Driven by the retail apocalypse narrative, retailers are racing to find new ways to entice shoppers back into stores. Many are looking to experiences to create excitement but not all stores can host a continuous slate of yoga classes, makeup tutorials and runway shows. And the good news is, they don’t have to. Rather than transforming shopping into a three-ring circus, some retailers are finding results in elevating the fundamentals of retail, which start with engaging product, easy to shop environments and seamless transactions.
Sourcing Journal’s 2019 Payments Report, dubbed Consumers, Checkout & Creating Experiences That Resonate, provides insights into the latter. The report, which is sponsored by payments firm Klarna, highlights how stores are transforming checkout to meet the needs of today’s consumers. It also takes a deep dive into the impact of voice on the shopping experience, the rise of cashierless stores and the adoption rate of alternative payment methods.
Key findings include:
Millennials are almost twice as likely as GenXers to rank debit cards as their first choice of payment. What does that mean to merchants? First, unlike heavy credit card users, these shoppers are limited to the funds they currently have in their bank accounts. Meaning if they don’t have it, they can’t spend it. Further, they’re more likely to hesitate on a purchase if they’re not sure they’ll love it since it often takes days, if not weeks, to secure refunds on returns. Thanks to service providers that have rushed in to fill the void, stores need not miss out on sales.
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Mobile wallet use is on the rise. It is estimated that 2.1 billion consumers will use mobile wallets in 2019, which represents an almost 30 percent increase over 2017. For retailers, this means shoppers are starting to expect more options at the register than cash or credit. Increasingly, they want to tap and go in stores and they expect one-click checkout online.
While the majority of consumers actually do enjoy shopping in store, an almost equal amount say checkout is a headache. And these days, they don’t have to put up with it. Shoppers are spoiled for choice. If the line’s too long at one store, they can easily head to another or hop online. Stores need to carefully weigh the opportunity costs of lost sales against the investment needed to update their checkout procedures.
Download the full report here to learn more about what’s driving mobile wallet use internationally; how shoppers’ needs vary by demographics; what consumers like about shopping—online and off; the technology that’s transforming in-store experiences; and the psychology of shopping and how to harness it.
Klarna‘s payment solutions help retailers online and face to face, and offer true choice at checkout. No matter what retailers sell, Klarna’s products are designed to give customers the best experience and developers an easy life.