brands Don’t Have a Strong Balance Between Brick and Click, They Don’t Care
“None” was one option. Others include Toys “R” Us and Sears in the U.S., and House of Fraser and New Look across the pond. One thing these retailers have in common is they largely failed to adapt to the modern shopper. While the overwhelming majority of sales still happen in physical stores, today’s customer journey is more complicated than ever, with many digital touchpoints along the way. This allows retailers with a strong brick-and-click balance to pull ahead. Case in point: Amazon, which 40% of U.S. respondents would like to see open more physical locations.
How Technology Enhances the Experience
According to 46.3% of the British and 37.9% of American respondents, in-store shopping is more satisfying than ecommerce, while only a respective 15.5% and 16.7% of people prefer shopping online. Among those consumers, email and mobile messaging tend to factor into the overall shopping experience. For about a quarter of U.K. consumers, email has inspired action, whether that’s visiting a store or redeeming a discount they received. Similarly, one-third of those in the U.S., particularly between 18 and 24 years of age, have been influenced by push notifications — redeeming a discount or purchasing a recommended item, for example. If a store closed on your street, would you even notice?
We gave both sets of respondents the same questions, but received very different answers. Between the U.K. and the U.S., more than 12,000 physical stores closed last year, a record number in both countries. However, British shoppers were far more likely to care. Forty percent missed these retailers, while an additional 18.9% missed them a lot. In Scotland and Wales, 55.1% missed the stores, at least a little.
Indifference was four times as common in the U.S., where 38.9% of shoppers didn’t even notice that the stores closed. Of those who did notice, 39.6% missed the retailers while 18.3% didn’t care that they were gone. That attitude was most prevalent in the Northeast. Two-thirds of respondents there either didn’t notice, didn’t care or were even happy the stores were shuttered, as opposed to 54% of respondents in the Midwest, and 60% in the South and the West.
When a national retailer closes in your town/neighborhood, do you believe there’s generally an impact on your town/neighborhood?
U.S.
Yes, there’s usually a negative impact 51.7% I don’t think about the impact This is 23.0% no love lost in No, there’s usually no impact the U.S. for national 16.7% retail chains Yes, there’s usually a positive impact 8.6%
U.K.
Yes, there’s usually a negative impact 58.8% Nearly 60% of I don’t think about the impact 21.2% respondents missed the No, there’s usually no impact 11.5% high street retailers that closed in 2017 Yes, there’s usually a positive impact 8.5% There goes the neighborhood
In the U.K., 58.8% of these consumers believe high street retail stores closing has a negative impact on the neighborhood, while only 8.5% believe the opposite. Broken down by age, the 18- to 24-year-olds were least likely to notice an impact, while the answers were fairly even among the other segments.
When national retailers in the U.S. shutter, only 8.6% of the American consumers we surveyed believe there’s a positive impact on their neighborhood. Far more (51.7%) think these closures are ultimately negative for their neighborhoods, while 39.7% don’t think there’s an impact… or don’t think about it at all. The youngest respondents and those in the South are less likely to notice or care. It’s possible that walking past these retailers regularly is a factor. According to Walkscore.com data, four of the 10 most walkable American cities are in the Northeast; only Miami represents the South on the list.
U.S.
In 2017, nearly 7,000 store closure announcements were made, a 200% increase compared to 2016. As more national chains close, how has this typically influenced you?
I didn’t notice 38.9% I missed them 28.3% While many Americans don’t I noticed and I didn’t care 18.3% notice one way or I missed them a lot 11.3% the other, more than I was happy the stores were gone 3.2% half believe store closures negatively impact their U.K. neighborhood
The U.K.’s high streets suffered 5,855 store closures in 2017, more than in any year since 2010. As more high street retailers close, how has this typically influenced you?
I didn’t notice 26.9% In the U.K., Scottish I missed them 40.0% and Welsh respondents I noticed and I didn’t care 11.8% were more likely to feel I missed them a lot 18.3% the effects of shuttered I was happy the stores were gone 2.3% retailers So hard to say goodbye - or is it?
Of the 5,855 stores that closed on the U.K.’s high streets, which ones did consumers miss the most? We gave them four options — New Look, Store Twenty One, House of Fraser and Mothercare — and the most popular answer was “none.” While 44.6% don’t miss any of these retailers, 24.7% miss House of Fraser the most, particularly among 45- to 54-year-olds. However, the youngest segment are saddest to say goodbye to Store Twenty One, while those between 35 and 44 miss Mothercare the most.
