Weybridge, UK, 1^st October 2024: New research from Sony Professional Displays and Solutions dives into the priorities and preferences of both retailers and consumers across Europe, the data shows the beginning of a shift in omnichannel balance between in-store and online shopping. ​ In tandem with Censuswide, Sony’s State of Retail Technology Report 2024 surveyed just over 1000 respondents across retail technology decision makers and consumer shoppers in Europe to get a clearer view of shopping preferences, priorities and how macroeconomic factors have had an impact. 

The epic rise of ecommerce has long presented a continually evolving challenge for high street retailers and shopping malls. Its convenience, competitive pricing and data-led personalised customer journeys have had a big impact on consumer behaviour. This has historically led to a decline in footfall and in-store share-of-wallet, and ultimately has seen some stores closing their doors around the world. However, we may be seeing the start of a shift in this story as of those European retailers surveyed, 50% hadn’t experienced any closures in the last twelve months and, in fact, 3% had even seen new store openings. 

Today’s consumers expect seamless brand experiences 

Just over half (57%) of consumers across Europe stated that the rising cost of living was stopping them from shopping in-store. And when 57% also agreed that the biggest draw for using online shopping is the attractive pricing with lower premiums, the story is becoming clearer. Part and parcel of online retails aggressively cheap go-to-market is the ability to follow a customer's wants, desires and activities through automated online customer journeys that can almost guarantee a sale by putting the right product and the right price under a customer's nose at the right time; so how can in-store retailers compete? ​ 

Well, two fifths of consumer respondents (40%) state that not being able to try on clothes before they buy negatively impacts their experience of online shopping, as well as 45% saying that not being able to assess the quality of an item before buying is another negative point to the ecommerce experience. These are clear opportunities for in-store to work in harmony with online, especially when over a fifth of respondents admit to preferring to “browse” on the hight street, but there are some reasons consumers might overlook these and opt for online: 

Why retail businesses need to shift their priorities 

There is a clear demand from today’s consumers for their in-store shopping experience to better reflect the seamless experience delivered when online shopping. In fact, 66% of total respondents from the retailers' survey acknowledged this, stating that they didn’t think they had the necessary technology in place to achieve a great customer journey in-store. ​ 

Despite clear opportunities for retailers to increase footfall and sales in-store, E-commerce remains a priority for investment (33%) over in-store technology (32%). But, with non-technology related in-store enhancements the highest selected priority (50%) among retailers, it suggests a huge disconnect between store owners' priorities and shoppers' needs. 

One reason for this could be the lack of prioritisation over sustainability; a topic at the top of everyone minds and particularly among the younger generation, dubbed the ‘climate change generation’. Just 1% of retail stores surveyed stated that they would invest in technologies to aid sustainability initiatives within the next twelve months and, when asked more specifically about longer-term plans, 83% stated that they had no plans to invest in technology to aid sustainability initiatives. 

Brick-and-mortar stores are competing with ever-evolving technological advancements of online stores, so they need to be looking into how they don’t fall behind and capitalise on the new, positive sentiment shift from consumers toward in-store shopping. With 15% admitting that a concern for brick-and-mortar stores is the lack of accurate customer journey mapping and 19% stating that just finding the right in-store tech to improve customer service was difficult, it suggests that some retailers are starting to align with consumer demand, but are they reacting quick enough? 

“Replicating the seamless tech-powered customer journey of ecommerce in store and making ethical decisions as a brand that align with today’s consumers will be key in a world where fast-fashion and sustainability is being increasingly scrutinised by Gen Z shoppers,” says Thorsten Prsybyl, European Retail Sales Manager at Sony Professional Displays and Solutions. “The results indicate that retailers aren’t adapting to the changing demands of consumers fast enough. The danger is that, if they don’t keep up, they risk losing the loyalty of their customers. But alongside this danger, there is equally a great opportunity to be had here. Brands that separate themselves from the pack and invest in improving their store experiences will gain a clear competitive advantage by future-proofing their brand.” ​ 

