To mark the start of the summer sales, Locala, leader in geolocalized advertising, reveals the results of its annual study “ Retail Insights by Locala », examining the evolution of retail trade through a system combining a trend book, a b2b survey of 4,000 Europeans and in-depth interviews with decision-makers in the sector. Locala was supported by Marketing Insight, a consulting and insights company. “ Retail Insights by Locala » reveals the key trends reshaping the French and European commercial landscape for the months to come by offering a detailed overview of purchasing behaviors and consumption trends in seven distinct European countries.
At a time when inflation is eroding purchasing power and the digitalization of purchasing paths is accelerating, it is crucial to analyze the relevance of physical stores in the commerce of 2024. Despite publicized closures and shopping center challenges, data shows that physical points of sale remain essential for many consumers.
According to Sandrine Préfaut, Managing Director Europe of Locala : « After a phase of rebellion to protect the purchasing power of a consumer who is more than ever in difficulty in a context of price war, physical points of sale must reinvent themselves: digitalization, omnichannel, unified commerce, hyper personalization, sustainable business models… have become essential. This New Retail now imposes its standards. »
Faced with inflation, the search for good deals is essential
73% of global consumers have changed their spending habits due to the increasing cost of living.
The study highlights that in France, 52% of consumers are extremely concerned about their personal finances, a concern particularly marked among Millennials (58%), Generation Z (56%) and Generation X (54%). In this context, more than 90% of Europeans pay increased attention to prices and promotionsthe search for good deals having become central.
In France, this trend is confirmed with 63% of consumers looking for private sales or well-known brands at reduced prices. Promotions, particularly on food products and clothing/accessories, are popular with a majority of consumers.
If this development is also reflected in the increased use of digital platforms, where promotions are omnipresent and easily accessible, the study reveals that in France, 44% of consumers turn to the physical channel to find the best pricean increase of 10% in six years.
Digital is transforming consumer habits
Digital occupies a prominent place in the consumer purchasing journey, profoundly redefining their behavior. The study reveals that e-commerce continues to grow, dominated by marketplaces of which 9 of the 20 largest sites in France are pure players. The e-commerce penetration rate is expected to reach 34.1% by 2028.
More than 80% of customers use their smartphone to make in-store purchaseset 78% regularly use retailers’ mobile apps to optimize their shopping experience and access personalized offers.
Social shopping, or shopping directly on social networks, is emerging as a powerful sales engine, particularly among young people. In France, social commerce will represent 10% of e-commerce turnover in 2024growing 40% from 2023. Brands are investing heavily in influencer marketing, with spending reaching $32.5 billion in 2023.
The continuing importance of physical stores in the face of these challenges
Despite current economic challenges, physical stores continue to captivate consumers, whether for pleasure purchases or daily errands. • 91% of French people prefer physical stores for their daily shoppingemphasizing their importance for everyday purchases.
• 78% of French people prefer to make their pleasure purchases in storehighlighting the enduring appeal of tangible and interactive experiences offered by physical stores.
In 2023, physical stores generated an impressive $6.22 trillion in revenue in the United States. In addition, the growth of local businesses is boosting the local economy, with 40% of Europeans shopping in local stores and more than a third planning to increase their consumption of local products.
Physical points of sale today play a strategic role for operational efficiency and customer satisfaction. They have become essential assets for brands, meeting the expectations of modern customers by providing enriching and personalized experiences.
The necessary reinvention of physical stores in the face of new consumer expectations
However, to remain relevant to new consumer trends, physical stores must reinvent themselves. 55% of consumers prefer to shop in stores that provide positive experiences.
The integration of technology into physical stores is also crucial to meet new consumer expectations: interactive kiosks, augmented and virtual reality, as well as other digital tools are essential to digitize the in-store experience.
Pour 73% of consumers say a consistent omnichannel experience is essential. Brands must therefore offer a fluid and integrated experience across all their sales and communication channels to retain their customers. Unified commerce, combining strategy and technology, remains a key trend.
Photo by Justin Lim on Unsplash
