Strategy • Operations • Technology
Driving Impact. Scaling Performance.

New Retail Battleground…

What if we asked ourselves: "What are the main factors that drive consumers to choose in-store or online for a specific shopping occasion?”

Key findings include:

Younger shoppers (18–34) often cite in-store crowds and sensory overload as reasons they prefer online shopping over physical stores.

  • They avoid stores due to anxiety, overstimulation, or complicated shopping, so a simplified environment is essential.
  • Reducing assortment, promotions, and store complexity - simplifies shopping, attracting and retaining younger shoppers.

Adults 35–54 more often cite ‘time tax’ failures (lines, missing items) and price comparisons as reasons for switching.

  • This audience sees channel selection as an optimization challenge: switching to online or different in-store channels when lines are long, items are hard to find, or prices are unclear.
  • They cite online versus in-store price comparisons as a reason to change the purchase channel.

Older shoppers (55+) favor channels that allow them to inspect products and interact with staff, so poor service is a bigger deal-breaker.

  • Older respondents value being able to see, touch, and personally select items, especially food, and are less patient with dismissive or obstructive staff interactions.
  • When service fails to meet their expectations, they prefer leaving the store rather than persisting despite dissatisfaction.

Developing differentiation: Which shopping experience improvements will influence future channel choices for in-store and online options?

  1. Shoppers expect a hybrid shopping experience in the future, but store ‘anchors’ like shopping ease, product availability, and fresh foods remain vital in maintaining the importance of stores.
  2. Many shoppers plan to continue using both channels, choosing based on their purchase needs and timing. In-store shopping remains preferred for categories needing inspection and immediate possession. With the emergence of Agentic retailing, expect greater diversity in purchase locations.
  3. The main in-store differentiation is to reduce time and stress through better staffing, checkout, and store design.
  4. Shoppers cite long lines, crowded spaces, and overstimulation as frustrations that undermine store visits. Streamlining checkout and creating calmer atmospheres can reduce abandonment and boost quick-trip appeal.
  5. Shoppers want transparency, dependability, welcoming associates, simplified assortments, clearer pricing and promotions, and relevant products for a smooth shopping experience.

Strategy to Execution Next Steps: Banners and Brands That Listen Closer – WIN BIGGER!