The latest consumer research from IBM’s Institute for Business Value paints a retail landscape laden with various challenges and opportunities for retailers and brands. But one glaring perception in the consumer mindset spells disaster for the industry: many of the 20,000 respondents polled by IBM say today’s shopping experience is not the best.
The report revealed “a widening gap between shopper demands and the current retail offering,” said the report’s authors, adding that of those surveyed, just 9 percent of consumers said they were content with the in-store experience, and only 14 percent said they were content with online shopping.
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“Yet technology could play an important role in enhancing the overall shopping experience, with over half of the respondents indicating they are eager for AI enhancements like virtual assistants (55 percent) and AI applications (59 percent) as they shop,” the report stated. “Influenced by inflation, six in 10 consumers surveyed also say inflation has impacted how they shop, with 62 percent saying that price is a top reason they switch stores or brands.”
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As a result of inflation, shoppers are turning to flexible payment options, “with 55 percent desiring more varied payment options and 46 percent reporting they would like to pay for their purchase in installments.” The report’s authors said as inflation and economic uncertainty pinch pocketbooks, “62 percent of consumers surveyed also say price is a top reason they would switch stores or brands.”
Luq Niazi, global managing director at IBM, said in the face of rapidly shifting consumer expectations “and the stark realities of today’s economic picture for households, the retail sector is presented with an ongoing challenge — and an unprecedented opportunity.”
Niazi said today’s shoppers have more choices and channels and are increasingly making buying decisions based “on the cost and the quality of experiences that retailers provide.”
“The IBM IBV Consumer 2024 Study underscores an opportunity for retailers to integrate AI and other technologies into both digital and physical shopping experiences to meet these changing consumer demands and their economic challenges,” Niazi said. “Leveraging advances in AI technologies, retailers can forge ahead into a new era of commerce and fulfillment, leading with innovation to create shopping experiences that are intuitive, unified, personalized and efficient.”