Similarly, 36% of American respondents don’t miss any shuttered retailers, the largest group we surveyed. However, of those who do, we saw more variety by geography than age group. Consumers tended to be more nostalgic for the fallen retailers hailing from their respective regions. Northeasterners are more likely to miss Toys “R” Us, which is headquartered in New Jersey, while Southern and Midwesterns miss Chicago-founded Sears more.
Of the stores that closed or have announced closings, which retailer do/will you miss the most?
U.S. I don’t miss any 36.0%
Sears 24.0% Hailing from Chicago Toys R Us 21.3% and New Jersey, respectively, Sears Gamestop 6.2% and Toys “R” Us Ascena Group 5.9% generated more nostalgia from Michael Kors 2.9% consumers in their Kmart (+) 0.6% home regions (Other responses) 3.1%
U.K. I don’t miss any 44.6%
New Look 14.9%
Store Twenty One 6.0% U.K. consumers were much more emphatic 24.7% House of Fraser about not missing any 9.7% shuttered retailers Mothercare Let’s (Amazon) go to the store
Is there a retailer consumers would have preferred to close? Most people in the U.K. said no, but 18% of respondents would be happy to see Burberry shutter its physical locations and become online-only. It’s worth noting that while luxury brands largely underperformed in our second Retail Personalization Index, Burberry scored in the top half, thanks to strong “wear this with” recommendations and a well-developed mobile app. Among American consumers, 29.2% of consumers agreed, though those older than 44 are more likely to prefer Neiman Marcus become digital-first.
On the flip side, Americans were far more likely to want to see online retailers develop more of a physical presence. When we asked U.K. consumers whether they’d like to see more brick-and- mortar stores from ASOS, Boohoo, Missguided, Prettylittlething or Quiz Clothing, ASOS was the number two answer. With 63% of the vote, the most popular choice was “none.” However, in the U.S., only 2.5% of respondents shared that sentiment. Forty percent answered Amazon, which has already pledged to open 3,000 physical locations by 2021.
U.S. 1,300 answers from 1,165 respondents
Which online-only brand would you want to have more physical shops?
Amazon 475 Wayfair 360 Luckily for U.S. Zappos 214 respondents, Amazon pledged to ASOS 88 open 3,000 physical Rent the Runway 91 stores by 2021 None (+) 30
U.K. 1,532 answers from 1,309 respondents
Which brick-and-mortar stores do you think should close their stores and become online only?
River Island 126
Ted Baker 169 The overwhelming Debenhams 104 majority of U.K. consumers would Burberry 236 prefer online retailer Marks and Spencer 72 stay in their lane None of the above 825 In-store vs Online
What do those opinions say about people’s attitude toward online shopping versus brick-and-mortar? Nearly half (46.3%) the British consumers we surveyed experience more satisfaction from making purchases in physical stores, while 15.5% prefer shopping online. Younger shoppers are more likely to fit into that group, though ecommerce was actually the least popular answer. More people (17.4% and 20.8%) think shopping is a hassle or don’t know, respectively.
Stateside, people also prefer brick-and-mortar (37.9%) to online (16.7)% shopping, while 20.4% don’t particularly care to shop anywhere. Regionally, the Southerners are more inclined to go into stores than their Northeastern counterparts (41 vs. 36%) who tend to be bigger online shoppers.
Do you have more satisfaction (with the experience, with the item purchased, etc.) when you purchase an item in-store or online?
U.S.
I have more satisfaction shopping in-store 37.9% American consumers prefer shopping I don’t know 25.1% in physical stores, Neither, shopping is an overall hassle 20.4% especially in the I have more satisfaction shopping online 16.7% South
U.K.
I have more satisfaction shopping in-store Though younger 46.3% consumers get more I don’t know 20.8% satisfaction from Neither, shopping is an overall hassle 17.4% online shopping, the majority of British I have more satisfaction shopping online 15.5% respondents prefer brick-and-mortar Ecommerce enhancements in physical stores
Offline, Americans are more likely than British consumers to think technology has improved in- store shopping. When given the choice between mobile payments, using in-app loyalty cards, have associates check them out without a register, shipping their purchases home or pre-booking time with a sales associate, 56.3% of Brits chose “none of the above,” compared with 38.9% of Americans.
