BRICK AND MORTAR STORES: NICE OR NEED TO HAVE? - Research, Uncomplicated - 20|20 Research
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BRICK AND MORTAR STORES:
NICE OR NEED TO HAVE?
Research, Uncomplicated.
WE WONDERED:
In early 2016, the world’s largest company by revenue,
Walmart, announced that it would close 269 locations
around the world. With today’s tremendous increase of
online stores and the closing of traditional retail spaces, we
wondered whether or not the age of the brick and mortar
ARE STORES was dead.
GOING EXTINCT? As the expectation of convenience increases within the
shopping space and consumers of all ages begin to feel more
comfortable shopping online, do brick and mortar stores still
matter? Are they in jeopardy of becoming extinct due to
cost-efficient online marketplaces?
And while some stores are closing their doors, the country’s
largest Internet-based retailer, Amazon, has opened its first
brick and mortar stores.
In order to find out more, we surveyed 844 consumers and
conducted 82 in-depth conversations with consumers
ranging in age from 15 to 65+.
HERE’S WHAT WE LEARNED…
2
STORES ARE HERE TO STAY
Experiencing Products Through the Senses Builds Trust Faster Than Online
Especially when purchasing products that consumers wear (clothing, cosmetics, shoes), shoppers want reassurance of their purchase through
touching items and trying them on in the store. Familiarity with a brand’s fit and styles may result in future online purchases, but the first in-store
impression of the brand is critical for building loyalty.
Believe it’s important for brands to have a physical store vs.
74% online only. This sentiment is strongest among Millennials Physical stores deliver:
and Gen Z. • Trust
• Confidence
• An experience, not
Still make most of their purchases in-store (vs. 26% mostly just a product
40% purchasing online).
Net importance of having a physical store:
82%
“Yes, shopping in a physical store gives me the “The Store Experience is good for me for
80%
69% ability to actually touch the product and see if returns and actually seeing and touching the
65%
it meets my needs. Shopping in a store is products, other than that I would be all for
more of a social event for me. I go with friends online shopping.” – Male, Millennial
MILLENIAL
BOOMER
and family and run into other friends. I go to
GEN Z
GEN X
3 physical stores to get ideas more than make a
purchase.” – Male, Gen X
EVERYBODY’S GOT THEIR SOMETHING
What Motivates Each Generation to Visit Stores?
Gen Z Seeks Reassurance and Trust Through the Sensorial
Shoppers like trendy fashion stores with good deals. Stores like Charlotte Russe and Forever 21 match their
price points and give them an opportunity to try on sizes and styles that are difficult to figure out online.
Favorites like Sephora offer samples and demos to provide reassurance before purchase. On top of it all, they
don’t want to pay for shipping or have to wait for products to arrive; in-store delivers the immediacy they crave
with no added cost.
Millennials Seek Efficiency without Comprising on Quality
Launching their careers and possibly balancing young kids, Millennials feel more of a need to shop. This can
get difficult, though, with families and busy schedules. Millennials like big box stores to save time and increase
efficiency. They’re spending a lot of money, and lean on coupons or rewards to help.
Gen X Seeks an Escape and New Discoveries
Gen X-ers are likely nearing the peak of their careers and watching their kids get a little older. Life is hectic.
While they like big box stores to save time, they also want an escape from the everyday (calm music, coffee,
new displays), often looking to stores like Target for this balance.
Boomers Seek Comfort and Space
When deciding on a store, Boomers need a comfortable shopping experience (low music, light scents, seats).
Whether they’re retired or they’re still employed, Boomers typically have more fixed incomes or even less
household income overall. They’re more price conscious, often saving for future generations, and they want to
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see and touch products before buying. Furthermore, this sensitivity to price makes them resent shipping costs.
Meet Jessica
GEN Z:
Trust Through Experimentation
Jessica is a vocational school graduate who is currently an admissions advisor. When
not working, she’s usually with her boyfriend, friends or family. She likes to go out to
eat and to the mall. Her favorite stores are Sephora, Charlotte Russe and Forever 21.
