The economy may be struggling, but consumers still want the convenience of eCommerce and tech-powered shopping.
From sneakers to cars to groceries, shoppers showed us once again this week that they now expect — and appreciate — digital convenience and flexibility, recession be damned.
In fact, PYMNTS’ recent study “How The World Does Digital: Different Paths To Digital Transformation,” the Q3 2022 PYMNTS ConnectedEconomy™ Index, which draws from surveys of more than 30,000 individuals across 11 countries, finds that digital transformation overall increased 7% in the United States in Q3.
Nike’s D2C Boost
Take, for instance, footwear brand Nike, which reported its fiscal second-quarter financial results on Tuesday (Dec. 20), touting 34% digital growth driven by its 160 million active members. These members not only engage more with the brand than non-members but also make up more than half of store demand.
“Our digital growth I think is a function of having the best apps in the industry,” Nike CEO John Donahoe told analysts on a call accompanying the earnings announcement. “We’re on the home screen of people’s mobile [devices], which is scarce and valuable real estate, and we have a really clean experience across our apps and digitally, including Nike.com.”
As reported on the earnings call, Nike Direct, the brand’s straight-to-shopper businesses, grew 30% on a currency-neutral basis. This direct relationship is key to the brand’s strategy for future growth, though Nike certainly does not want to ruffle the feathers of its retailer customers.
“With a consumer base that comes directly to our apps, to our website, and to our owned and partner stores, we, alongside our partners, are in a position to control our own destiny,” Donahoe said.
For CarMax, Digital Is the Bright Spot of a Disappointing Quarter
While CarMax may be getting slammed, reporting an 86% drop in profits and 22% slump in used car sales in its Q3 earnings results Thursday (Dec. 22), its expanding digital operations have been one point of optimism. The company’s end-to-end digital offering, which provides connected tools for car buying, selling, financing and fixing, has seen increasing adoption and customer satisfaction.
“Our research shows that customers love this experience when utilized and it will enable us to lower our costs over time,” CarMax President and CEO Bill Nash said on a call with analysts, noting that online digital financing tools will be rolled out to more physical locations, along with enhancements like self-check-in for appraisal customers and other self-progression tools.
Grocery Self-Checkout
At the same time, we saw further evidence that consumers are increasingly coming to expect digital convenience not only on their mobile devices or at their computers but also in physical stores. Consequently, tech-powered self-service checkout experiences are becoming more common both in well-known forms such as self-scanning kiosks and through more seamless digital upgrades such as cashierless checkout.
For instance, grocery chain Weis Markets, which operates about 200 stores across seven East Coast states, announced Monday (Dec. 19) that it was implementing Toshiba Global Commerce Solutions’ Elera platform chainwide in a move to improve self-checkout capabilities, along with other point-of-sale (POS) upgrades.
Meanwhile, Amazon’s Just Walk Out cashier-less checkout technology continues to expand, not only growing its reach to include non-Amazon-owned grocers but also finding a foothold in live event venues. Recently, Kansas City’s T-Mobile Center, home to a range of live music shows, sporting events and more, announced the opening of a small-format shop using Just Walk Out checkout entitled 816 Market.
After all, with the rise of eCommerce, consumers are no longer content with the friction of waiting around in a long line. Whether it’s sneakers, cars, groceries or pretty anthing else we buy from sotres, for today’s shoppers, it’s becoming a matter of digitally-integrated commerce or bust.