2017 RETAIL INDUSTRY REPORTSHOPPING ONLINE VS IN-STORE COMPARISON FOR ELECTRONICS, FASHION & HOME IMPROVEMENT2 | trendsourcePLEASE RATE WHETHER YOU BELIEVE THE FOLLOWING ARE BETTER IN STORE OR ONLINE:Availabilityof ProductsCustomerServiceReturns andExchangesVariety ofSelectionPricingELECTRONICSFASHIONHOMEIMPROVEMENT73% 62%82% 73%89%70% 55%90% 70%95%73% 51%84% 71%93%Gray-colored numbers represent highest across retail category.WHICH SHOPPING EXPERIENCE DO YOU ENJOY MORE?In all three industries, respondents still prefer the in-store shopping experience over online. While roughly ¾ prefer in-store shopping for Fashion and Home Improvement, the narrowest gap appeared in electronics where 66% prefer in-store. With the rising popularity of online shopping, what keeps drawing these shoppers to in-store experiences?Its All About the Customer Service! While online shopping beats in-store in expected categories such as availability of products and variety of selection, in-store dominates in terms of customer service. Through all three industries, overwhelming majorities of respondents felt returns and exchanges were far easier in-store. Pricing, the Final BattlegroundWhile shoppers have decided that online is the place to go for availability of products and variety of selection, and in-store for customer service and returns and exchanges, there remains one final battleground: pricing. Respondents proved almost evenly split when asked whether they believe pricing was better in-store or online, with only 51% believing fashion prices were better online and 55% believing the same of home improvement prices.Online has a reputation for being less expensive due to lower operating costs and brick-and-mortar stores often struggle to compete with online pricing. Yet physical stores offer clearance sales, seasonal promotions, price matching, and other discounts to even the playing field. All Things Being EqualWith respondents seeing the virtues of both online and instore, and remaining fairly uncertain about which offers the best pricing, clear majorities still would rather the in-person brick and mortar experience over online. ONLINEIN-STORECOLOR LEGEND FOR CHARTS & GRAPHS ON THIS PAGE74% 76%ELECTRONICS FASHION HOME IMPROVEMENTCLEAR MAJORITIES STILL WOULD RATHER THE IN-PERSON BRICK AND MORTAR EXPERIENCE OVER ONLINEn=884 n=1,582 n=1,73566%WHICH SHOPPING EXPERIENCE DO YOU ENJOY MORE?ELECTRONICSn=88474%FASHIONn=1,58276%HOME IMPROVEMENTn=1,7350 20 40 60 80 100Millennial 1(77)Millennial 2(151)Generation X(307)Baby Boomer(326)Silent(23)42%38%37%30%17%58%62%63%70%83%0 20 40 60 80 100Millennial 1(160)Millennial 2(294)Generation X(593)Baby Boomer(491)Silent(44)29%32%28%20%23%71%68%72%80%77%0 20 40 60 80 100Millennial 1(77)Millennial 2(151)Generation X(307)Baby Boomer(326)Silent(23)21%24%25%22%25%79%76%75%78%75%Millennials nonetheless preferred in-store shopping across all three industries.66%ONLINEIN-STORECOLOR LEGEND FOR CHARTS & GRAPHS ON THIS PAGE3 | trendsourceUnderlined numbers are significantly different at a 95% confidence level4 | trendsourceWe hear all the time that millennials will be the death of brick and mortar shoppingthe generation glued to its smart phone, shopping via social media, and shunning real-world interaction will retreat so far into their digital bubble that the retail industry will follow it. Yet that doesnt seem to be the case. Even when millennials preferred online in numbers greater than their older counterparts, millennials nonetheless preferred in-store shopping across all three industries.Luddites and NerdsElectronics, unsurprisingly, showed the greatest generational gap between online and in-store shopping. Indeed, the older a