[Forever21] offers a wide variety of clothing
for good prices … they have nice boots and Jessica thinks Sephora is super fun because she can play with the colors and textures
classic sneakers which are usually on sale. while trying on different products. She loves to try on all the latest styles in Charlotte
Their staff is pretty nice too. Russe and Forever 21. These stores have young and trendy clothes that Jessica fell in
love with after spending awhile in the dressing room checking out the fit.
Charlotte Russe because their clothes are cute and
made well … The store feels open and welcoming. Jessica is just starting out her career and has to budget her spending (even though
It smells like the perfume they sell and there's a she loves to shop and stay in style). That’s another reason she loves these stores the
warm feeling coming from the employees. most – the deals! While Jessica may do some shopping online (if she can get free
shipping), most of her purchases are at the mall where she can be sure the clothes or
cosmetics are just right for her before spending her hard earned money.
5
Meet Jose
MILLENIAL:
All About Efficiency
Life is all about convenience and everyone is always
in a hurry. If I can't find things at a store, or it takes Jose is an engineer who likes to go to the gym and stay fit and active when he’s not
too long, or even too long to check out, I would
working. Jose and his wife have two children, ages 2 and 4, and one on the way. Since
rather go somewhere I can get in and out quicker,
Jose’s wife also works full time, they typically shop on Saturdays with the kids.
even if it is a little more expensive.
Sometimes they all go to Costco, and other times Jose takes one child to Best Buy,
Footlocker or GameStop to buy specialty items while his wife and the other baby are
BestBuy has great customer service and for me at Target buying household and grocery items.
at least it's easy to find what I'm looking for.
Also, they don't overprice their items. They also Jose loves Costco for the variety of products and feels savvy when he can buy in bulk.
have a good return policy. He also loves Best Buy, Footlocker and GameStop for the quality products and
excellent customer service to help him find the right product quickly when he isn’t
Store experience is huge…I have sure.
younger kids who are loud and get
bored easy. I need that experience. Jose’s main goal is to shop quickly and efficiently before the kids are tired. But, he will
I don’t need [to get] stressed out not compromise on quality products to fit his needs for a quick shopping trip. With
6 more than I already am. three kids, he needs to use his money wisely now in order to save for the future.
Meet Angela
GEN X:
Seeking a Pleasant Escape
I love to shop in Target and Whole Foods just because
they have fast check out and they have a wide variety
of organic groceries … Target is very organized and Angela is the manager of the Human Resource department for a large corporation. She
clean. If I’m standing in the store right now I would and her husband work long hours through the week, but manage to keep up with her
imagine it being cozy and has a warm ambience and middle and high school kids’ activities each night. At the end of the work week, they are
smells nice like scented candles but not so strong that
exhausted. On Saturday mornings, Angela’s husband has soccer practice duty while she
it hurts my nose, but just right that it will make me feel
sneaks away to do the family shopping.
good shopping.
[To improve store experience:] Music is Angela’s favorite store is Target. She feels as though it’s an escape from her busy week.
calming/soothing and has a tendency to Her first stop is the Starbucks just inside the door. She can sip her latte while shopping
make people stay in the store longer, as she begins by browsing the dollar section at the front. She loves browsing the aisles
therefore, spending more $; pleasant to find the new trendy items of the week and even tries on and purchases clothes for
smells throughout the store…associates herself or for her kids. The relaxing music and homey smells of coffee, popcorn and
available if needed - questions can arise at candles put her in a good mood. Her last stop is the grocery section where she can pick
anytime during shopping; clear pricing on up everything her busy family needs for the week ahead (even fresh organic produce).
merchandise/price scanners in lots of
Angela values this time as a quick escape to refresh for a few hours (while also taking
areas - nobody wants to waste time
care of family errands). Kohl’s and JCPenney are two other shops where she can have a
7 guessing at the price of items.
bit of time to herself.
Meet Mary
BOOMER:
Prioritizes Comfort and Space
My favorite store to shop at is JCPenney. They have
some really good bargains if you take the time to look
hard enough, and their products are high quality …
they have been around a long time and are still here Mary is recently retired and anxiously waiting for her husband to do the same so
today in spite of the big box stores. It is clean and the they can begin traveling. Since leaving the workforce, their combined income has
products aren't laid out in straight isles like other decreased substantially. And with a new grandbaby, their financial advisor
stores, but in groups and sections. It doesn't have the recommended they start a college fund for their grandchildren and a travel fund for
“food smell" like the big box stores - it smells like their retirement. This means Mary has to budget wisely when it comes to shopping.
clothes. Mary typically shops during the week while her husband is working. She enjoys
going to Bed Bath & Beyond, Hobby Lobby, Walmart, Kohl’s and the mall.
