New research from Monash University has found consumer purchasing habits are shifting post-pandemic, with brick and mortar retail stores surging in popularity, particularly across apparel.
The annual Retail Monitor survey of 1,000 Australian shoppers - from the Australian Consumer and Retail Studies (ACRS) unit in the Monash Business School - also uncovered consumer insights between their in store and online preferences.
ACRS principal research consultant Dr Eloise Zoppos said that despite the resurgence in brick and mortar, Australians rate the online shopping experience better, and return more items purchased in-store than online.
“Prior to the pandemic, there was a clear divide amongst shoppers over physical versus online shopping experiences, with the majority of Australian shoppers preferring to use physical stores as their main channel for non-grocery retail purchases,” Dr Zoppos said.
“During COVID-19, online became the main non-grocery retail channel out of necessity and the majority of Australian shoppers turned to online methods, a trend which was accelerated by the pandemic.
“We’re now seeing the return of a preference for physical stores, and shoppers are moving between the offline and online worlds more seamlessly than ever before.”
The survey showed that most Australians (70%) purchased clothing, footwear and accessories both in-store and online in the three months to September, more than any other category. This is on par with 2020 results.
Personal care was also a popular purchase (49%), with household items decreasing slightly to 42% in 2022, compared to 54% 2020.
The report also found that despite their preference for visiting a store, Australians rate the in-store shopping experience lower than that of online, particularly on key attributes like product availability, product ranges and sales and promotions.
For example, the overall physical shopping experience was rated 4 points lower than online, product availability rated 18 points lower, and both product ranges and sales and promotions each rated 11 points lower.
Dr Zoppos said that although Aussie shoppers are revelling in the ability to shop in-store again, their expectations are higher than ever.
“Research shows that the ability to see, touch and trial goods is the most influential factor of purchase decisions, and when it comes to tactile products such as apparel and household goods, factors such as size, fit and quality are paramount, but difficult to judge online”, she said.
Another finding uncovered in the report is the increasing importance and prevalence of retail returns.
Clothing, footwear and accessories are the most likely to be returned for both in store and online (66% and 61% respectively) compared to all other categories. Overall, consumers are more likely to return an item bought in store (66%) than online (42%).
The most common reason for returning a fashion item is that it didn’t fit (51%), followed by it not matching the description (18%), and it being damaged or defective (11%).
Over half of consumers (58%) said return options are one of the most important factors when making a purchase, only coming in behind price-related factors, and quality and customer service. And well over a third of Australian shoppers (72%) said they’ve returned an item they purchased from a physical or online store.
“With consumers using online channels more than ever before, it is now increasingly important that retailers provide shoppers with seamless returns experiences to meet their increasing expectations,” Dr Zoppos said.
“Rather than see returns as a problem, retailers should look at returns as an important stage of the customer journey; one that when done right, can result in customer loyalty, advocacy, and a cycle back to the purchasing stage of the customer retail journey,” said Dr Zoppos.
Other notable insights include:
- Price and quality were the most important factors when non-grocery shopping.
- Standard delivery was the most frequently used method, particularly for fashion items (71%)
- Clothing, footwear and accessories is the second-highest when it comes to shoppers wishing to return online purchases via mail (50%).
Data was collected between August 29 and September 5, 2022.