Bricks and mortar vs. online shopping: What may surprise you

Summary

This Cyber Monday, online shopping continues to grow, with 39% of shoppers making purchases via the internet, compared to just 7% in 2002. While online shopping offers convenience, malls and physical stores still have an edge, offering experiences that the internet cannot replicate, such as trying on clothes or smelling perfume. Retailers are also improving by merging online and in-store shopping options, allowing for convenient pick-up and returns. Despite the rise of online shopping, many still enjoy the tactile experience of shopping in person, especially during the holiday season.

Takeaways

• 🛍️ Online shopping has become a major trend, especially during the holiday season, due to its convenience and ease of use.
• 💻 In 2002, only 7% of metro area shoppers reported spending money online, compared to 39% in recent years.
• 📊 Internet shopping growth appears to be leveling off, with both malls and online platforms capturing around 40% of holiday spending for two years in a row.
• 🏬 Brick-and-mortar retailers are improving by combining strong in-store presentations with effective online marketing strategies.
• 🔄 Many consumers use a hybrid approach—buying items online but picking them up or returning them in stores, often leading to additional purchases.
• 🛒 Despite the convenience of e-commerce, many shoppers still enjoy the physical shopping experience for its sensory and spontaneous aspects.
• 👗 Physical stores hold an advantage for products that require personal interaction, like clothing (fit) and perfume (scent).
• 🎁 Some consumers prefer going out to shop because they find it fun and enjoy discovering unexpected items in-store.
• 🏙️ The University of St. Thomas conducts annual surveys tracking holiday shopping habits in the Twin Cities area.
• 🌐 The most popular online shopping sites for Twin City shoppers are Amazon, Target, eBay, Macy’s, and Best Buy.

Q & A

What is the primary focus of this week's business segment?

The segment focuses on the popularity of online shopping, particularly during the holiday season, and highlights surprising statistics regarding this trend.

What percentage of metro area shoppers used online shopping in 2002 compared to today?

In 2002, only 7% of metro area shoppers used online shopping for holiday purchases. Today, that figure has risen to 39%.

How has online shopping grown in popularity over the past 15 years?

Online shopping has grown significantly in popularity, with a 32% increase in usage for holiday shopping from 2002 to today.

What trend is being observed in online shopping growth over the last two years?

The growth of online shopping seems to be leveling off, as both shopping malls and the internet are receiving about 40% of the holiday shopping dollars each year.

What factors are contributing to the leveling off of online shopping growth?

Brick-and-mortar retailers are improving their in-store presentations and combining online and in-store marketing, which may be slowing the growth of online shopping.

What does instructor John Seltzer say about consumer behavior in online and in-store shopping?

John Seltzer explains that consumers often buy items online but may choose to pick them up in-store or return them to a store, sometimes resulting in additional purchases.

Why do some consumers still prefer in-store shopping despite the convenience of online shopping?

Many consumers enjoy the experience of shopping in-store because they can physically examine products, such as perfume or clothing, and find items they may not have come across online.

What advantages do shopping malls and stores have over the internet in terms of product selection?

Malls and stores offer the advantage of allowing customers to see, touch, and try products in person, such as smelling perfume or trying on clothes, which is something online shopping cannot replicate.

What are the top five most popular websites for Twin City shoppers according to the University of St. Thomas?

The top five most popular websites for Twin City shoppers are Amazon, Target, eBay, Macy's, and Best Buy.

What is the role of the University of St. Thomas in this segment?

The University of St. Thomas provides annual surveys on holiday shopping trends, offering valuable data on consumer behavior and shopping habits in the Twin Cities area.