[Factors of a positive store experience:] The
openness of the store, the lighting needs to be
Mary’s favorite store in the mall is JCPenney. Not only can she can park close to the
true to color, fitting room needs to have a seat
entrance, but it has wide aisles, clear signs, organized departments, bright lighting to
and a place to hang your clothes (the seat
needs to be secure and solid enough for older
easily view the products, and a comfortable dressing room. She also loves the great
people to sit). Check out should be easy and you deals she finds on her clothes and household items.
shouldn't have to search for it. Sizes in
departments should be plainly marked so I'm In general, Mary values a safe, comfortable store with quality products at valued
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not searching for x large department. prices so that she can focus on saving for her future with her family.
SHAPING THE EXPERIENCE
Now that we know brick and mortar stores
are critical, how do we go about creating
the ideal experience for customers?
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WHEN DOES IT MATTER?
Store Experience is Important When: Shoppers Care Less About Experience When:
Buying high priced items They’re not in a hurry or looking for something specific (just browsing)
Buying specialty items (like a prom dress) They just need an ‘emergency’ item (as long as they can find it quickly and
checkout is fast)
Buying items they need help deciding on, trying out or understanding (i.e.
electronics) The item needed is only available at one particular store (no
competition or choice of stores to shop)
In a hurry (especially around holiday times)
Visiting the store for the first time
“When buying an outfit/dress for an important event “When I need to
“It matters less when someone is just browsing
like prom.” – Female, Gen Z physically try on clothes,
because they are not looking for something “It always matters except in
shoes, etc. to make sure
specifically.” – Female, Gen Z cases of emergency. If I need
they fit.” – Male,
milk for my family at
“It is important because if it is your first Millennial
“When shopping for store specific items. If midnight, then I will go to the
time there and you had a good
something is only available at one particular store, closest place to get it done
experience you will go back. If you
the experience itself means less.” – Male, Boomer quickly.” – Male, Gen X
didn’t, you will not return.” – Female,
10 MillennialDEFINING THE IDEAL EXPERIENCE
Variety of Products 88%
When Imagining Their Ultimate In-Store Experience,
Consumers Look to Four Major Categories: Convenience 86%
Ease of Finding Products 86%
Customer Service 81%
Ease of Return 74%
Customer Product
Service Interaction Quality of Products 74%
Store Ambience 65%
Values & Morals 64%
Store
Convenience Environment Uniqueness of Products 51%
Store Clientele 51%
11MAKE IT One of the most critical in-store touchpoints influencing purchase behavior
PERSONAL and loyalty is customer service. A store can meet shoppers’ criteria by
offering desirable, well-priced, quality products, but a poor customer
service experience can trump all else – and may result in shoppers walking
away from a purchase, or worse, avoiding the store the next time.
At the very least, shoppers want to feel respected and welcome, but stores
that go above and beyond to gain loyalty offer that extra touch of
personalized care, treating shoppers like a trusted friend.
Be Helpful/Respectful Be a Brand Ambassador Be a Friend
At a minimum, retail employees should Store employees are a reflection of the Great retail employees listen to shoppers’
make shoppers feel welcome (via a friendly company, and should embody the brand’s needs and offer real advice and
smile and greeting when they walk in) – values and personality. personalized recommendations without
like they are excited by, rather than pressuring shoppers to buy.
bothered by, shoppers. While product knowledge is expected,
superior customer service comes when Those that truly go above and beyond in
Retail employees must be available when employees have personal, first-hand generating loyalty remember shoppers’
help is needed (particularly at busy/peak experience with the products they sell. names and shopping preferences.
times), without invading personal space.
Shoppers also appreciate when staff walk Know the product selection and store well
with them to help locate a product.