Opportunities lay ahead 

Over one-fifth (22%) of consumers said that they would visit the high street just to browse or shop more generally. This presents retailers with an opportunity to capitalise; with the right smart in-store technology, stores can make sure that those browsing catch its latest products, store promotions and sales. ​ 

Beyond this, the allure of quick and easy online shopping seems to be waning amongst the consumer base as consumers reported their growing frustrations with online shopping, with 40% stating that not being able to see or try on clothes before purchasing negatively impacts their online buying experience as well as cost and inconvenience of returns (both 25%). ​ 

This makes clear the gaps in the online shopping experience where in-store retailers have the advantage. However, stores cannot rest on this alone. In recent years, online retailers have caught on and now offer ‘try before you buy’ services, emphasising the importance of in-store retailers needing to constantly evolve with changing consumer demand. 

Experiences and quality interactions are still important to consumers and almost one-third agree, with 31% stating that they’d be more likely to visit in-store over online if they had high-quality customer service. For retailers, brand loyalty and delivering seamless omnichannel experiences should be prioritised to see positive change. 

A matter of cost 

Retailers acknowledge the significance of customer service and power of technology to improve it, but cost is a challenge for some. One-fifth (20%) of retailers stated that costs associated with implementing in-store tech to improve customer service was a major concern. Other major concerns included the cost of delivering an omnichannel experience (15%) and the overall impact of soaring rent and leasehold prices (29%). So, on both sides of the coin there’s a tussle between better investment in long-term quality whether it be the products people are buying or the in-store tech retailers invest in, striking the right balance between the two is paramount for retailers looking to get ahead of competition. 

“When faced with budget restrictions, it can be easy to negate spending more than you need to get by on a day-to-day basis. However, it’s become clear from this survey that brick-and-mortar stores need to shift their priorities to align better with that of the consumer.” says Thorsten Prsybyl, European Retail Sales Manager at Sony Professional Displays, “Retailers who make changes now will reap the benefits in the long-term. By implementing in-store technology that can revitalise the in-store experience, better track the overall customer journey and aid the integration of more sustainable practices, stores could better connect and harmonise their offerings alongside online retail.” 

“Digital signage is set to play a pivotal role in the retail consumer experience. As retail environments are evolving, digital signage provides consumers with dynamic, personalised content that will not only create a more engaging and immersive experience but has the ability to align the in-store experience with online channels and campaigns,” adds Nikki Blissett, Head of Marketing at Xibo Signage. “Building digital signage into the omnichannel strategy, enables retailers to increase footfall and share of wallet through unique brand retail experiences. Digital signage and DooH advertising provide a seamless integration with physical and digital customer touch points. With the ability to synchronise promotional content, product offers and deliver targeted content through the use of AI sensors, digital signage will provide retailers with the opportunity to build a stronger brand presence and enable consumers to make more informed purchasing decisions.” ​ ​ 

To download the full report, click here. 

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About Sony Corporation ​ ​ ​ 

Sony Corporation is a wholly owned subsidiary of Sony Group Corporation and is responsible for the Entertainment, Technology & Services (ET&S) business. With the mission to “create the future of entertainment through the power of technology together with creators,” we aim to continue to deliver Kando* to people around the world. ​ 

For more information, visit: http://www.sony.net/ ​ ​ 

*Kando is a Japanese word that roughly translates to the sense of awe and emotion you feel when experiencing something beautiful and amazing for the first time. ​ 

About Sony Professional Displays and Solutions ​ 

Sony Professional Displays & Solutions is part of Sony Corporation and exists to help customers to truly live their vision, by unleashing the incredible power of images. With a winning combination of innovative technology and long-standing expertise, Sony partners with retailers, corporate businesses of all sizes and education institutions to deliver transformational customer solutions. Operating with over 40 years’ experience and a trusted network of established technology partners, the wide Sony portfolio of knowledge, products and services propositions provides true value to businesses and informs, educates and inspires their customers. ​