customer, the likelier they are to prefer in-store electronics shopping with 83% of silents still heading to brick and mortar stores for their electronics purchases while a considerably smaller percentage of younger millennials (58%) favor in-store. Similarly, though not identically, older generations preferred in-store in fashion as well. Generation did not impact home improvement preferences, however, with roughly the same percentage (75%-79%) of shoppers preferring the in-store experience. WHICH OF THE FOLLOWING DRIVES YOU INTO A PHYSICAL STORE TO MAKE A PURCHASE RATHER THAN DOING SO ONLINE?ELECTRONICSFASHIONHOMEIMPROVEMENTCOLOR LEGEND FOR GRAPHS ON THIS PAGE42% 58%Getting the items immediatelyAbility to physically confirm the items' quality/fitBargain huntingAdvice or assistance from associatesIn-store promotional eventsAbility to easily return itemsIn-store technology/toolsSocial interaction050100 150 200 25022%26% 24%35% 35%70% 62%67% 62%87% 81%85% 83% 88%57% 58%59% 57% 53%65%79%34%47%14%Drivers to physical stores varied considerably by retail type, particularly fashion, where 2x less respondents went to physical stores for in-store technology or for advice from associates.5 | trendsourceUnderlined numbers are significantly different at a 95% confidence levelEven Two Days is Slow Compared to ZeroIf the reports of retails death were greatly exaggerated, what is bringing shoppers into stores? Well, in all three industries immediacy is king. “Getting the items immediately” drives 85%, 83%, and 88% of shoppers to physical electronics, fashion, and home improvement stores, respectively. On-Site InspectionThe ability to physically inspect items to ensure quality and fit also proved quite enticing to fashion (87%) and home improvement (81%) shoppers, but did not carry over as strongly into electronics (65%), where merchandise is far more standardized than the other two industries. More than You Bargained for?With the rise in popularity of discount fashion stores such as TJ Maxx, Nordstrom Rack, and Ross, nearly 80% of fashion shoppers report being drawn into the store for bargain hunting. While similar bargains may be available online, the in-store “treasure hunt” experience is perhaps driving in-store purchases as customers potentially spend hours upon hours sifting through racks looking for their next great deal.Yet they dont want any help doing it. While 70% of electronics shoppers and 62% of home improvement shoppers go in-store to seek advice or assistance from associates, only 34% of fashion shoppers want similar guidance. Some of this might have to do with the reputation fashion salespeople have for being a bit, well, shall we say pushy? But it also might speak to the evolution of fashion shopping in generalare customers already experts in what they “want” from social media and digital channels? Do they nonetheless enjoy the hunting for what they want at the best possible price?Question about product specificsLocation on the sales floorWarranty orReturn PolicyPLEASE RATE YOUR DESIRE FOR ASSOCIATE INTERACTION WHEN CONSIDERING THE FOLLOWING:ELECTRONICSFASHIONHOMEIMPROVEMENTCOLOR LEGEND FOR CHARTS ON THIS PAGE02040608010088%86%0102030405060708074%77%0102030405060708058%61%Pricing orPromotion OfferDelivery or Ordering0102030405060708061%0102030405060708064%66%53%51%72%66%73%65%IMMEDIACY IS KING.6 | trendsourceRespondents who visited fashion stores were less likely to desire associate interaction in all scenarios except pricing or promotion offers.Retail in general and retailers specifically appeal to shoppers five senses. In a crowded marketplace, being noticed is important, and as brick and mortar establishments defend themselves from or try