12 enough to offer details and advice.I feel like Customer Service IS the store. If you
want my business, then welcome me like a
friend. I love it when I know a few
employees and they recognize me. It is so
MAKE IT much more personal and feels good. Makes
me return time and again. – Female, Boomer
PERSONAL
The [JCPenney] employees are awesome because
they don't seem to be there just for the job itself,
they reach out to you on more of a personal,
loving level … For example, my husband and I
went in to look for wedding rings … The lady at
the counter was so patient in helping us fit and
try/view rings ... Not only did she do her job there,
she was so excited for us and asked us many
questions about our plans for the wedding, where
we're having it ... you know, the more personal
questions than just her job ... Long story short, her
husband was a pastor, who ended up marrying
us, and we bought our rings there with her help
... Before we went to JCP, we went to Kohl's, and
the lady there actually sighed when I asked if I
could try on a ring ... I was excited to go ring
shopping, but her actions just brought me down.
– Female, Millennial
13PRODUCT INTERACTION
ENCOURAGES PURCHASE
Perhaps brick and mortar’s greatest leverage over other channels, the in-store, first-
hand experience helps consumers feel confident to try and purchase new products.
Close-up Straightforward, Plenty of mirrors Samples or demos Options to ensure
experiences with reliable return and fitting rooms to decide on right fit/quality (e.g. fit-
new styles and policies that that are comfortable product perfecting
trends mitigate purchase and accessible technology, access
risk to products)
Shopping in a physical store gives me the ability to actually touch the product and see if it meets my needs. –Male, Gen X
Loving technology like I do, it's almost like a sense of awe and amazement. Finding something new that you never
knew existed until you walked into the store and saw it with your own eyes. Getting to actually touch and feel these
14 little technological marvels in the palm of your hand is just awesome. – Male, MillennialCONVENIENCE IS
EXPECTED Customers of all ages value convenience. While Millennials look for
efficiency, Boomers look for stores that are easy to maneuver. Pairing speed
and accessibility with personal touches let consumers know that their time
spent in-store is valuable.
Necessary: Make Things Quick and Easy Even Better? Accommodate Their Lifestyle
• Speedy check-out process with ample cashiers or self-checkout • Electronic order counters
• Employees that can help find items quickly • Kid friendly (carts, etc.
• Convenient store hours and parking • Nice carts or totes for carrying products around the store
• Dressing rooms that are spacious and well-maintained • Phone charging or reclining chairs for those waiting either on others to
• Wide, clutter-free aisles that allow people to easily move throughout the shop or for a dressing room to open
store
• Clear and easy to read signage
• Products sorted and organized into categories
• Store layout that is convenient and intuitive so consumers can find items
and sections quickly and easily
15My perfect shopping trip is to get in, get what I
CONVENIENCE IS need, and get out. –Female, Boomer
EXPECTED
The ability to go in and get what I need,
without people bothering me or trying to push
products on me. I can go in and get what I
came for, and get out fast. –Female, Gen Z
Being a mom of 3, getting in and out of the store
easily can be a challenge...so knowing where
products are, or should be laid out in the store
makes the trips with the kids easier, and less
frustrating...it only makes sense to put things that
go together – together. –Female, Millennial
16ENVIRONMENT IS EVERYTHING
While store environment and the sensory experience don’t make or break the purchase decision, the
atmosphere impacts consumers’ shopping mindset as well as their perceptions of the brand.
LIGHTING
• Bright or natural lighting to see products clearly and make the store look
clean and vibrant.
SOUNDS
• Relaxing music that’s not too loud, encourages positive vibes.
FEELING
• Emotionally, consumers want to feel good about where they invest.
Supporting a company with poor values and morals leave consumers feeling
guilty.
APPEARANCE
• Attractive displays and endcaps to encourage browsing.
• Flowers and/or other welcoming decorations.
• Modern design with a wide, open feeling.
• Mostly natural/neutral colors with areas of pastel/muted, bold or trendy
colors to catch the eye.
SCENT
• Clean smell or smells of the perfumes, fabric or food sold.
• No overbearing scents of cologne or perfume.
• When applicable, new product smell (leather gloves, shoes).
