Stores still appeal in an online world

Making shopping centres attractive will bring in more customers. Photo / Chris Gorman

Online retail is a growing trend but a new survey shows younger consumers still want the experience of shopping in a store.

The study, compiled by commercial services and investment company CBRE, surveyed 11,000 shoppers in the Asia-Pacific region by age and income level, and found that 24 per cent of 18 to 24-year-olds expected to spend more time shopping in stores than online in the next two years. This was in comparison with 55 to 64-year-olds with just 3 per cent expecting to spend more time shopping in store than online.

Household income also factored into spending habits with 14 per cent of lower-income households indicating they were more likely to shop in store than online, compared with just 2 per cent of middle-income households.

CBRE New Zealand national director for retail services Grant Unsworth said the results were encouraging for bricks-and-mortar retailers.

"What our survey illustrates is the ongoing relevance of bricks and mortar, particularly among lower income brackets and those aged 18-34," Unsworth said.

"As expected, the survey showed large proportions of respondents indicating they intend to spend more online in the next two years. This was even true for the 55-64 age bracket, with a net 19 per cent expecting to spend more online," he said.

"However, what is surprising is the positive sentiment shown towards bricks and mortar shopping among the younger age groups. While a large proportion of younger people expect to spend more online, in net terms nearly a quarter of respondents in the 18-24 age bracket expected to spend more than they currently do in physical shops."

He said this highlighted the importance of making stores and shopping centres an attractive place to go, with better service and other features likely to attract consumers.

The survey found the three most important factors for consumers going to shops were security, price and parking.

Zoltan Moricz, head of research for CBRE NZ, said the results were important for retailers looking to bring consumers into stores.

"The implications for retailers and shopping centre owners are wide-ranging," Moricz said. "For instance, given the importance of parking revealed in the survey, centre owners need to carefully explore their options in balancing highest and best land uses with an enhanced and stress-free customer experience."

He said overall it would be retailers that adopted a dual "bricks and clicks" strategy that would do the best, as well as using social media and technology to enhance the shopping experience for customers.

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