Two-Thirds of Consumers Now Use Some Digital Shopping Features

In an era where online and in-store shopping are becoming intertwined, Click-and-Mortar™ shopping is emerging. This hybrid shopping style reflects a growing consumer preference for integration between digital and physical retail experiences.

A PYMNTS Intelligence report, “2024 Global Digital Shopping Index: The Rise of the Click-and-Mortar™ Shopper and What It Means for Merchants,” in collaboration with Visa, shows the number of shoppers engaging in Click-and-Mortar behavior has surged by 38% across Brazil, the United Kingdom, and the United States since 2020. As this trend reshapes the retail landscape, the report delves into its implications for consumers and merchants.

Shift in Consumer Behavior

The evolution of shopping preferences reveals insights into modern consumer habits. Click-and-Mortar shoppers comprise nearly 40% of the global consumer base, veering away from traditional shopping methods. This group includes 48% of Brazilian shoppers, compared to 31% in the U.S. and 27% in the U.K.

The increase is driven by younger generations, with Generation Z and millennials leading the charge. For these demographics, the convenience of checking inventory online or finding products quickly in-store has become a standard expectation. In fact, two-thirds of shoppers across surveyed countries now use digital features, indicating that technology has become integral to the shopping experience.

While digital shopping saw a spike during the pandemic, reliance on online-only channels has diminished, dropping 24% since 2020. In 2024, only 29% of consumers reported using online channels exclusively. This trend underscores a desire for a balanced approach to shopping that merges the immediacy of in-store purchases with the conveniences offered by digital platforms.

Importance of Physical Stores

Despite the surge in digital shopping, physical stores continue to play a vital role in the retail ecosystem. About 71% of consumers consider physical stores central to their shopping experience.

Today’s shoppers, however, are not simply looking for traditional retail. They want a blend of in-store and digital conveniences. Consider one-third of shoppers now visit stores with some form of digital assistance, and the demand for features like online inventory checks and mobile payment options is rising.

Merchants that successfully integrate digital features into their physical spaces are likely to see increased customer satisfaction and loyalty. For example, countries like the United Arab Emirates display the potential for hybrid shopping experiences, where Click-and-Mortar shoppers report satisfaction levels comparable to those who shop online. This highlights the opportunity for retailers to innovate and enhance the in-store experience through digital tools.

Adapting to Retail Realities

To thrive in this new landscape, retailers should consider the Click-and-Mortar approach. According to the report, 75% of consumers across studied markets want to use their preferred payment methods, indicating flexibility in payment options is crucial.

Additionally, the average merchant offers between 21-28 digital features, while consumers typically engage with 11-18 of these. This gap suggests there is room for improvement in how retailers present digital conveniences.

As younger generations gain spending power, the Click-and-Mortar shopping trend is set to grow, compelling retailers to adapt their strategies with solutions that blend immediate gratification and digital support.

With the blurred lines between online and in-store shopping, retailers must embrace flexibility and integrate digital features into physical stores to enhance customer experiences and stay competitive in a changing consumer climate.