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Consumers Return to Physical Stores for Personal Touch

New EY survey finds consumers are less willing to pay for digital conveniences
Lynn Petrak, Progressive Grocer
happy grocery shopper
EY's annual Future Consumer Index shows that more consumers are returning to and enjoying in-person shopping.

New data affirms that consumers enjoy the in-store shopping experience, even as they engage digitally with retailers. Ernst & Young Global Limited (EY) shared findings from its annual Future Consumer Index showing that consumers appreciate physical and tactile ways of buying items for themselves, their families and their homes.

According to the recent survey of more than 23,000 people across 30 countries, 57% of consumers want to see and touch products before they purchase them. Interacting with retail staff is important to shoppers, too, as nearly a third (32%) want personal service during in-store visits and 68% look for advice for high-value purchases.

Retailers can also get people in the door with offers that apply inside their doors. Nearly two-thirds (61%) of survey participants report that they would go to a retailer for a store promotion that is not available online. 

[RELATED: The Store of the Future]

The priority of personal engagement is evident in other responses. EY’s data shows that 38% of consumers are spending less on grocery deliveries than they did during the pandemic. In addition, 47% say they plan to cook more at home this year, up from 39% who shared that intention in 2023. 

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“In response to this emerging trend, consumer companies must reevaluate their strategies for engaging with consumers, particularly the younger demographic. As consumers are less willing to pay for digital conveniences, businesses will need to recalibrate the role that digital channels play in driving revenue and profit margins and prioritize physical distribution outlets," observed Kristina Rogers, a global consumer leader at EY. 

“The key lies in recognizing that fulfilling physical and digital desires is not an either-or proposition," she continued. "Companies must create value by adeptly navigating the digital landscape to streamline consumer experiences while also cultivating a physical presence that fosters deeper connections. Achieving this balance will require new value propositions to seamlessly address both digital convenience and the craving for immediate, tangible experiences. For instance, a consumer who lacks the time to prepare a meal from scratch may still seek an engaging and inspiring culinary experience rather than simply ordering takeout.”

The EY Future Consumer Index revealed further attitudes towards technology. For example, while 68% of consumers are happy to receive offers and promotions that have been personalized by AI, 49% are frustrated by smart chatbots that are not effective in resolving their queries. An additional 33% are concerned that AI-generated recommendations are biased toward products or brands that may not be in their best interest.

Such results reinforce the notion that companies should leverage data to address consumer needs and also uncover points of friction, Rogers noted. “Striking the right balance between using technology to spot and resolve these challenges early, along with customer service training that is responsive, empathetic and creates value for the consumer, is key. AI-led product recommendations can deliver incremental sales, but they won’t resolve more complex, service-oriented customer needs. Investing in people, both in terms of experience and knowledge, is equally as important as investing in technology, and they must go hand in hand,” she remarked.

EDITOR'S NOTE: Get an "A Look Inside the Store of the Future" by registering for Progressive Grocer's July 23 webinar.

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