to fold themselves into online, striking the right notes is important.I Spy with My Little Eye, I Hear with My Little EarAs we learned in our food safety study, consumers trust what they can see. In all three industries, clear majorities reported that sight heightened their in-store experience.Yet not all the senses are so clean cut. While respondents also generally agreed across all three industries that touch also heightened their experience and that smell had little positive effect, they were not so sure about sound.While 84% of electronics shoppers see it as a positive influence on their shopping experience, only half of fashion and home improvement shoppers felt the same positivity. Electronics retailers sell goods specifically designed to produce sound, namely speakers and other electronic devices and systems. Could it be that hearing these precise sounds from display units playing popular music and movies heightens their shopping experience? Fashion, however, is almost entirely silent save tap shoes and the occasional swooshing pair of pants. Home improvement goods make noise but only as a bi-product of their function: the sounds of electric motors, forklifts, and power saws are not the purpose of their design but rather a potentially irritating result if it.Just Leave Me Alone!We know that only 34% of fashion shopper respondents are driven to physical stores seeking assistance and advice, and indeed, when asked to rate their desire for associate interaction in specific situations, they were less likely to desire this interaction in nearly every scenario. This is in stark contrast to retail in general, and electronics and home improvement more specifically, where associate interaction is more appreciated.Where Do You Plug This In?!For electronics shoppers, the opposite proved true, with more respondents wanting associate interaction than any other industry in all but one scenario. Electronics can be complicated for the uninitiated and it could be that conferring with an expert is especially important in this setting. This allows them to ensure comprehension of warranty and return policies, find the best pricing and promotional information, as well as set up deliveries, which were all areas in which respondents indicated they want some help.Improving Home Improvement KnowledgeHome Improvement shoppers, more than any other, want an associate to explain product specifics to them, which could make sense given their varied nature, complexity, and relative danger (nobody ever sawed their finger off with a floral printed blouse). 7 | trendsource0 20 40 60 80 100PLEASE RATE HOW THESE SENSES AFFECT YOUR IN-STORE EXPERIENCE:DETRACTSSOMEWHATDETRACTSNEITHER DETRACTSOR HEIGHTENSSOMEWHATHEIGHTENSHEIGHTENS0 20 40 60 80 10010%18%10%22%11%89%35%14%6%7% 22% 69%21% 7% 66%12% 32% 32% 19%15% 21% 31% 19%51%7% 65%24% 60%14% 46% 15% 8%86%SightSmellSoundTasteTouch8%SightSmellSoundTasteTouch0 20 40 60 80 1006% 12%14%17%8%23%19% 39% 39%7% 65%25% 31% 19%15% 25% 24% 21%79%SightSmellSoundTasteTouch4%n=884ELECTRONICSFASHIONn=1,582HOMEIMPROVEMENTn=1,735COLOR LEGEND FOR GRAPHS ON THIS PAGE2%3%3%3%1%1%2%1%1%2%1%1%2%2%2%2%4%2%4%2%LETS BREAK IT DOWNSIGHTMillennial 1(77)Millennial 2(151)Generation X(307)Baby Boomer(326)Silent(23)020 40 60 80 10012010%18%10%22%11%35%51%7%65%24%60%14%46%15%8%86%17%11%10%7% 89%79%84%85%Sight Smell Sound Taste Touchn=884ELECTRONICS2%3%1%1%2%1%1%4% 17% 78%3%2%3%3%SMELLMillennial 1(77)Millennial 2(151)Generation X(307)Baby Boomer(326)Silent(23)020 40 60 80 10012%48%16%19%6%18%45%13%18%13%17%42%13%15%14%17%45%12%12%35% 57%5%4% 4%3%3%1% 2%4%3%DETRACTSSOMEWHATDETRACTSNEITHER DETRACTSOR HEIGHTENSSOMEWHATHEIGHTENSHEIGHTENSCOLOR LEGEND FOR GRAPHS