Confidence in in-store purchases is regaining – News

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What is happening now is that as cases of Covid-19 continue to decline, residents are regaining confidence in in-store purchases. This is revealed by a study by Kearney in which respondents from the United Arab Emirates cite convenience (51%), improved shopping experience (49%) and competitive pricing (44%) as main motivations that push them to return to physical stores.



Kearney’s study finds that in the last quarter, 34 percent of residents increased their spending on non-essentials by more than 25 percent. – Photo file

Posted: Sun Nov 28, 2021, 5:13 PM

Consumers in the UAE cite an improved shopping experience and competitive pricing as the main motivations for them to return to physical stores as the retail sector rebounds.

Since the start of Covid-19 in 2020, consumption habits around the world have undergone a fundamental transformation. In the United Arab Emirates, there has been a rapid acceleration in the adoption of online shopping and spending over the past 18 months.

“While e-commerce has not slowed down, as retailers invest in creating a safe and competitive environment for their goods and services, we are seeing consumers return to their trusted stores for an experience of improved shopping, ”said Debashish Mukherjee, Partner, Consumer and Retail at Kearney Middle East.

What is happening now is that as cases of Covid-19 continue to decline, residents are regaining confidence in in-store purchases. This is revealed by a study by Kearney in which respondents from the United Arab Emirates cite convenience (51%), improved shopping experience (49%) and competitive pricing (44%) as main motivations that push them to return to physical stores.

Large retailers believe brick-and-mortar retail has returned with a post-pandemic boom, with most consumers expressing a desire to return to in-store shopping.

According to a recent study by AlixPartners, a survey found that while nearly one in two consumers worldwide expects to permanently change their consumption habits due to the effects of the pandemic, in the United Arab Emirates, one consumer on three permanently changed their purchasing habits, with 53% intending to resume their pre-pandemic purchasing habits, supported by strong optimism about the vaccination program.

Kearney’s study finds that in the last quarter, 34 percent of residents increased their spending on non-essentials by more than 25 percent. This is compared to just 23 percent of respondents who reported an increase in spending in June. The increase reflects forecasts issued by the Dubai Chamber of Commerce and Industry earlier this year, which estimates in-store retailing to grow at a CAGR of 5.7%.

“This year, we’ve seen online retailers start offering discounts as early as the second week of November with the Singles Day sale, rather than the traditional Black Friday kickoff. With online, in-store and omnichannel retailers competing for customer acquisition, building stronger brand connections will become essential. We expect retailers to start offering more in-store experiences; whether it’s self-service or automated checkouts, click and collect or in-store store concepts, today’s consumers are looking for new and more engaging ways to shop, ”said Mukherjee.

The most popular categories for in-store purchases were those that required a physical inspection, including footwear (53%), home or casual clothing (37%), and work clothing (35%). When looking at the motivators for shopping online, time saved (49%) was the main factor. Next are ease of purchase (37%), security / Covid restrictions (37%) and ease of delivery (37%).

This research was conducted as part of a series of independent surveys by Kearney, the global leader in management consulting that explores trends in key sectors that contribute and support the region’s economic development.

A similar Visa survey also found that consumer confidence in the UAE has rebounded amid growing optimism for a faster economic recovery, with most residents becoming increasingly comfortable spending. for non-essential items, luxury items, meals and travel. The Visa survey found that consumer attitudes and preferences have also undergone significant changes in the past 18 months since the Covid-19 outbreak.

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