Digital transformation in retail is real, but traditional shopping methods aren’t going away just yet.
According to new research from global branded payments provider Blackhawk Network, 63% of consumers surveyed are purchasing in-store as often as in 2018. Twenty-eight percent of consumers surveyed said they are using retail stores more frequently, compared to only 9% who report using retail stores less often.
Seventy-six percent of consumers surveyed reported convenience as a leading motivation for shopping in-store, while another 56% cited speed of purchase as a top motivator. Ninety-two percent of shoppers surveyed report being somewhat or very satisfied with the in-store shopping experience, more than other purchasing options.
Physical retail stores also see a significant amount of repeat use, driven largely by the buying power of older generations. Eighty-two percent of baby boomers surveyed said they purchase from retail stores at least monthly.
However, especially among younger generations, digital and mobile shopping continue to grow. Nearly half (46%) of consumers surveyed currently use digital and mobile methods to shop at least monthly. Forty-nine percent of consumers surveyed purchase on a laptop or desktop computer at least monthly, and 41% purchase on their mobile phone.
Eighty-one percent of Gen Zers and 83% of millennials surveyed have used a mobile purchasing option, compared to just 69% of Gen Xers and 43% of baby boomers. Although credit cards are the most popular overall payment method, used by 52% of respondents, 43% are still using cash and 42% pay by debit card.
Furthermore, there is growing interest in points-based payments, especially among younger generations surveyed. Twenty-nine of respondents percent report paying with points more often than they did last year, while 70% said they are somewhat or very interested in paying with points.