Surge in e-commerce plateaus as most consumers expect return to physical stores: Capgemini

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Online may replace in-store entirely has been disproven, as majority of consumers (72 per cent) expect to have significant interactions with physical stores after the pandemic subsides, states a recent study.

According to Capgemini Research Institute report, “What Matters to Today’s Consumer”, all age groups expect their level of in-store interactions post-pandemic to be higher than their online interactions. Boomers are the most likely to interact in-store (76 per cent), and Gen Z the least likely (66 per cent).

Post-pandemic, 22 per cent of shoppers expect to have a high level of interactions with click-and-collect orders (ordering online and picking up in-store or curbside), indicating an enduring desire to interact with physical stores.

Additionally, shoppers are less willing to pay a premium for fast delivery. Across all shoppers, 3.3 per cent of the total cost is the average they would be willing to pay for two-hour delivery, down from 4.6 per cent in 2019, states the report.

Health and sustainability continues to remain on top of the shoppers’ minds. About 44 per cent of consumers are willing to pay a premium for grocery products that have sustainable packaging, states the report, highlighting that it is more pronounced amongst Gen Z (64 percent) and Millennials (54 per cent) than older generations like Boomers (30 percent).

The report further shows that Gen Z and millennial shoppers are now more likely to order products directly from brands. More than two-thirds (68 per cent) of Gen Z and over half (58 per cent) of Millennials have ordered products directly from brands in the past six months, compared to 41 per cen on average across all age groups.

The young shoppers also don’t mind sharing their data in return of loyalty discounts while buying directly from brands.