[Stores] should be very up to date with an excellent design in all aspects. In other words, modern. It should have an excellent sound system for music. Big,
17 beautiful dressing rooms and the best racks and mannequins, etc.,for displays. It should be fairly neutral in color except for a few places that should have
bold colors to attract attention. Flowers in a few places would be nice. Artificial is fine. –Female, MillennialSPOTLIGHT ON BIG BOX STORES
What makes big box stores different? They have benefits and drawbacks in three categories.
Store Personnel
The upside is that more employees equates
to more hands on deck to field customer
questions, help locate products, and
maintain the store. The downside?
Convenience Consumers complain that some big box
Big box stores are convenient for a plethora stores have poorly trained employees that
of reasons. They carry a variety of products, are lacking in product knowledge and fail to
preventing customers from having to drive respect customers.
to multiple stores to get what they need. On
the flipside, consumers have a hard time
with inconsistency between stores – they
expect a similar experience at each, and
that’s not always what they find in terms of
selection, layout, maintenance, and
Layout
management. This ultimately causes them Larger stores allow for easy navigation. Wide
to spend more time shopping than they’d aisles allow customers to navigate a store
like. that’s usually organized by product type in a
more logical way than smaller stores can pull
off. That said, these cavernous spaces can
feel cluttered and dirty if not well maintained
on a regular basis.
18IMPLICATIONS 19
IMPLICATIONS
EMPLOYEES ARE ESSENTIAL IN BUILDING LOYALTY: INSTITUTE STRINGENT HIRING + TRAINING CRITERIA
Store employees are one of the most influential touchpoints in driving purchases and building brand loyalty. Resources should properly be invested to ensure they’re delivering the expertise
shoppers desire in an accessible, helpful and respectful way. Hiring employees that are passionate about the brand and industry will translate into better attitudes, better service and
potentially increase brand loyalty or sales. In-depth training and employee familiarity with the products equips the team to answer and assist consumers.
ENCOURAGE PHYSICAL INTERACTION WITH THE PRODUCT
Brick and mortar stores provide consumers the chance to experience and interact with products. By encouraging interaction and ensuring that nothing impedes exploration, stores can provide
the confidence consumers need to go from browsing to buying.
SMALL PERKS GO A LONG WAY TO IMPROVE EXPERINCE
Things like free samples, demos, small snacks/drinks, Wi-Fi, phone charging or even in-store coffee shops or restaurants are great ways to help customers relax and enjoy themselves. Delivering
value-adds in line with the brand help make shopping a rewarding destination, not just a transaction.
WELCOME MILLENIALS AND GEN-Xers BY OPTIMIZING FOR FAMILY VISITS
Offering a fun destination for the kids and a relaxing escape for the parents will keep Millennials and Gen-Xer’s browsing in the store longer, purchasing more, and returning to the store more
often to shop.
DO YOUR HOMEWORK ON STORE ORGANIZATION AND LAYOUT
Wide aisles with easy navigation through the store and product categories intuitively laid out within departments greatly contribute to a positive experience and allow consumers to find their
products at a relaxed pace. Take advantage of research that’s already been done to educate yourself on what’s best for each type of store. Conducting shop-a-long studies gives brands the
opportunity to see their store from consumers’ eyes and generate ideas on how to improve layout, organization, and more.
FIND THE LOCATIONS THAT PLEASE AND REPLICATE ELSEWHERE FOR CONSISTENCY
Consumers recognize that locations within chain stores are not consistent. These larger brands need to understand what people love about their top locations and despise about their lower-
performing locations. Ensuring that the winning factors are implemented across all locations will improve consistency and therefore experience.
20Project Specifics
20|20 conducted a survey with 844 consumers and followed up with 80 for one-on-one
conversations (average duration of 60 minutes).
THE METHODOLOGY Target Consumer Criteria
• Age 15+
• Even Mix of:
• Gen Z (15-20)
• Millennials (21-33)
• Gen X (34-50)
• Boomers (51-65+)
• Male/Female
• Shop in-store or online at least monthly.
ThoughtPath
Our qualitative research is based on our proprietary cognitive approach, ThoughtPath.
Drawing on theories of cognitive psychology, ThougthtPath enables our skilled
moderators to get engage more meaningfully with the consumer, and to discover what’s
most important to them, what’s not, and why.
21Research, Uncomplicated.
22
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