'Shopping is like therapy': Why people are stepping back inside the stores

Saturday, 24 March 2018

People are heading back to the shops for their purchases instead of using their fingers and shopping online.

According to PwC's Global Consumer Insights Survey, 2018, the past three years have globally seen increases in weekly bricks-and-mortar shoppers, from 40 per cent in 2015 to 44 per cent in 2018.

The rise in physical store shopping could be attributed to a desire for a more sensory and social experience.

It's been just over a week since retailer Zara burst on to the online sales scene in New Zealand and Australia, to the delight of online shoppers outside Auckland. But in Auckland, many still choose to go to the flagship store in the Sylvia Park mall.

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The rise in physical store shopping could be because customers want a more sensory and social experience.

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* Zara opens its first NZ store at Auckland's Sylvia Park

* Opinion: Experts say New Zealand H&M and Zara stores are 'a good thing'**

Kiwi couple Marie Mulles and Jared McMahon like to shop at Sylvia Park.

Younger generations are influenced by what they see on social media - like fashion bloggers at fashion weeks. Greek fashion blogger Evangelie Smyrniotaki from Styleheroine is with Duth fashion blogger Linda Tol who is wearing a Zara skirt, at London Fashion week in September 2017.

Burnt by bad online shopping experiences, Mulles prefers shopping in store after work.

'I've had bad experiences with online shopping, things not turning up like what they looked like online,' Mulles said.

'I like to stroll down here after work. Shopping is like therapy.'

Her partner McMahon is the opposite - preferring the cheaper deals found online, unless it's for last minute purchases, then in store to ensure he gets the items on time.

Clothing is displayed before the opening of New Zealand's first Zara store at Auckland's Sylvia Park - PWC is saying consumers are coming back to bricks and mortar instead of online.

Author, shoe fanatic and Zara fan Clare Grove said while she appreciated the experience of shopping in a physical store, shopping online saved hassle.

'I think the thing is time,' she said.

'I've got three kids, and going over to Sylvia Park can be very time consuming. But it's very easy to shop online; you get quick service, updates about the process … it's lovely to be in the shop and get to look around, but it all depends how much time you have.'

Online retail giant Amazon is hoping to keep online shoppers at bay with its introduction into the Australasian market, with some pundits predicting Amazon will eat up to 16 per cent of the discretionary retail market.

Marie Mulles likes to shop in-store for so she can see and touch the garments, also for 'therapy', while partner Jared McMahon prefers online unless it's last minute shopping.

Amazon owner Jeff Bezos wrote to shareholders when it became a public company in 1997: 'Today, online commerce saves customers money and precious time. Tomorrow, through personalisation, online commerce will accelerate the very process of discovery.'

Bezos has become the master of the supply chain by incorporating the best of online and bricks and mortar stores - delivering speed, variety, and a personal approach.

The way Amazon was rolling out warehouses in other parts of the world, it was increasingly likely the retail giant could open in New Zealand, First Retail Group managing director Chris Wilkinson said.

'I think there is potential for that in the future, so I don't think we should be dismissing that now, whereas we probably would have thought that 12 months ago.'

In some ways, Amazon had forced a change in the retail sector, Wilkinson said.

Amazon owner Jeff Bezos 'Today, online commerce saves customers money and precious time. Tomorrow, through personalisation, online commerce will accelerate the very process of discovery.'

'It probably has frightened some of the weaker performing businesses into either exiting or amalgamating or actually some investment in supply chain and infrastructure.'

Retailers needed to focus on providing more product information online, including user experiences and video, Wilkinson said.

Details of delivery times, and availability of a products (either in-store or online), were also essential, Wilkinson said.

Zara has been open for online business in New Zealand since 14 March.

'New Zealanders have a number 8 wire mentality, so we are seeing retailers doing extremely well with this kind of stuff.'

Shoppers were increasingly mixing their interactions with retailers, Wilkinson said.

'Once upon a time it was just buying in-store, now we are seeing people buying in-store and online.

'So you might buy online one month, and then go back and buy in store the next month.'

Shoppers were also buying goods online, while physically standing in-store, Wilkinson said.

'So it's a real mash-up.'

The younger generation were interested in social commerce, such as buying and selling items on Instagram, but were less likely to walk into a physical store now, Wilkinson said.

'If we look at the spending demographics, they are increasingly getting older in the retail area, so retail has got a relevance to the older population, but not so much the younger population.

'They are going into stores for inspiration or as a social trip, but that purposeful store visit for them is getting less and less, and that's becoming a real concern.'