According to recent research from Deloitte Digital, digital interactions now influence over a third (36%) of every dollar spent in-store, representing $1.1 trillion. By the end of 2014, Deloitte estimates this number will rise to 50 percent or $1.5 trillion of total store sales – and suggests that retail has now reached a tipping point.
Deloitte’s report “The New Digital Divide” attempts to quantify the extent to which consumers’ use of PCs, tablets and smartphones influence pick-and-mortar sales – and reveals that digital’s influence on in-store purchase behaviour is growing much faster than we could ever have anticipated.
The survey found that 84 percent of store visitors use their mobile devices before or during a shopping trip, inevitably to check prices. Smartphone devices alone influence $593 billion, or 19 percent of all in-store retail sales – a significant increase from 2012 when smartphones represented just 5 percent of in-store sales.
However, Deloitte reveals that whilst the threat of showrooming has long been a concern for retailers, digital shoppers actually spend more. Consumers who use a mobile device during their shopping journey convert at a rate 40 percent higher than those shoppers who do not use a device.
Given the acceleration of how much digital devices influence in-store purchase behaviour, Deloitte believes we have reached a tipping point – where digital channels should no longer be considered a separate business. Instead, digital is fundamental to a retailer’s entire business.
“Retailers that narrowly focus on digital commerce – rather than the full journey that leads to a purchase – often fail to recognize how their customers shop and make decisions in the store. The result is a digital pide between what consumers do and what retailers deliver”, states Deloitte.
As with Forrester’s recent research into cross-channel sales in Europe, delivering a seamless omnichannel offering will be critical for retailers if they’re to compete and win in today’s ever-changing retail environment.
To help retailers better understand how they can compete and win in today’s fast-moving world of omnichannel retail and dynamic pricing, don’t miss Profitero’s essential webinar featuring renowned Forrester analyst Sucharita Mulpuru.
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