Shoppers Still Value In-Store Experiences

MADISON, NJ—What brings shoppers into brick-and-mortar stores and persuades them to step away from their laptops and, at least for a moment, put away the smartphones? Experiential retail, according to the results of a consumer survey by Coldwell Banker Commercial Affiliates.

Moreover, while they may express preferences for particular types of retail experiences, both younger and older shoppers are open to persuasion. Seventy-four percent of survey respondents ages 18 or older reported that any retail experience beyond the normal shopping activity is more likely to bring them to a physical store. Specific examples of retail experience include free samples, product demonstrations and holiday-themed events—the latter, perhaps surprisingly, finding greater favor among younger Millennials than Baby Boomers.

“We're seeing that Americans still value in-store retail experiences in an increasingly e-commerce world, but brick-and-mortar retailers will need to embrace aspects of online shopping and invest in experiential retail to drive traffic in-store,” says Fred Schmidt, president and COO of Coldwell Banker Commercial Affiliates. “Commercial real estate professionals are taking notice of these two trends and should think about how they will impact the demand for physical space as retailers continue striving for the perfect customer experience.”

Thirty-five percent of survey respondents overall said they're more likely to buy online if they have the option to return the items in-store. Meanwhile, 21% said they'd be more likely to shop online if they had the option to pick up their items in-store. That percentage rises slightly for older Millennials, while 40% of younger Millennials favored the option of making returns in-store.

To create the kind of seamless shopping experience particularly favored by Millennials, retailers can combine e-commerce and in-store retail to make the physical store a focal point. Yet Coldwell Banker Commercial Affiliates notes that retailers must then meet the challenge of finding space to accommodate the logistics of in-store pick-ups and returns.

“Retailers are beginning to invest in off-site warehouses to handle merchandise for in-store transactions involving pick-ups and returns,” says Schmidt. “Stockrooms and fulfillment centers will need to be expanded, but despite these challenges, e-commerce can be a huge traffic driver and offer a unique advantage to brick-and-mortar retailers by getting customers through the door.” The survey was conducted among 2.069 adults by Harris Poll between Sept. 14-16, on behalf of Coldwell Banker Commercial Affiliates.

MADISON, NJ—What brings shoppers into brick-and-mortar stores and persuades them to step away from their laptops and, at least for a moment, put away the smartphones? Experiential retail, according to the results of a consumer survey by Coldwell Banker Commercial Affiliates.

Moreover, while they may express preferences for particular types of retail experiences, both younger and older shoppers are open to persuasion. Seventy-four percent of survey respondents ages 18 or older reported that any retail experience beyond the normal shopping activity is more likely to bring them to a physical store. Specific examples of retail experience include free samples, product demonstrations and holiday-themed events—the latter, perhaps surprisingly, finding greater favor among younger Millennials than Baby Boomers.

“We're seeing that Americans still value in-store retail experiences in an increasingly e-commerce world, but brick-and-mortar retailers will need to embrace aspects of online shopping and invest in experiential retail to drive traffic in-store,” says Fred Schmidt, president and COO of Coldwell Banker Commercial Affiliates. “Commercial real estate professionals are taking notice of these two trends and should think about how they will impact the demand for physical space as retailers continue striving for the perfect customer experience.”

Thirty-five percent of survey respondents overall said they're more likely to buy online if they have the option to return the items in-store. Meanwhile, 21% said they'd be more likely to shop online if they had the option to pick up their items in-store. That percentage rises slightly for older Millennials, while 40% of younger Millennials favored the option of making returns in-store.

To create the kind of seamless shopping experience particularly favored by Millennials, retailers can combine e-commerce and in-store retail to make the physical store a focal point. Yet Coldwell Banker Commercial Affiliates notes that retailers must then meet the challenge of finding space to accommodate the logistics of in-store pick-ups and returns.

“Retailers are beginning to invest in off-site warehouses to handle merchandise for in-store transactions involving pick-ups and returns,” says Schmidt. “Stockrooms and fulfillment centers will need to be expanded, but despite these challenges, e-commerce can be a huge traffic driver and offer a unique advantage to brick-and-mortar retailers by getting customers through the door.” The survey was conducted among 2.069 adults by Harris Poll between Sept. 14-16, on behalf of Coldwell Banker Commercial Affiliates.