ON THIS PAGE8 | trendsource9 | trendsourceOpinions on how senses affect the shopping experience varied by generational group. Some, such as smell, displayed a large disparity, while others (sight, for example) had similar distributions.Something Smells Fishy in HereWithin electronics, as would be expected, shoppers across all generations felt that seeing (96%) and physically interacting (86%) with the store and its products enhanced their shopping experience. But it gets a bit trickier with smell. Smells trigger different associations and reactions among different people and the older a customer, the less inclined they are to appreciate the smells of a typical electronics retailer. While 30% of millennials (1 and 2) find that electronic store smells enhance the shopping experience, only 4% of silent shoppers and 19% of boomers felt the same way.Whether the store is triggering a physical or emotional response (or both), it does seem that, at least on an olfactory level, millennials are more at home in an electronics store.40%TOUCHMillennial 1(77)Millennial 2(151)Generation X(307)Baby Boomer(326)Silent(23)020 40 60 80 10012021% 38% 40%18% 32% 48%8% 35% 55%10%13% 39% 43%35% 53%1%2%2%4%3%1%1%DETRACTSSOMEWHATDETRACTSNEITHER DETRACTSOR HEIGHTENSSOMEWHATHEIGHTENSHEIGHTENSCOLOR LEGEND FOR GRAPHS ON THIS PAGEFASHIONn=1,582LETS BREAK IT DOWNSOUNDMillennial 1(77)Millennial 2(151)Generation X(307)Baby Boomer(326)Silent(23)020 40 60 80 1001208%14%12%21%7%22%69%7%66%32%32%19%15%21%31%19%89%11% 26% 26% 31%13% 23% 35% 24%Sight Smell Sound Taste Touch1%1%2%6%SMELLMillennial 1(77)Millennial 2(151)Generation X(307)Baby Boomer(326)Silent(23)020 40 60 80 10027%24%16%18%18%32%23%15%11%23%36%16%13%12%25%35%13%16%11%25% 23%15%34% 18%6%1% 2%4%2%DETRACTSSOMEWHATDETRACTSNEITHER DETRACTSOR HEIGHTENSSOMEWHATHEIGHTENSHEIGHTENSCOLOR LEGEND FOR GRAPHS ON THIS PAGE6%12% 30% 35% 18%6%11% 39% 29% 16%5%11% 52% 23% 5%9%10 | trendsource11 | trendsource40%TOUCHMillennial 1(77)Millennial 2(151)Generation X(307)Baby Boomer(326)Silent(23)020 40 60 80 10011% 33% 54%7% 26% 65%7% 21% 68%17%5%5% 18% 73%35% 76%1%2%5%2%1%1%1%DETRACTSSOMEWHATDETRACTSNEITHER DETRACTSOR HEIGHTENSSOMEWHATHEIGHTENSHEIGHTENSCOLOR LEGEND FOR GRAPHS ON THIS PAGEOpinions on how senses affect the shopping experience varied by generational group with some, such as smell and sound, showing considerable differences between groups.Turn that Music Down!The same held true for fashion where, as expected, each generation valued the sight and touch, but generational disparities emerged when it came to sound. While 57% of millennials say that the sounds of fashion retail heighten their shopping experience, this was true for only 28% of silent. Clothing stores often play music to create a particular atmospherebe it tony piano music in an upscale store or contemporary hip hop and house music at trendier locationsand the younger a shopper, the likelier they are to appreciate these sounds.Of course, it could be that this is no accidentthat these young shoppers are the ones retailers are targeting when creating their in-store experience. But it is worth noting that the silent generation valued touch in fashion retail more than any other generation, so its not just that our elders disapprove of everything. HOMEIMPROVEMENTn=1,735LETS BREAK IT DOWNSIGHTMillennial 1(77)Millennial 2(151)Generation X(307)Baby Boomer(326)Silent(23)020 40 60 80 10012012%14%17%23%19%39%39%7%65%25%31%19%15%25%24%21%79%9% 23% 66%7% 17% 73%Sight Smell Sound Taste Touch1%2%SMELLMillennial 1(77)Millennial 2(151)Generation X(307)Baby Boomer(326)Silent(23)020 40 60 80 10012023%31%15%16%22%24%24%16%15%27%28%19%16%8%31%20%21%15%14%29% 12% 20%15%25% 14%8%1% 2%4%