Hammerson, the UK’s leading retail property specialist by market capitalisation, has launched its 2015 Retail Report *; “Shopper Tribes”, in conjunction with retail consultant, Conlumino, to reveal the evolving shopping habits of the UK’s consumer and a definitive portrait of the modern shopper.
DEDICATED TO RETAIL – THE SHOPPER TRIBES
The report shows that while digital innovations and research tools have empowered the consumer, they have also made the shopping trip more complex. An average journey including browsing, researching, checking prices and purchasing now takes more than four hours, with nearly 40% of this time spent in store. The findings highlight the different habits of today’s Shopper Tribes:
18-34 year olds
CHANNEL SURFING ENTHUSIASTS
- Keenest shoppers
- Spend longest time browsing
- Surf wider variety of retailers via varied devices/channels
- Shop most regularly
- Price and product range is of primary importance
35-54 year olds
- Enjoy shopping but don’t get to do it much
- Spend most as a group (in terms of broad contribution to retail spend)
- Most frugal, with the sharpest focus on price
- Most promotion driven
Those aged 55+
FOCUSED FUNCTIONAL SPENDERS
- Forecast to be the biggest contributors to growth in non-food retail
- Regard shopping as a chore – particularly men
- Convenience, quality and service more important
- Most focused and efficient
- Loyal to a smaller range of trusted retail brands
The report highlights consumers’ constant access to retail and the ability to shop whenever and wherever they choose, with most (86%) now using two or more channels. A quarter of younger shoppers (24%) use four or more channels, with over half (58%) using mobile or tablet devices whilst shopping.
Despite the lengthy research and browse time, the consumer seeks instant gratification with a staggering 96% unwilling to wait more than three days to collect a purchase.
BLACK FRIDAY AND ‘HALF PRICE’ FOUND TO BE MOST EFFECTIVE PROMOTIONS
More than a third of channel surfing enthusiasts (35%) say they spent more because of Black Friday – with nearly three quarters (71%) using the promotion to treat themselves. More than half of consumers (53%) plan to do even more of their Christmas shopping on Black Friday this year
The time-stretched value hunters are most promotionally driven, with a fifth of their overall spend dedicated to deals. Across the tribes ‘half price’ is the most appealing offer, with ‘limited time’ and ‘online only’ offers resonating mainly with the younger age group.
CLICK AND COLLECT THE PREFERRED METHOD FOR SHOPPERS
Although home delivery is still the most widely used fulfilment option for online purchases, consumer frustrations are notable with half of shoppers (50%) claiming delivery times and charges are off-putting. As a result, Click and Collect is increasingly seen as the preferred option, with 55% of consumers saying they would use this fulfilment method if retailers offered it.
David Atkins, CEO at Hammerson, said: “In many ways, the proliferation of research tools and digital innovations has democratised shopping, empowering consumers but also giving retailers numerous touch points to reach their customers and engage with them along the journey. With nearly two fifths of this shopping time spent in store, there is a real opportunity for retailers to showcase a proposition that is unmatched in the online world, and for landlords to provide experiences beyond pure retail that capture and extend customer dwell-time.
Maureen Hinton, Group Research Director at Conlumino, said: “Technology and changing consumer habits are making retailing far more complex for both consumers and retailers. Despite the range of channels and devices on offer to shoppers, stores remain a major element of the shopping trip. However they must deliver more than convenience and offer inspiration to their customers so they are not just collection points but also destinations.”
Lindsay Noton, Head of Corporate Communications
Tel: +44 (0) 20 7887 1111
Josephine Corbett/ Eleanor Purdon, FTI Consulting
E: Josephine.Corbett@fticonsulting.com; Eleanor.Purdon@fticonsulting.com
Tel: +44 (0) 20 37271109 / +44 (0) 20 37271606
Notes to Editors
**The 2015 Retail Report – “Shopper Tribes”
“Shopper Tribes” is the third report from Hammerson’s annual retail series which is conducted in conjunction with retail consultant, Conlumino, and enables Hammerson to best support its retail customers in keeping abreast of the latest consumer trends.
Consumer research in this report is based on a UK-nationally representative survey of 2,000 shoppers. All numbers relating to expenditure and forecast expenditure are taken from Conlumino’s own retail model. This is updated on an ongoing basis with inputs from official sources (such as the BRC and ONS), retailers’ results and trading updates, industry sources and other secondary sources. Unless otherwise stated all sources are derived from Conlumino’s and Hammerson’s own research and should be referenced to Hammerson/ Conlumino.
Hammerson is a FTSE 100 owner, manager and developer of retail destinations in Europe. Our portfolio of high-quality retail property has a value of around £7.7 billion and includes 22 prime shopping centres, 22 convenient retail parks and investments in 15 premium outlet villages, through our partnership with Value Retail and the VIA Outlets joint venture.
Modern shopping mission now lasts 247 minutes on average
Contrary to being a time saver, technology has extended the modern shopping mission with younger groups most prone to drawn-out browsing
More than half of consumers rarely purchase items at full price (57%)
71% of consumers think retailers exaggerate the level of discounting they offer
53% of consumers plan to do more Christmas gift shopping on Black Friday this year
Technology / channels
86% of consumers use two or more channels to shop
Only 4% of consumers are prepared to wait more than three days for an online order to arrive
Younger age groups most likely to use variety of channels (24% of 18-34s use 4 or more channels, vs 11% 55+s)