Of those who did pick an answer, mobile payments were the most popular in the U.K. In the U.S., shipping home purchases was the most common answer, especially among those consumers older than 44. Those who are younger are more appreciative of their ability to store their loyalty in-app.
On the flip side, we asked about the advantages of ecommerce, such as greater inventory, the ability to virtually try on products, real-time recommendations and online sizing tools. Americans were generally easier to please online, as well; 66.8% selected an answer other than “none,” compared with 58.4% of the Brits. In both countries, the expanded inventory was by far the most popular feature.
Which of the following innovations have enhanced your in-store shopping experience the most? The ability to: Most people are indifferent about in-store technology, U.S. 1.156 answers from 1,049 respondents though older American Use mobile payments (e.g. Apple Pay) 122 consumers like the idea of being able to ship their offline Use app loyalty cards (no physical cards 168 purchases home Have associates checkout without a register 193 Try/buy items in-store and have them shipped home 205 Book time with a store associate via website 59 None of the above 409
U.K. 1.183 answers from 1,118 respondents Mobile payments are the Use mobile payments (e.g. Apple Pay) 199 most popular example of in-store technology in the Use app loyalty cards (no physical cards 106 U.K., though most consumers Have associates checkout without a register 54 don’t really care Try/buy items in-store and have them shipped home 153 Book time with a store associate via website 41 None of the above 630 In-store inspiration from the inbox
For 34% of the U.K. consumers who find brick-and-mortar more satisfying, email factors into their shopping experiences (especially for those in Scotland). About a quarter of respondents have been driven to action by email marketing, whether that’s visiting a store, buying something from an email or redeeming a discount. Among those between 25 and 34 years old, 30% were more likely to be influenced by email to visit a store.
In the U.S., about 38% of shoppers have either attended an in-store event or purchased a product shown in an email, or redeemed an email discount in the previous six months. The latter was the most common; 18.7% of respondents have done that. Email is most commonly an influencing factor to those between 35 and 44 years old; 22% have redeemed an emailed discount in-store.
How have emails from brands influenced your in-store shopping experience the past 6 months?
U.S. No influence/I don’t know 30.6% I don’t like receiving emails 31.3% One-third of U.S. I have redeemed an emailed discount in-store 18.7% consumers have been driven to I have purchased an item in-store shown in email 10.5% action by email I have attended an in-store event shown in email 8.9%
U.K. No influence/I don’t know 32.6% U.K. respondents were less I don’t like receiving emails 40.1% inspired by their I have redeemed an emailed discount in-store 12.0% inbox, though a discount was I have purchased an item in-store shown in email 10.7% their biggest I have attended an in-store event shown in email 4.6% driver from email to a store Pushing people to stores
Push notifications aren’t as popular as email. Of the U.K. respondents who prefer shopping IRL, about a quarter of consumers like receiving push notifications from brands. However, that quarter has been compelled to visit a store, whether it was to pick up an online order, redeem a promotion, find a location or buy something featured in the push. Breaking it down by age, both 18- to 24- and 35- to 44-year- olds were most likely to buy something because of a push notification. Millennials, on the other hand, are more inclined to use a push notification promotion in-store.
In the U.S., about one-third of respondents have been pushed by push notifications. Redeeming a promotion was the most common use. The youngest cohort was by far the most open to push notifications; nearly 40% of consumers between 18 and 24 have gone to a store and bought something featured in a push notification. Those between 35 and 44 most value push notifications that help them find store locations.
How do push notifications from brands on mobile influence your in-store shopping experience?
U.S. Push notifications No influence/I don’t know 34.3% brought nearly I don’t like receiving push notifications 32.7% one-third of I received a promotion and used it in-store 9.5% American respondents It helped me find a store location near me 8.3% to a store, I purchased the featured item in-store 7.9% especially if I ordered an item to a store for pick-up 7.4% there was a promotion involved
U.K.
British No influence/I don’t know 26.8% respondents I don’t like receiving push notifications 48.2% generally I received a promotion and used it in-store 8..2% found mobile It helped me find a store location near me 6.3% messages I purchased the featured item in-store 2.1% more pushy
I ordered an item to a store for pick-up 8.5% than their American counterparts About Sailthru Sailthru helps modern marketers acquire, grow, and retain customers. With upwards of 3Bn global consumer profiles under management, Sailthru’s powerful suite of connected capabilities – including high- performance email, onsite personalization, mobile marketing automation, and unique integrations powering new customer acquisition – drives higher revenue, improves customer lifetime value and reduces churn.
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